Cost-cutting exercises and its exit from the online gaming market will increase margins at Sports Cafe with trade remaining stable during 2007, the bar operator said today.
Speaking at Annual General Meeting (AGM) for the group, Chris Akers, deputy chairman, said that while total sales for the first quarter of 2007 were similar to those in 2006 he expected both gross margins and operating profits to increase.
He added that coming sporting events, including the Rugby World Cup in France in September, would “provide the basis for a strong second half to the year”.
The revision of strategy for Sports Cafe will also see an expansion of the number of sites in the UK – a ninth site is planned to open in Cardiff in early 2008 – as well as an eye on “organic and acquisitive growth”.
Sports Cafe finished 2006 weakly with turnover below expectations as well as sustaining its operating loss.
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By Christopher Walton
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