Urbium rolls out mini-Tiger Tigers

Boosted by its move into the City of London, night-time operator Urbium is to roll-out smaller format Tiger Tiger venues over the next three years.

The first, a 1,300 capacity venue in Aberdeen, is to be followed by a Tiger Tiger opening in Cardiff later this year.

Another eight of the integrated nightclub, bar and restaurant venues are planned for opening within the next couple of years, primarily in the City of London where Urbium has been expanding.

Last week the company reported record pre-tax profits of £11m for 2004, up 18 per cent on the previous year, with a five per cent increase in West End trading where Urbium's estate is concentrated.

Finance director Steven Palmer said: "We haven't had sales growth like this since '99/'00, and it reflects the strength of the economy in the South East. People have disposable income and they are spending it."

The City agreed, with analyst Douglas Jack of Panmure Gordon advising: "Believing the stock to be undervalued, our stance remains 'buy'."

Of Urbium's 29 units, 17 are in London's West End, but the most significant development has been the company's move to exploit the under-serviced City of London. Five new venues were rolled out in 2004, with more sites already chosen for further expansion.

"We have identified where we want our City venues to go," confirmed Mr Palmer. "The area is like a series of little villages around the transport nodes and this is where we will be rolling-out the smaller format Tiger Tigers."

On the strength of last year's trading - which saw a reduction in both gearing and debt - Urbium says it has the ability to fund £30m worth of expansion over the next three years, plus monies left over to tweak its growing estate.