Following three years of consecutive growth, the UK’s largest clubs and bar operator, The Deltic Group has announced a sales increase of 15.5% in the 26 weeks to 29 August, with like for like sales up 7.5%.
Peter Marks, chief executive of The Deltic Group comments: “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.”
Deltic’s refurbishment programme continues to deliver results with the company poised to make the single biggest investment in a UK regional club for ten years. The £3m investment in Basildon will create a new triple scene club with a roof terrace bar that will offer the latest in entertainment and service standards.
In addition, Deltic has already completed five refurbishments this year (Camberley, Andover, Ipswich, Exeter and Oxford), with circa £5m earmarked for five additional sites scheduled to open before Christmas, which in addition to Basildon include its first Bar & Beyond concept in Chelmsford and venues in Canterbury, Windsor and Tamworth.
As part of its tactical acquisition strategy, the company has just expanded its 57-strong portfolio with the addition of Play, a 1,000 capacity club in Hereford.
Deltic has also completed banking arrangements with HSBC a new partner to the Group, 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 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,” concluded Peter.