Eclectic Bars is pressing on with actions to improve business as it continues to face a “challenging” period in its market of late-night bars and clubs.
It announced today that trading for the six months to December 28, which included the run-up to Christmas, was in line with a profits warning that it gave in November last year.
The company went on to warn that reduced trading levels experienced towards the end of that six-month period and over more recent weeks were likely to continue during the remainder of its financial year to June.
Chief executive Reuben Harley said: “Eclectic has some of the best locations and premium brands in the UK. Whilst this has been a challenging period for the company, I am confident that the actions we have taken have made Eclectic a stronger company which will continue to build value for our shareholders over the medium term.
“Our team have continued to work hard in a difficult trading environment and I’d like to take the opportunity to thank them for their continued hard work and dedication.”
Eclectic Bars’ venues include tiki bars Lola Lo, Japanese-themed Sakura and Fez and Po Na Na clubs as well as Lowlander and Embargo Republica in London and Coalition and Dirty Blonde in Brighton.
Over the six months, sales on continuing operations were up 11% at £12.3million and site earnings (EBITDA) on continuing operations were level with the previous year at £2.6million.
Company earnings (EBITDA) on continuing operations before adjusting items were down 15% to £1.1million.
Coalition and Manchester’s Lola Lo (pictured) both completed their first anniversary during the six-month period with combined cash-on-cash return for the first 12 months of more than 50%. After a relaunch in August, Embargo Republica in Chelsea is trading ahead of expectations.