Premium Bars and Restaurants (PBR) has seen full-year losses rocket as the economic downturn continues to bite, the bar, restaurant and nightclub operator announced today.
While revenue for the year to June 30 increased 79.8% to £66m - following the acquisition of The Living Room and Bel and the Dragon – like-for-like sales fell 5% due to a fall in drink and door income.
PBR extended pre-tax losses to £21.4m from losses of £2.5m last year as impairment charges – the devaluation of fixed assets such as property - jumped by around £16m.
The group - formerly the nightclub focused Ultimate Leisure - said the new financial year will continue to be challenging, as it expects adverse market conditions to continue for some time to come.
Like-for-like sales for the first quarter of the financial year are down 7.4% but in line with expectations.
PBR also announced that chairman Mark Jones has given 12 month notice of his intention to leave the company and that it is “in negotiation with its bankers” about the renewal of its borrowing facilities.
Mark Brumby, leisure analyst at Blue Oar Securities, said the newly branded company’s focus on food saved it from even worse results.
“Had not PBR diversified into food-led pubs and bars, the group may have been reporting materially worse numbers but, even as it is, the wider market has proven to be extremely difficult,” he said.
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By Daniel Thomas
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