The Deltic Group, the UK's largest operator of premium late night bars and clubs, sets out its results for the year to 25 February 2017, reflecting the fundamental strength of the business and providing a strong platform for growth.
The overall trading position of the firm has been steady with 1.4% growth in turnover to £102.2m. Underlying EBITDA is in line with the prior year at £13.3m, representing a strong performance over the period.
During the period, the company saw pre-booked sales rise by 47%. Local managers are given autonomy for addressing performance with support from the centre, and during the year further investment was made in sales teams in a number of venues, supported by the customer data that the group captures to promote pre-booked sales. This enables the sales staff to target customer leads based on historic engagement or interest expressed by the customers.
Deltic has also increased investment in music led entertainment, delivering popular and on trend acts for student nights and weekends alike.
By the end of 2016 three quarters of the estate had undergone major refurbishment, many having been rebranded, with all units refreshed with investment in new fixtures and fittings.
Deltic has opened three more of its bar concept, Bar&Beyond during the period, operating seven days a week and capturing earlier evening trade with an improved food offering. Further openings have been approved by the Board for the subsequent period.
The trading performance continues to improve and there will be further improvements in the future from the continued refurbishment programme.
In 2017, the firm has already opened Kings Lynn Bar&Beyond, Portsmouth PRYZM, and ATIKs in Edinburgh and Gloucester with further investments planned in Hull, Wrexham, Uxbridge and Bournemouth.
The late night sector has faced a number of challenges historically, including the impact of student fees. Despite this, Deltic has seen its admissions grow by 6.8% over the past 12 months demonstrating that there is a continued appetite for a late night out.
Deltic believes a major factor in the performance of the sector is the under-invested nature of the properties and therefore a key facet of future improved performance of the business will arise from re-investment in the estate.
Chief Executive Peter Marks (pictured) said, 'FY17 was another exciting and successful year for Deltic. Progress was underpinned by the strength of the Deltic estate, its quality brands, and our colleagues' steadfast dedication to delivering exceptional customer experience. The Board remains confident that we are well placed to build on this momentum of the business.'
'As a leader in the late night sector, with a strong balance sheet, we were able to continue to invest in a range of long term growth opportunities. The current year has started well, with LFL sales increasing 3.85%, and I am confident that the initiatives we have in place will enable us to respond even more effectively to customer trends.'
