Record revenue, profit and EBITDA confirm Deltic’s position as late night bars and clubs industry leader.
16th May 2016 – The Deltic Group, the UK’s largest operator of premium late night bars and clubs with 58 venues, is pleased to announce its fourth year of consecutive growth for the year ended 27 February 2016.
Deltic trades under a number of names including PRYZM, ATIK, Fiction, Cameo, Kuda, Vinyl, and the new Bar&Beyond brand. The group’s business model is to create memorable experiences for its consumers by offering a range of premium drinks, private booths, party packages and an entertainment led offering, all in exceptional venues.
- Strong underlying EBITDA growth of 16.8 percent to £13.4m
- Turnover up 8 percent to £101m
- PBT up to record £4.3m (2015 £3.7m)
- £3m investment in new Unit 7 club in Basildon-largest investment outside London in 10 years
- Successful £9m refurbishment of sites
- New banking facilities – £10m term loan and £5m revolving credit facility
Late night visitors on the rise
Pre-booked sales have risen by 175 percent across the estate in the financial period. This is supported by the business’s customer database, which enables sales teams to target customers based on historic engagement or expressed interest. Added to this, further investment was made in expanding sales teams across a number of venues.
Deltic has also successfully moved forward with its ongoing investment programme and growth strategy. On 2 February 2016 the group announced its most recent site acquisition – a planned £1.4m investment in the launch of a new PRYZM club in Birmingham. As of the end of 2015, over half of the estate had undergone major refurbishments, with all venues refreshed through investment in new fixtures and fittings.
Deltic now achieves 6.9 million visits a year to its 58 clubs and bars, reflecting the quality of its service and venue experience. There were strong performances throughout the UK from towns as diverse as Aberdeen, Leeds, Bristol and Exeter to Bournemouth, Romford and St Albans.
Big Night Out
The group has increased investment in music led entertainment, delivering popular acts for student nights and weekends alike. Across the last year, venues have benefitted by welcoming a host of celebrity DJ’s, running monthly events, comedy nights and the successful Smirnoff sponsored Big Night Out. The Big Night Out happens once a month at venues across the country. Clubs are transformed into something spectacular, whether it’s the lasers of Ibiza or the gymnasts from the circus.
Early evening concept roll out
The group is capturing earlier evening trade through successfully transforming some of the eight former Chicago Rock Café sites acquired in November 2014 into Deltic’s Bar&Beyond brand. These operate seven days a week and offer a compelling street food offering starting at 5pm. Bar&Beyond has been opened in Chelmsford and Stevenage and further openings are planned for later this year.
Working in the community
For many years Deltic has supported local communities in the areas in which it operates through its partnership with Echo Trust. Since it was established in 2002, the Echo Trust has raised more than £2.5 million. Of this, Deltic venues have raised over £70,000 in the last year, 100 per cent of which has been donated to local children’s charities.
Deltic Group’s success is based on the high quality of its employees. It prides itself on attracting people from a wide variety of backgrounds. In the last year the group employed over 90 full time starters of which 26 were promoted into management positions in roles including front of house, bar management, marketing and finance. Each newly appointed manager is given a tailored career progression programme rotating across the various departments of the business. The company also has an outstanding track record in developing management internally, with many senior positions filled with people who started off on the club floor. Indeed, this was how Peter Marks began his career after leaving university.
The group’s strategy is focussed on growth:
- Refurbishment of under-invested sites to maintain the premium feel of venues and grow admissions
- Recruitment of sales teams in key venues to drive pre-booked sales
- Further diversification into the bar market with new Bar&Beyond giving access to early evening trade
- Growth through acquisition of selective sites meeting the board’s strict criteria for venues
The late night sector has faced a number of challenges historically.
However, Deltic believes that a major factor in the performance of the sector is the under-invested nature of late night properties and therefore a key facet of the business’s future improved performance will arise from re-investment in the estate. Deltic is ideally positioned to exploit this opportunity.
In addition, Deltic has embraced the opportunities offered by engaging with its customers via social media including its 1.2 million followers on Facebook.
The group’s trading performance continues to improve and there will be further improvements following the ongoing refurbishment programme. In 2016 the business opens PRYZM Birmingham as a new site and plan further investments in Nottingham, Bournemouth and Colchester.
Commenting on the results, Deltic Group’s Chief Executive Peter Marks said:
“It is very heartening to report these excellent results which reflect the hard work, capital investment and imagination of everyone at Deltic.
‘‘We now have the ideal platform to be the dominant late night player in each of our 58 clubs and bars. Our ability to respond to customer trends, backed by our financial firepower, gives me confidence in Deltic Group making further progress over the coming year.’’