Sales and earnings are up at Eclectic Bar Group as it continues its strategy of steady expansion and a new focus on increasing revenue from food.
It today reported a 14.1% rise in earnings (EBITDA) on continuing operations before exceptional costs to £2.6million for the year to June 29 alongside a 11.7% increase in revenue on continuing operations to £23million.
The group now has 23 sites, including 11 operating as Lola Lo as well as Madame Geisha in Brighton and Sakura in Reading, Manchester and Bournemouth.
Chief executive Reuben Harley (pictured) said Eclectic planned to add two to three new sites per year and currently had a strong pipeline in place. “It is anticipated that the majority of new sites will be in major cities and towns where there is also a university population.”
The company will also have a stronger focus over the coming year to further increase food sales “where the opportunity arises”, building on the success of food offerings such as Island Grill at its Lola Lo bars.
It also plans a national roll-out of the Lowlander bar and brasserie concept that it acquired in Covent Garden, London, this year, drawing on its expertise in food.
Eclectic has previously announced plans to open two new Lola Lo bars at an undisclosed site in Liverpool and in a two-storey 6,500 sq ft site in West Street, Sheffield, before June next year.
Chairman Jim Fallon said: “The premium bar market remains fragmented and continues to present the group with a significant opportunity to grow, albeit in a measured and prudent way.
“The group’s focus will continue to be providing premium bars for young, sophisticated professionals and students who are seeking added value through superior service and a high-quality experience. We remain focused on delivering the most aspirational venue available in any given location.”
After raising funds through a listing on the Stock Exchange’s Alternative Investment Market in November last year, the group is financing investment and acquisitions through cash generated from operating activities as well as extending its revolving credit facility with Barclays Bank from £1.5million to £5million.
Eclectic’s other sites include Po Na Na clubs in Bath and Wimbledon, south-west London, Fez Clubs in Cambridge and Putney, south-west London, Coalition in Brighton and the newly refurbished Embargo Republica in Chelsea, London.