Luminar has announced it is rebranding as it seeks to develop a late night bar business to run alongside its existing nightclub estate.

The company, which this morning reported an 18% increase in profits for the 53 weeks until 28 February, is to become the Deltic Group with the Chicago Leisure sites being converted to a new concept, Bar & Beyond. The first site under the new model is to open in Chelmsford later this year with £3m being invested in transforming the other sites.

Chief executive Peter Marks told M&C Report the Bar & Beyond concept would do “exactly what the name suggests”, adding: “The first third will be a bar, probably opening from 7pm or 6pm Thursday to Sunday. It will serve food as part of its offer. The back third will be a late night experience with party music but not cheesy.” He added; “We wouldn’t exclude daytime opening, if it was a retail park location for example.”

He said the acquisition of Chicago Leisure at the end of last year had signalled a ‘change of direction for the group’.

He said: “At the time of acquisition, the board’s focus was on stabilising The Luminar Group and developing a clear strategy for growth. The company has now delivered its third year of growth, with its strategic focus on investing in its estate, people and entertainment to create great nights out for its customers, delivering strong results.

“The acquisition of eight sites from Chicago Leisure in 2014 marked a change in direction, with plans to develop a late night bar business to complement our existing nightclub offer. As such, the time is now right to change the company’s name to reflect its future strategy.”

The board chose the name Deltic (from the Greek letter Delta associated with Change) to signify change.

It said: “The company has already undergone significant change to refocus its business and the move to Deltic signifies its commitment to create the UK’s premier late night bar and club business, concentrating on new concepts, investing in its estate and its people and creating compelling ‘Big Night Outs’.”

The company, which employs 3,000 people and operates 58 nightclubs and bars nationwide, delivered a profit before tax of £3.7m (2014: £3.4m) and an EBITDA of £11.4m (2014: £9.7m) in the financial year.

Over the year the company invested over £8.5m in its estate with major refurbishments at PRYZM in Leeds, Brighton and Cardiff, Fiction in Swansea and Hanley, and Cameo in Ashford and Preston. Future plans include a £3m refurbishment of its Basildon nightclub and further investments in Ipswich, Oxford, Andover and Camberley.

The company’s spend on its entertainment strategy was up 50% on 2014 and included partnerships with premier comedy clubs, Glee and Manford’s, a Student Big Night Out and a tour just announced with Jess Glynne.

Marks said: “The Deltic Group is setting new standards in late night bars and clubs with well invested, stylish venues, high levels of customer service and unrivalled entertainment to build our profile as the UK’s largest late night bar and club operator.”