Jacobs Media Group is honoured to be the recipient of the 2020 Queen's Award for Enterprise.

Ultimate may face bidders

19 January 2006
Ultimate may face bidders

Bar and nightclub operator Ultimate Leisure may soon face a takeover just a month after failing to buy rival Inventive Leisure.

Ultimate issued a profits warning at the end of last week stating that trading over the important Christmas and New Year period and into January "has proved to be very difficult".

The company blamed the lack of historic investment in its bars which meant it was unable to compete effectively. Its nightclub business also suffered due to the opening of "significant new competition".

Overall, this will mean that the second half of its year to 30 June will see a "material shortfall in sales" leading to profits that are "substantially below current market expectations".

As if in anticipation of a bidding war, the trading update from Ultimate said that a revaluation of its assets had put a price of around £80m on the group rather than the £66m value of its estate that is carried in its books.

Ultimate's attempt to acquire vodka bar chain Inventive failed after private equity firm Alchemy Partners secured more than half of its shares just before Christmas.

Now that Ultimate itself is a potential target, Regent Inns is tipped as a likely predator. Regent had also been interested in Inventive.

By Andrew Sangster

Get your copy of Caterer and Hotelkeeper every week - click here to subscribe and save 25%.

Sudoku Join the craze and play Sudoku online!
The Caterer Breakfast Briefing Email

Start the working day with The Caterer’s free breakfast briefing email

Sign Up and manage your preferences below

Check mark icon
Thank you

You have successfully signed up for the Caterer Breakfast Briefing Email and will hear from us soon!

Jacobs Media Group is honoured to be the recipient of the 2020 Queen's Award for Enterprise.

The highest official awards for UK businesses since being established by royal warrant in 1965. Read more.

close

Ad Blocker detected

We have noticed you are using an adblocker and – although we support freedom of choice – we would like to ask you to enable ads on our site. They are an important revenue source which supports free access of our website's content, especially during the COVID-19 crisis.

trade tracker pixel tracking