The Alchemist’s turnover passes £40m mark
The operator of 16 sites saw turnover pass the £40m mark after hitting £34.5m in the previous 12 months as well as a 7% boost to its operating profit – rising from £1.63m to £1.74m during the same period.
What’s more, pre-tax losses shrank by approximately 31% as the figure fell from £298,984 to £205,372.
The Alchemist’s latest figures coincide with a 4.1% increase in the number of premium bars, as reported by CGA and AlixPartners’ latest quarterly Market Growth Monitor, which revealed that pubs and bars with a “premium-leaning” offer and that “flex” their operation to suit different times of day have been particularly successful in the past 12 months.
Off the back of these results, The Alchemist has continued to develop its premium portfolio by securing a site in Cheltenham last month having purchased two new locations in central London for a combined £2.9m investment in June.
Continued investment
Addressing its latest results, a statement from the company’s directors explained: “It has been another successful year of growth.
“Our strategy of expansion in London alongside further regional city openings has continued, with new venues opening in London’s theatre district and Old Street, alongside the first Welsh Alchemist in Cardiff.
“Moving into next year, we have secured venues in Birmingham, at Gunwharf Quays in Portsmouth, and two London sites at Canary Wharf and Embassy Gardens.
“We have been approached by several landlords keen to partner with us as we build our pipeline of new venues for 2020 and onwards.
“Sales have grown 19% year on year, gross profit has been maintained, and operating cash conversion remains strong at 111%.
“With financing already in place for the next venue openings and beyond, the business is in a strong financial position.
“In the year ahead, we will continue to invest in our infrastructure, with the continued rollout of energy-saving technology to reduce our impact on the environment, and a programme of investment into our digital customer journey.
“We are incredibly thankful to our teams and our industry partners and look forward to continuing to delight our guests in the coming year.”
As reported by The Morning Advertiser in February this year, The Alchemist’s managing director, Simon Potts, revealed that the Palatine Private Equity-backed cocktail bar and restaurant concept was working towards a sales target of £70m in 2021.
