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Caterer & Hotelkeeper Magazine

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Urbium bounces back after summer slide

Jessica Gunn
Thursday 25 September 2003 15:21
The summer heat wave and the extended closure of the Central line on the London Underground have compounded to knock profits at restaurant and late-night bar and club operator Urbium.

The group admitted like-for-like sales in the 11 weeks to 14 September fell 5%, although since then sales have again begun to pick up to normal seasonal levels, according to chairman John Conlan. The summer slowdown is expected to hit Urbium's end-of-year figures by 2-3%.

Conlan played down the dip in sales, saying: "The majority of the group's profits are generated in the second half, with December the key trading period."

Overall, the outlook for the group remains upbeat, however, with sales for the six months to 29 June up 26% to £31.2m (£24.9m) and pre-tax profits up to £2.5m from a loss of £1.5m the previous year.

A rise in Urbium's operating profit - up 27% to £3.8m (£3m) - came from the opening of new businesses in 2002. These included Motion on Embankment in London and Tiger Tiger in Newcastle and Glasgow. A second City of London outlet is planned to open in the New Year in Cornhill. The 900-capacity operation will feature the established Urbium bar nightclub format.

A smaller-capacity Tiger Tiger will also open in Aberdeen in the first half of next year, while the former Bar Madrid just off Oxford Street in London, which closed this summer, will reopen at Christmas as new nightclub Wax.

Urbium runs 26 outlets, 16 of which are in London, and seven of which come under the Tiger Tiger brand. The eighth Tiger Tiger outlet in Birmingham's Broad Street closed earlier this month and will be reopened as a less upmarket venue.

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