The Leeds-based bar group, which operates around 20 venues across the UK under the Box, Manahatta and Banyan brands, delivered underlying profit of £5.2m.
Site EBITDA rose by £400k to £9.7m, with margins improving from 19.6% to 20.5%.
Since year end, Arc has secured £4m in new funding to support further expansion through a mix of bank facilities and equity from existing shareholders.
‘Passion, commitment and flair’
CEO Martin Wolstencroft said: “We are extremely proud of the passion, commitment and flair our teams bring to Arc Inspirations and its brands. These strong results are a testament to their hard work and continued focus on guest experience, brand strength and operational excellence. This has enabled us to open new sites, including a first in Scotland, and a flagship in the heart of London’s Piccadilly.”
“The hospitality industry as a whole has been under great pressure in recent years, with rising inflation, the cost-of-living crisis and impacting factors following the Budget. Thanks to the continued confidence in our brands from partners, stakeholders, teams and customers, these results show we are extremely well-positioned to navigate these challenges.”
Three new sites
The group opened three new sites during the financial year, in Nottingham, Sheffield and Edinburgh (its first in Scotland), as part of its multi-brand cluster strategy, positioning complementary concepts in prime city-centre locations.
The group, which is targeting 50 bars by 2030, exited four underperforming suburban venues during the year, to focus on prime city-centre locations.
The period also delivered a record-breaking festive season, with sales exceeding £2m between 2 December 2023 and 5 January 2024, up 10.8% year-on-year. During the Men’s Euro 2024 tournament, sales rose 16.4% to £640k, with like-for-likes surging 79% across all brands on England match days.
Arc has since launched its first London venue, a three-floor Box in Piccadilly Circus — its largest site to date, and the result of a £4m investment.
The opening will be followed by a new Manahatta in Liverpool in 2026, with further sites planned for Cardiff and Edinburgh.
Speaking to The Morning Advertiser (The MA) earlier this year, Wolstencroft expressed that the group plans to expand further in London.
At the time, he said: “We’re excited for the chance to come down here, make a great success of this and build our cluster model. [We are] looking for more opportunities in London to support it and drive further growth for the business.”
He also outlined how the Box and Manahatta brands would fit the capital best.
Wolstencroft said the company was “well positioned to navigate ongoing pressures” across the hospitality sector, supported by continued investment in systems, labour planning and financial reporting.
