Yellowhammer Bars, the nightclub and bar operator, returned to profit in the year to 28 February 2011, after its owner, distressed situations fund Agilo, wrote off almost £6.5m in loans. Profit before tax was £4,080,866 against a loss of £3,064,885 in the previous year. Loans owed to Agilo were written off following a restructure of Yellowhammer’s debts. Yellowhammer’s interest bill reduced significantly after the loans write off, from £1,908,056 to £1,570,956. Company turnover fell 13% to £24,952,298, with Yellowhammer blaming tough trading conditions on the high street. Operating loss was £702,017, down from £1,162,378 in 2010. Yellowhammer said: “In line with the current economic climate we have seen some changes to spending practice on the high street. In general, consumer spending has hit the sector quite hard and we report a 6% decline in year-on-year sale outlet sales. “The late night sector is experiencing the impact of less cash in the economy alongside continued competition for market share.” The company reported a loss on sales of fixed assets of £129,911 after the closure of two bars in the year. Yellowhammer made no acquisitions in the period but disposed of one site, Groove Wrexham, in its 20-strong Company Time business, and two in its Sports Cafe 2008 arm, both Sports Cafe bars in Leeds and Glasgow. Gross profit margin fell from 77% to 76% in the period. Directors recommended that no dividend be paid. James Spragg resigned as chief executive on 24 February this year after nearly three years in the role. Voltante Management, a four-strong management company, was awarded a contract to run the company by Agilo in March.