Eclectic’s management team reports below on its performance for the year to end June 2013, continuing to develop and grow the group and seeking out new opportunities whilst delivering strong sales and EBITDA performance.
Eclectic Bars principal activity is the management and operation of late night bars and restaurants across the United Kingdom, carried out under the trade names of PoNaNa, Fez, Embargo 59, Sakura, Lola Lo and Madame Geisha. They predominantly target a mid- to upper market customer base of more sophisticated students midweek, and stylish 21 plus adults at weekends.
The team continues to search for suitable sites to further roll out its brands. With a good pipeline of potential opportunities and funding in place from Barclays Bank, Eclectic’s management will continue to look to acquire two to three sites a year, targeting a 30% EBITDA return on new sites and a 25% EBITDA return on existing sites which may be rebranded or refurbished.
Financials
The past year has seen another strong performance from the team at Eclectic, who have continued to grow turnover, for the twelve month period ended June 2013, with sales up 7% at £21.197 million (2012: £19.63 million); EBITDA before head office costs up 15% at £5.81 million (2012: £5.06 million); and company EBITDA was up 2% at £2.92 million (2012: £2.85 million).
The company’s investment, which is predominantly in the form of a secured loan, has a book value of £7.3 million (2012: £7.3 million), equating to 91 pence per share (2012 – 91 pence per share). The only other debt outstanding in Eclectic is a series of senior debt facilities from Barclays Bank plc which (net of cash) stood at £0.9 million as at the end of June 2013 (2012 – £1.5 million).
Operations
The past 12 months have seen another year of considerable activity with the acquisition of one new venue, some minor refits to the existing estate, and the signing of a contract in August 2012 to manage all the day-to-day operations of thirty-three businesses on behalf of PBR Leisure Limited. This contract, together with the new unit acquired in the year, took the total number of venues owned and operated from sixteen to fifty.
- The venues managed on behalf of PBR Leisure Limited include fourteen units trading as The Living Room, a leading premium bar and restaurant brand, and nineteen other bar, nightclub and hotel businesses across the United Kingdom. Eclectic has, along with day to day operations, been responsible for the restructure and refocusing of the business, and more recently has been assisting the PBR Leisure board with a number of strategic disposals including The Living Room business to Stonegate Pub Company.
- The management contract with PBR Leisure Limited came to an end in October 2013. The net income from this management contract during the year ended 30 June 2013 amounted to £650,000.
- Madame Geisha in Brighton was acquired in March 2013 and brings the total sites currently owned by the company to seventeen. This business is continuing to trade in its current format and is expected to undertake a refit in the next financial year.
- During the year, Reading and Manchester Sakura both had minor refits to create additional dance floor areas, which enable them, when required, to trade two different events concurrently.
- Eclectic continues to make regular capital investment across all of its estate, ensuring that high standards of customer experience continue to be met.
- The strong performance this year of Eclectic’s owned sites have been underpinned with quality service, strong product, table service (with over 80% of tables pre-booked at the weekends), strong music, and premium student nights throughout the weekdays. In addition the company has demonstrated its ability to run and operate a significantly larger estate whilst continuing to deliver increased sales and EBITDA.