Eclectic Bars reports profit boost
Eclectic Bars has reported a 19% uplift in total sales for the 12 months to the end of June.
The owner and operator of 12 bar and nightclubs, including seven Po Na Na venues, reported like-for-like sales were up 11% on last year.
There has been a 39% rise in site EBITDA from £2.1m to £2.9m in the current year thanks to the development of new and existing businesses.
Eclectic opened a Sakura in Lincoln in October 2007, which is now well into its second year of trading — it has delivered EBITDA some 67% ahead of management expectation for the financial year.
The latest Sakura, which opened in Reading in May 2008, has now passed the one year mark and has delivered EBITDA some 63% ahead of management expectation for the financial year.
Total sales for the 16 weeks to 18 October 2009 were up 14.3% on the same period last year and up 2.9% on a like-for-like basis.
A spokesman said: "These trading results are underpinned by the strength of the business in the student market. Strong midweek sessions ensure that the business is much more resilient in these recessionary times.
"In addition where competitors are now resorting to discounting as a tactic to drive business, Eclectic continues to focus on delivering added value for its customers.
"Improved product ranges, excellent DJ's and live entertainment, together with quality service and standards are the bedrock of this success and put Eclectic's business firmly at the premium end of the market."
Refurbishment
In the final weeks of this financial year, Eclectic refurbished its Chelsea club, Embargo, and it has re-emerged as Embargo 59.
Amongst some of the more interesting elements to this design is the walk-in cigar humidor adjacent to the 60-seat VIP area, where customers can buy from a hand-picked selection of fine Havana cigars then enjoy them on the significantly expanded open air terrace.
The spokesman added: "It is testament to the confidence placed in the team that Eclectic's bankers provided a senior debt facility to fund the refurbishment works. Since re-opening, Embargo 59 has been trading significantly ahead of forecast and last year. "Eclectic's strategy continues to be to assemble, grow and improve a large portfolio of bars.
"The current brands within the Eclectic estate have over the years proven themselves to be strong and resilient cash contributors and so provide an excellent template to develop many of the venues and businesses coming on the market today from failed operators.
"Depressed market conditions continue to present opportunities for acquiring venues and businesses at sensible prices and enable Eclectic to continue its roll up play in this sector."
