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Novus to invest £20 million despite sales fall

By James Russell: Novus to invest £20 million despite sales fall

April 1, 2014

The Daily Telegraph reports that Novus Leisure, the nightclub and bar operator behind the Tiger Tiger brand, will invest £20m to refresh its 47 sites over the next two years, after sales fell 3.1pc last year.

Private equity group LGV Capital and Hutton Collins bought Novus Leisure in July 2012 for £100m but the group suffered a 3.1pc fall in like-for-like sales in the year to 30 June 2013, revenues suffering during the Olympics.

Accounts for Novus’s parent company, Survivor Group Holdings, show the bar and night club operator generated sales of £116m in the period to June 30 and made a loss on ordinary activities before taxation of £40m.

The company stated:

“There has been much change at Novus both during the year to June 2013 and following the year end. The statutory accounts of Novus to June 2013 recognise these changes and a difficult trading period for the company.

“There is now a totally new management team in place that has restructured the business and has begun implementing a strategy for growth through investment in the prime sites that the business operates. The investment strategy for the business will see circa £20m invested in the group’s sites over the next 2 years.”

Novus bought 17 Balls Brothers bars out of administration in 2011, and last year Tim Cullum, previously of TGI Friday’s, took over from long-standing chief executive Steve Richards, who oversaw the sale to LGV and Hutton Collins.

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