Atmosphere Bars & Clubs, the Sun Capital Partners-backed nightclub operator, has reported a £4.85m loss for its first year of trading to 27 February 2011, on the back of costs related to its formation and acquisition of 31 sites from 3D Entertainment. Turnover for company, which is led by Paul Harbottle and understood to be one of the suitors for the rump of the remaining Luminar estate, stood at £24.2m for the 53 weeks to 27 February, with underlying ebitda of £1.141m. The group said profits in its first year were “significantly reduced” by exceptional items totalling £2.44m, parent company management fees and certain one-off costs related to the acquisition of the 31 sites and their transition to the limited company. The accounts filed at Companies House show that the group paid £8.013m for the 31 former 3DE sites. The company said that Sun Capital had injected a further £1.5m into the business at the end of August 2011 to aid further capital expenditure and to provide working capital support. The group said that it the late night sector was expected to remain “very competitive for the foreseeable future”. It said it had taken a number of actions in order to increase its appeal to customers including opening some of its venues during the daytime, implementing a food offer in a number of venues and widening its range of drinks, with more premium products on offer. Chief executive Harbottle recently said that the company, which currently operates 29 leasehold clubs including a number of Chicago Rock outlets, was looking to double in size to around 60 sites in the next two years and would look at the possibility of acquiring another group. The group’s most recent opening was the Modello Bar & Kitchen in Bedford, which opened following a £1m refurbishment.