Atmosphere Bars and Clubs, the 29-strong nightclub operator led by Paul Harbottle, has reported a narrowing of losses in the year to 26 February due to a much lower exceptional items bill, while EBITDA and turnover both declined in the period.
Losses for the period were £4.1m (2011: £4.8m) with an exceptional items charge of £723,000 (2011: £3m) relating to impairment of fixed assets, parent company management fees, one-off costs relating to the acquisitions of sites from 3D Entertainment and other charges.
Turnover fell 11% to £21.5m against a 53-week reporting period last year, which the company said also explained the decline in EBITDA from £1.1m to £238,000.
“The decline in underlying EBITDA is attributable to the reduction in turnover and the reporting period being one week shorter than the prior year,” the company said.
Operating loss in the period was £2.9m (2011: £4.3m).
Atmosphere alluded to the level of discounting on the high street, saying “many businesses [are] discounting prices at unsustainable levels in order to attract customers”. The late-night sector “continues to remain very competitive”, it said.
The firm said it has maintained its premium pricing policy during key trading times and implemented “many enhancements to its customer offer” and reduced costs in “a large number of areas in order to ensure that it is able to withstand challenging trading periods”.
As with the previous year, directors did not recommend payment of a dividend in the period.
