The Deltic Group, the UK’s largest club and bar operator, has announced another sales increase on top of three consecutive years of growth.
It reported today that sales rose by 15.5% in the 26 weeks to August 29 while like-for-like sales, excluding new openings, were up 7.5%.
Deltic has also completed banking arrangements with HSBC which has agreed to provide a £10m term loan and £5m revolving credit facility, which will be used to partially repay shareholder loans, invest in existing sites and fund future acquisitions.
The group is poised to make the single biggest investment in a UK regional club for 10 years, spending £3m in Basildon in Essex to create a new triple-scene club with a roof terrace bar.
It follows continuing investments in refurbishments, with five already completed this year in Camberley in Surrey, Andover in Hampshire, Ipswich in Suffolk, Exeter in Devon, and Oxford.
About £5m is earmarked for five additional sites scheduled to open before Christmas, which includes its first Bar & Beyond bar concept in Chelmsford in Essex and venues in Canterbury in Kent, Windsor in Berkshire, and Tamworth in Staffordshire as well as Basildon.
As part of a tactical acquisition strategy, the company last week announced that it had expanded its 57-strong portfolio with the addition of Play, a 1,000-capacity club in Hereford.
Deltic chief executive Peter Marks said: “There’s been plenty of speculation about the health of the UK nightclub sector. Our consistently strong performance is testament to the fact that there is still huge consumer appetite for a big night-out experience – something that only clubs can deliver.
“The fact that we’ve secured new banking facilities with HSBC and our continued sales growth, proves there’s still real upside in the sector for strong operators with well-invested venues.”