Po Na Na, the late-night bars and venues operator which was forced to slow its expansion after being dragged back by underprerforming sites, said yesterday it had renegotiated its banking facilities to give it £2m for the acquisition and development of new sites.

In a trading statement it said sales for continuing units in the first six months to the end of March 2003 have been "in line with expectations", without the need to discount prices to drive sales in what was a very competitive market.

The new Brighton Po Na Na was profitable within five weeks of opening, "demonstrating the strength of the brand", the company said. A two-floor unit in Portsmouth trading as a Boom and a Po Na Na is due to open by the end of this month, and at least two further units are expected to open in this financial year.

The company said it had sold 10 underperforming units and was confident that by the announcement of its half-year results in November, the sale of most of the remaining nine underpwerforming sites in the disposal programme will have been completed.

It said that the two-year earn-out of the acquisition of DP Group, has now ended, and David Phelps has been given a new role as commercial director with responsibility for product pricing and national contracts.

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