Inventive Leisure, owner of the fast-growing Revolution chain of vodka bars, said it had pushed like-for-like profits in the bars up 8.8% in the year to 30 June, as l-f-l sales rose 3.5%.
The company, which opened 10 new Revolution bars in the year, taking the chain to 29 outlets, from Aberdeen to the West End of London, said like-for-like sales in the first 10 weeks since July 1 had climbed to 4.2%, with total company sales up by 48% over the same 10 weeks last year.
It said it had seen evidence of a reduction in the level of competition for new sites, which "can only enhance our own prospects of finding further good locations at sensible prices."
It also made a point of the reduction in its gearing, thanks to a £6m share issue, from 117% to 64%, after City investors turned shy in recent weeks of bar operators such as SFI with big debt-to-share capital ratios.
The company's chief executive, Roy Ellis, said trading in the Revolution estate from September through to May was "excellent", although year on year sales were lower during the World Cup because the bars to not include televisions. he said: "Although we believe we could have capitalised further during the World Cup by installing screens we do not believe this would have been in the long-term interest of the brand."
He said eight out of the 10 new bars opened during the year were in the larger-size format, with floor space of 3,700 sq ft, which saw average weekly turnover of £33,000 a week, equivalent to £464 per square foot per year. Standard-size bars of 2,400 sq ft brought in an average of £17,000 a week, or £368 per square foot per year. Ellis said the larger format bars, as well as generating per square foot revenues 26% higher, also cost less to develop per square foot than the standard bars and brought in higher net profit contributions, thanks to economies of scale.
Like-for-like food sales were up 7.4% on the previous year, while overall food sales increased by 100% to £1m. However, like-for-like sales in the unbranded estate, now just 9% of company turnover, were down by 6.8% and profit was down 4.9%, though every unit generated cash profit.
Ellis said vodka-based cocktails now represent over 36% of sales at Revolution, up from around 32% last year. Like for like sales of vodka increasing by 13.7% and retail sales of Revolution's own-brand flavoured vodkas rose by 44% to break the £3m barrier.
Inventive Leisure now runs 37 units in total after selling two of its unbranded bars. Ellis said the company had a strong pipeline of future openings, with three sites under construction, seven where contracts have been exchanged and others in negotiation. Five sites are due to open before Christmas
The company, which opened 10 new Revolution bars in the year, taking the chain to 29 outlets, from Aberdeen to the West End of London, said like-for-like sales in the first 10 weeks since July 1 had climbed to 4.2%, with total company sales up by 48% over the same 10 weeks last year.
It said it had seen evidence of a reduction in the level of competition for new sites, which "can only enhance our own prospects of finding further good locations at sensible prices."
It also made a point of the reduction in its gearing, thanks to a £6m share issue, from 117% to 64%, after City investors turned shy in recent weeks of bar operators such as SFI with big debt-to-share capital ratios.
The company's chief executive, Roy Ellis, said trading in the Revolution estate from September through to May was "excellent", although year on year sales were lower during the World Cup because the bars to not include televisions. he said: "Although we believe we could have capitalised further during the World Cup by installing screens we do not believe this would have been in the long-term interest of the brand."
He said eight out of the 10 new bars opened during the year were in the larger-size format, with floor space of 3,700 sq ft, which saw average weekly turnover of £33,000 a week, equivalent to £464 per square foot per year. Standard-size bars of 2,400 sq ft brought in an average of £17,000 a week, or £368 per square foot per year. Ellis said the larger format bars, as well as generating per square foot revenues 26% higher, also cost less to develop per square foot than the standard bars and brought in higher net profit contributions, thanks to economies of scale.
Like-for-like food sales were up 7.4% on the previous year, while overall food sales increased by 100% to £1m. However, like-for-like sales in the unbranded estate, now just 9% of company turnover, were down by 6.8% and profit was down 4.9%, though every unit generated cash profit.
Ellis said vodka-based cocktails now represent over 36% of sales at Revolution, up from around 32% last year. Like for like sales of vodka increasing by 13.7% and retail sales of Revolution's own-brand flavoured vodkas rose by 44% to break the £3m barrier.
Inventive Leisure now runs 37 units in total after selling two of its unbranded bars. Ellis said the company had a strong pipeline of future openings, with three sites under construction, seven where contracts have been exchanged and others in negotiation. Five sites are due to open before Christmas
