Eclectic reports ‘disappointing' sales at new sites
Eclectic Bar Group, which runs 20 bars under a variety of brands including the Lola Lo format, has reported "disappointing" trading at its newest openings, as it announced a review of its estate.
Revealing its interim results for the half year to 28 December 2014, Eclectic said sales on continuing operations were up 11% at £12.3m. However site EBITDA on continuing operations was flat, at £2.6m.
Eclectic said that two of its most recent openings, Lola Lo in Derby, and Dirty Blonde in Brighton, as well as poor trading in Bournemouth had impacted its current results period.
It blamed reduced numbers of students and more competition being seen across a number of its sessions and venues for the performance.
As a result, Eclectic has launched a series of actions to address the problems including developing its food offer, focussing on profitable trading nights, a review of head office costs, and a review of its estate.
However, some sites did perform better, including Lowlander in Covent Garden, and Coalition in Brighton and Lola Lo in Manchester, which achieved combined cash on cash returns in excess of 50% for their first 12 months of trading.
Reuben Harley, chief executive of Eclectic said: "Eclectic has some of the best locations and premium brands in the UK. Whilst this has been a challenging period for the company, I am confident that the actions we have taken have made Eclectic a stronger company which will continue to build value for our shareholders over the medium term.
"Our team have continued to work hard in a difficult trading environment and I'd like to take the opportunity to thank them for their continued hard work and dedication."
