Bar operator Arc Inspirations recorded increased profits and like-for-like sales in what its chief executive has described as the ‘most successful year in the company’s history’.
The Leeds-based business, which is behind the Manahatta and Banyan Bar & Kitchen and BOX brands, increased turnover by 16.7 per cent from £23.3m to £27.2m in the year to March 31 2019.
Most of this growth was due to new sites however like for like sales lifted by 1.1 per cent, showing existing bars performed well in what the firm said ‘continues to be very competitive and challenging market conditions’.
Adjusted EBITDA (earnings before interest, tax, depreciation and amortisation) rose by 15 per cent (from £3.2m to £3.7m).
The business invested over £7.5m in opening five new sites in Leeds, Manchester and Newcastle during the period, which also marked its first move into the North East.
Arc said its strategy of opening sites in ‘clusters’, with several venues located in close proximity and complementary to each other, each targeted at a different customer demographic, was driving growth.
The model is proving successful in Leeds city centre, it added, with all three brands successfully operating within 100 yards of each other and each site enjoying sales growth.
Across the year, the group disposed of two sites as part of its strategy to manage its estate with a forward focus on its three key growth brands.
The group has invested in its head office team and business systems to support the current year openings as well as position the business to open more sites in future.
Arc Inspirations said it plans to expand into new locations across the North and Midlands in 2020 and beyond.
Chief executive Martin Wolstencroft said: “We have enjoyed arguably our most successful year in the company’s history and believe we are now operating at the very peak of the sector, delivering through our continued focus on our people, brands and guest experience.”