Audited Annual Results for the year ended 25 February 2017

Resilient performance provides strong platform for growth

24 August 2017 – The Deltic Group, the UK’s largest operator of premium late night bars and clubs, sets out its results for the year to 25 February 2017, reflecting the fundamental strength of the business and providing a strong platform for growth.

The Group exhibited a resilient performance with a strong platform for growth:

  • The overall trading position of the Group has been steady with 1.4% growth in turnover to £102.2m
  • Underlying EBITDA in line with the prior year at £13.3m, representing a strong performance over the period
  • Admissions have grown by 6.8%
  • Pre-booked sales have risen by 47%

Click HERE to Download FY17 Financial Statements

 

Business review

The view of the Board is that fundamental to running a successful late night operation is the investment in the estate, including its management and staff and the consumer experience.  Four years ago the average age of the estate since refurbishment was in excess of six years which in the Board’s opinion will have contributed to a declining trading performance.  The Group is targeting an average payback time of two years for investment in its venues, with the Board requiring a minimum 40% ROI for any capital projects on the existing estate and 33% ROI on new developments to ensure sufficient profitability is generated from any investments.  By the end of 2016 three quarters of the estate had undergone major refurbishment, many having been rebranded, with all units refreshed with investment in new fixtures and fittings.

Local managers are given autonomy for addressing performance with support from the centre, and during the year further investment was made in sales teams in a number of venues, supported by the customer data that the Group captures to promote pre-booked sales.  This enables the sales staff to target customer leads based on historic engagement or interest expressed by the customers.  As a result, pre-booked sales have risen by 47% across the estate in the financial period.  The Group has also increased investment in music led entertainment, delivering popular and on trend acts for student nights and weekends alike.

The Group has opened three more of its bar concept, Bar&Beyond during the period, operating seven days a week and capturing earlier evening trade with an improved food offering.  Further openings have been approved by the Board for the subsequent period.

Outlook

The trading performance continues to improve and there will be further improvements in the future from the continued refurbishment programme. In 2017 we have already opened Kings Lynn Bar&Beyond, Portsmouth PRYZM, and ATIKs in Edinburgh and Gloucester with further investments planned in Hull, Wrexham, Uxbridge and Bournemouth.

The late night sector has faced a number of challenges historically, including the impact of student fees. Despite this, Deltic has seen its admissions grow by 6.8% over the past 12 months demonstrating that there is a continued appetite for a late night out. The Board believes a major factor in the performance of the sector is the under-invested nature of the properties and therefore a key facet of future improved performance of the business will arise from re-investment in the estate. 

28 February 2016-

 25 February 2017

000

1 March 2015-

27 February 2016

000

Admissions 7,215 6,752
Turnover £102,195 £100,772
Underlying operating profit £5,573 £8,558
Underlying EBITDA* £13,259 £13,574

*Earnings before interest, tax, depreciation and amortisation adjusted to remove non-underlying items, one off venue launch costs and any one-off profits or losses on sales of assets.

Peter Marks, Chief Executive of The Deltic Group said “FY17 was another exciting and successful year for Deltic. Progress was underpinned by the strength of the Deltic estate, its quality brands, and our colleagues’ steadfast dedication to delivering exceptional customer experience. The Board remains confident that we are well placed to build on this momentum of the business.”

“As a leader in the late night sector, with a strong balance sheet, we were able to continue to invest in a range of long term growth opportunities. The current year has started well, with LFL sales increasing 3.85%, and I am confident that the initiatives we have in place will enable us to respond even more effectively to customer trends”

The information in this announcement, which was approved by the Board of Directors on 24 August 2017, does not comprise statutory accounts within the meaning of Section 434 of the Companies Act 2006. Statutory accounts for the year ended 25 February 2017, which contain an unqualified audit report under Section 495 of the Companies Act 2006 (which do not make any statements under Section 498 of the Companies Act 2006) will be delivered to the Registrar of Companies in accordance with Section 441 of the Companies Act 2006.

A copy of the full audited results will be available on Deltic’s website.

 

-Ends-

Enquiries

Hudson Sandler                                                                   

Andrew Hayes, Pema Seely or Lucy Wollam at deltic@hudsonsandler.com or 020 7796 4133

Our brands include: 

  • Bar&Beyond
  • ATIK
  • PRYZM
  • Fiction
  • Cameo
  • Kuda
  • Vinyl Retro Bar

Notes to Editors 

  • Deltic Group is UK’s largest operator for late night bars and clubs with 57 clubs and bars throughout the UK, from Aberdeen to Plymouth
  • Employs 3000 people
  • The Group has a strategic focus on investing in its estate, people and entertainment to create great nights out for its customers
  • The Group is dedicated to being a best in class responsible operator. In addition, it runs the “Echo Trust’’ charity fund, which regularly donates to children’s hospitals and schools in the local areas surrounding its venues
  • The company was recognised by the industry when it won a hat-trick of awards at The Publican Awards 2016: Best Late Night Operator, Responsible Retailer of the Year and Best Pub Operations Team
  • Deltic is constantly pioneering new concepts including a broader choice of music rooms. PRYZM Kingston was the first to offer a female only area with a pamper room and opportunity to catch up away from the main dance floor and has also trialled a private dance floor concept at its Leeds and Brighton sites
  • Halloween is Deltic’s busiest night of the year with over 90,000 customers last year