The operator behind a major chain of UK nightclubs and bars has hailed an increase in full-year profits.
Deltic Group, which was formerly known as Luminar Group, operates 58 venues across the UK including Liquid, Dundee’s largest nightclub.
New accounts published at Companies House show the group achieved sales of just over £100 million in the 364-day period to February 27.
The figure compares to revenues of £93.3m in the previous financial year which was a full-week longer at 371 days.
Pre-tax profits from the group’s activities also improved from £3.65m in 2015 to £4.27m in the past 12 months.
After tax, Deltic made £3.62m in 2016, up from £2.71m in the prior year period.
In his directors report, Russell Margerrison said the economic outlook continues to be “somewhat challenging” but he expressed confidence for the year ahead.
He said the group had adequate financial resources – it obtained a £10m term loan and a £5m revolving credit facility during the year – and at year-end had undrawn facilities of £5m.
He stated that funding from the company’s ultimate parent group Ranimul 1 Ltd is repayable on demand, although such a move would require the approval of the bank and would not be forthcoming if it adversely affected trade.
Mr Margerrison said the company was seeing the benefit of a rolling investment programme in its sites.
“The board’s view is that fundamental to running a successful late night operation is the investment into both the estate, its management and the customer experience,” he said.
“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 life of three years for its venues, with the board requiring a two-year payback for any capital projects to ensure sufficient profitability is generated from any investments.
“By the end of 2015 just over half of the estate has undergone major refurbishment, 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 staff to target customer leaders based on historic engagement or interest expressed by the customers. As a result, pre-booked sales have risen by 175% across the estate in the financial period..”