The operator of bar brands Banyan, BOX and Manahatta plans to open three new Manahatta cocktail bars in Sheffield, Newcastle and Nottingham; and two new BOX sports bars in Nottingham and Birmingham.

It follows £19m investment by BGF, which paved the way for a doubling of the business over the next three-to-five years.

Leeds-based Arc, which posted record group sales of £38.9m and underlying profits of £7.5m in its recently filed accounts at Companies House for the 12 months to March 31, 2022, said it had had an ‘exceptionally-strong’ recovery from Covid disruption.

Arc Inspirations, which is behind the Banyan, BOX and Manahatta brands, is to open five new sites, including a Manahatta cocktail bar in Sheffield, creating 500 jobs. Picture: Luke Musharbash

Co-founder and chief executive Martin Wolstencroft said: “This was an exceptional and transformational year for our company. We started it with significant restrictions still in place during the first quarter, and we ended it by posting record sales and profits, concluding a new growth partnership with BGF, and being awarded two industry ‘Oscars’ – for best company and best operations team.

“This is a testament to our team and culture. We are now able to contemplate a year without any trading restrictions for the first time since 2019. While clearly challenges remain, the business is extremely well-positioned with a clear growth plan, an exceptional pipeline of new sites, strong customer brands and two new strategic partnerships, which when combined will enable the business to capitalise on market opportunities over the next five years.”

Mr Wolstencroft said the company’s strong momentum has continued into the new financial period, with like-for-like sales in the first quarter up 19 per cent compared with the same period prior to Covid (April-June, 2019). It expects to produce a further record year of sales and profit to March 2023.

During the year, as part of its on-going investment, Arc appointed the first ever people and culture director to its board. Nazareen Johnson joined the business from retailer Pets at Home in August 2021.

Two key strategic partnerships were signed during the year. Firstly, Arc concluded a new banking agreement with HSBC, including a separate £5m facility for capital investment. Then, in March this year, it agreed a deal with BGF, which saw £19m injected into the business in return for a minority stake.

It also opened two new venues; a Manahatta in Temple Street, Birmingham, its first site in the Midlands, and a BOX in Deansgate, Manchester.

Manahatta owner Arc Inspirations unveils biggest ever bar opening programme, creating 500 new jobs, after record profits