Deltic sees £1.5m loss due to a "warm and quiet summer"
Late-night bar and club operator Deltic Group has reported a £1.48m loss before tax and a 2.3% drop in EBITDA to £13.3m due to "local competition and a warm and therefore quieter summer" last year.
In order to combat the quieter period, Deltic introduced a number of wet-led promotions to attract customers which saw a 6.9% increase in admissions during the 52 weeks to 25 February 2017.
Within the same year, revenue increased by 1.4% to £102.2m (2016: £100.8m). This is credited to a rise in pre-booked sales (47%) across the estate due to an investment in new sales teams.
Deltic currently trades under Pryzm, Vinyl, Fiction, Atik and new concept Bar&Beyond. During the financial period, three new Bar&Beyond sites were opened across the UK.
By the end of 2016, three quarters of Deltic's sites had undergone major refurbishment with many being rebranded. The company also disposed of two freeholds not being used for trade in Blackburn and Luton for £160,000 (£60,000 loss) and £1.3m (£74,000 profit) respectively.
Alex Millingon, director of Deltic, said: "The late-night sector has faced a number of challenges historically which we believe is now in a better place. Much of the oversupply has come out of the market, there are no new regulatory issues that can be foreseen and Deltic, along with other town centre operators are investing in their offerings and having confidence again. However, the upcoming increases in business rates, energy levies, changes in alcohol duties and the introduction of the apprenticeship levy will all impose greater cost pressures in the upcoming 12 months."
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