Capital to focus on Dublin

Capital Bars has decided to sell its UK restaurants so that it can concentrate on its restaurants and hotels in Dublin.

The group, which last year changed its name from Break for the Border, announced its decision while reporting increased interim pre-tax losses of £163,000 last year, from £30,000 in 1998.

The group 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 scheduled to open early this year.

In the six months to 3 October 1999 Capital Bars reported an operating loss of £407,000 in its UK properties. This compares with a loss of £29,000 for the same period in 1998. Sales fell from £9.01m to £8.61m - the UK was responsible for £3.4m, while Ireland contributed £5.21m.

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

"The first half of the year was a difficult trading period for our London units, which have suffered from increased competition," he said.