Eclectic Bars to continue expansion as sales increase

sakura ManchesterTurnover and earnings have increased at late-night bar operator Eclectic Bars as it continues to seek expansion through acquiring two to three sites a year.

Majority shareholder Avanti Capital today reported that the bar business grew sales by 7% to £21.197million over the 12 months to June 2013 while earnings (EBITDA) were up 2% to £2.92million.

Over the year, Eclectic acquired Madame Geisha in Brighton, increasing the size of its estate to 17, which it plans to redevelop into new cocktail bar and restaurant brand Dirty Blonde in 2014.

Eclectic also managed 33 sites on behalf of PBR Leisure, including The Living Room, until earlier this month when PBR Leisure sold The Living Room bars to Stonegate Pub Company. The net income from the management contract during the financial year amounted to £650,000.

Eclectic’s other businesses comprise bars and clubs operating as Po Na Na, Fez, Sakura and Lola Lo as well as Embargo 59 in Chelsea, London and Madame Geisha. Since the year end, it has acquired Brighton club Coalition.

Investments during the financial year included minor refits of Sakura in Reading and Manchester (pictured) that created additional dance floor areas so the venues can trade two different events concurrently.

Other achievements over the year include pre-bookings, with over 80% of tables now pre-booked at weekends.

Avanti Capital said the team continued to search for suitable sites to further roll out its brands and looked to acquire two to three sites a year, supported by funding in place from Barclays Bank.

It has set itself the target of achieving a 30% EBITDA return on new sites and a 25% EBITDA return on existing sites which may be rebranded or refurbished.

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