Profits and like-for-like sales are rising strongly at bar and restaurant group Drake & Morgan as it prepares to open new sites in London and Edinburgh.
Pre-tax profit rose from £139,000 to £1.6m in the year to March 29, it announced today, alongside a 20% increase in turnover to 24.6m. Adjusted earnings (EBITDA) increased 28% to £3.2m.
The group, which is backed by private equity firm Bowmark Capital, also reported that trading has continued positively into the new financial year, with like-for-like sales for the four months to August 2 up 5.3%.
Drake & Morgan opened its eighth site, The Refinery (pictured) at Regent’s Place in London, in March which it said was “performing ahead of the business case”.
It is scheduled to open its latest bar and restaurant, called Drake and Morgan, at King’s Cross in London in late September, which will be its largest site to date at 14,000 square feet.
It added that it was “actively pursuing” further sites, predominantly in London, and has a strong pipeline in place for new sites in London and other UK locations. It has already confirmed plans for its first site outside of London as part of the St Andrew Square development in Edinburgh.
Finance director James Sherrington said: “This is a very positive set of numbers, with turnover, EBITDA and profit before tax all in strong growth.
“Our most recent investments are performing well, whilst the core business continues to grow. The group has a strong balance sheet and we have the financial and operational capacity to accelerate our new opening pipeline over the next year.”