Eclectic Bars, the Avanti Capital backed operator, has this morning unveiled a 12% uplift in total sales and a 3% hike in like-for-like sales, which were boosted by an increase in midweek activity.
It said underlying profit for 11 months to the end of May was up by 57%.
The operator, which last week announced the launch of a new format called Lola Lo in Brighton, said it was also seeing a good increase in cash-on-cash returns.
It said that two Sakura units, which opened in Lincoln in October 2007 and in Reading in May 2008, had both exceeded targets with returns of 56% and 54% in their first two years of trading. Embargo 59, in Chelsea, which was refurbished in June 2009, has already fully repaid its investment costs, leaving it on track to deliver a return of 130% at the end of its first year, added Eclectic.
The group is also going to be opening a third Sakura in Manchester and said: “Expansion will continue next year with a number of new developments. Negotiations are currently ongoing in respect of a number of other interesting opportunities.”
In a statement, Eclectic said: “The business focus continues to deliver added value for customers. Improved product ranges and credible, entertaining DJs and live entertainment, together with quality service and standards, remain the bedrock of this success.
“Eclectic's overall strategy is to continue to assemble, grow and improve a large portfolio of bars. The current and new brands within the estate have proved to be strong and resilient cash contributors, which provide an excellent template from which to develop and enhance the many venues and businesses coming onto the market from failed operators.
“Market conditions continue to present prospects for sensibly priced acquisitions that will enable Eclectic to consolidate its strong position in the sector.”
