Optimistic outlook at growing Eclectic

Lola Lo in LincolnThe management of bar operator Eclectic are optimistic about the coming year after today reporting increases in sales and earnings.

The company, whose brands include Lola Lo, Sakura and Po Na Na, grew EBITDA (earnings before interest, tax, depreciation and amortisation) by 17 per cent to £4.8million and sales by 26 per cent to £19.6million in the year to the end of June 2012.

Since its year end, Eclectic has also taken on the management contract to run 33 restaurants, bars and nightclubs on behalf of PBR Leisure, including 14-strong chain The Living Room, bringing the number of sites it operates up to 49.

In a statement today, Eclectic’s owners Avanti Capital said: “Management are optimistic about the upcoming year, with like-for-like sites expected to continue to grow over prior years and the full effect of new sites and refits continuing to contribute to the company’s performance.”

They added that they were especially pleased with the results as they were achieved despite closures during the year as part of Eclectic’s on-going programme of site refits and new openings.

Over the past 15 months, Eclectic has acquired two new venues and refitted three. These included the conversion of Po Na Na in Edinburgh to its Lola Lo tiki concept in August last year – increasing sales by 23 per cent in its first 11 months compared to the previous year.

The opening of Lola Lo in Reading a year ago, including a large outside space, has turned out to be the site with the highest annual sales within the company to date.

Its Sakura bar in Lincoln was revamped into Eclectic’s eighth Lola Lo in May this year (pictured). “This refit was completed in less than three weeks and now completes the refurbishment programme to Lola Lo from within the existing estate,” Avanti Capital added.

“The strong performance of the new opening and refit programmes for the year has been underpinned with quality service, strong product, table service, with over 80 per cent of tables pre-booked at the weekends, strong music and premium student nights throughout the week days.

“The management team continues to search for suitable sites to further roll out the Sakura and Lola Lo brands.”

In September this year, new funding was put in place with Barclays Bank to enable the business to acquire three to four more sites a year. The additional banking facilities comprise a new three-year revolving loan facility of £1.5million which is available for both the refit of existing sites and new acquisitions.

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