30th Sep 2015 09:56
LONDON (Alliance News) - Eclectic Bar Group PLC on Wednesday reported a significantly wider pretax loss in its recently-ended financial year, as it booked impairment charges and was hit by changes in consumer behaviour, causing some of its bars to underperform.
Eclectic, which runs bars for students and young professionals, said its pretax loss in the year ended June 28 widened to GBP6.2 million from GBP510,000 the year before, as revenue fell to GBP22.3 million from GBP22.7 million.
Eclectic said that its loss included the impairment of fixed assets relating to underperforming sites and a goodwill charge, and that earnings were also hit by changes in student behaviour - meaning less drinking - intense competition in a number of its key trading towns, and disappointing performances from its Lola Lo Derby and Brighton Dirty Blonde bars.
It added that it has reduced costs at the head office, closed non-profitable nights, and is focusing on developing its food offer and rationalising its estate in response to the challenges it has faced.
"Much progress has been made in re-aligning the group for today's marketplace. The management team are taking the requisite steps to create a firm foundation for the future. Fundamentally Eclectic is a good company with a robust business model and an attractive portfolio of sites," Chairman Luke Johnson said in a statement.
Shares in Eclectic were untraded on Wednesday, last quoted at 65.00 pence.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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