Ultimate grim about short-term prospects

Ultimate Leisure has delivered a grim prognosis of the future, warning that profits look likely to take a hit as the business feels the pinch of weaker consumer spending.

The Newcastle-based bar, hotel and nightclub operator said the downturn in trade meant turnover for the year to 30 June would be inline with last year's and profit would be not less than £8.3m (2004: £8.9m).

Short-term opportunities for growth through new site acquisitions remain limited, and Ultimate instead intends to refocus its capital expenditure on sprucing up its existing estate.

Ultimate warned that conditions looked set to prevail and combined with over capacity in the sector could result in profit in 2006 being lower still.

It is due to release its preliminary results for the year in late September.

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