Tougher trading for Premium Bars and Restaurants
The tough trading conditions and rising costs faced by the pub trade have hit the full year performance at Premium Bars and Restaurants.
Chairman Mark Jones has announced his resignation from the company.
Announcing preliminary results for the year to the end of June, the company said its like-for-like sales for the year fell by 5 per cent, with the decline driven by falling drinks drink sales and door income in its nightclub buisness.
The decline was partly offset by a better performance from food and accommodation sales.
Total revenue increased by 79.8 per cent to £66m, thanks to the acquisition of the Living Room and Bel and the Dragon businesses, both of which have a higher food mix than the company's traditonal late night operations.
Premium recorded a pre-tax loss before non-recurring items of £0.9m, compared to a £0.4m profit last year. The total loss before tax for the year was £21.4m, including £20.5m in non-recurring costs including "impairment charges, reorganisation costs, provision for onerous leases and loss on disposal of assets".
Reflecting the change in the shape of the business implemented by Jones, food sales of £16.1m, up from £2.1m in 2007, now represent 24.4 per cent of the group's sales mix.
Jones said: "These full year results are against the background of a pronounced deterioration of the economy which has particularly hit the high street bar and restaurant market. Our sales have been negatively impacted by the wider economic malaise.
"The new financial year will continue to be challenging, as we expect adverse market conditions to continue for some time to come. Like for like sales for the first quarter of the financial year at -7.4 per cent, but are in line with our expectations."
Jones added: "After over three years in the business, and having overseen the acquisition and integration of the Living Room and Bel and the Dragon I have tendered my resignation to the board and given 12 months' notice of my intention to leave the company.
"The board has accepted my resignation and discussions are underway regarding the timing of my departure from the business. A further announcement will be made in due course once these discussions are concluded."
