Capital Bars to sell UK restaurants

Capital Bars is to sell its UK bar-restaurants to concentrate on its restaurants and hotels in Dublin.

The group, which last year changed its name from Break for the Border, today reported an operating loss of £407,000 in its UK operations during the six months to 3 October 1999. This compares with a loss of £29,000 for the same period in 1998.

Turnover in the UK during the half-year stood at £3.4m, whereas in Ireland it was £5.2m.

Total loss before tax was £163,000, against £30,000 in 1998.

Chairman Robert Gunlack blamed the company's difficulties on tough market conditions.

He said: "The first half of the year was a difficult trading period for our London units, which suffered from increased competition. Trading at our Peterborough venue has improved. However, the performance at our Leeds venue was disappointing."

Like-for-like sales in London since 3 October have continued at 9% below the comparable period.

Capital Bars has four bar/restaurants in the UK and eight in Dublin.

In September it bought six bar/restaurants and two hotels in Dublin for £14.6m. Two further bars and a hotel are being developed in the Irish capital and are due to open early this year.

In Ireland, the group's operating profit slipped to £914,000 last year, compared to £988,000 the previous year.

Gunlack said: "As a result of these factors, total bar and restaurant operating profit for the period was £507,000, which compares with £959,000 in the comparable period last year."