North of England operator Chameleon Bar & Dining has reported a 46% rise in pre-tax profits in the year to 31 March after continuing to shift its focus away from wet sales, as it looks to expand.
Pre-tax profits at the seven-strong company were £109,721 (2010: £75,313). Turnover increased 2.7% to £4.5m and operating profit grew 2% to £269,470.
Chameleon, which is led by Phil Strong, said: “The company has recognised that there is significant benefit in offering good quality food with ingredients sourced locally and has successfully moved the business emphasis away from the bar trade towards other sources of income, in particular food.
“In the year, the gross profit from these other sources of income now represent over 50% of the total gross profit.”
The company added: “Despite the volatile market, sales in the year have improved resulting in increased profits. Within the estate freeholds continue to perform well and the company’s intention is to continue to acquire freehold properties.
“The company has the capacity to run a slightly bigger estate and will strive to acquire new freeholds, develop existing freeholds and take short leaseholds in order to meet its strategic objectives.”
During the year Chameleon decided not to renew the lease at the Enterprise Inns-owned Grey Hen in South Shields in line with its strategy of moving towards food and accommodation. It also took a lease on Thwaites’ Boat Yard in Preston, a destination food site.
Chameleon said no dividends would be paid for the year.
