Fierce competition on the high street has hit North-east bar and hotel operator Honeycombe Leisure’s sales in the year to date.
Company chairman Sandy Lane said although its community pubs and restaurants had been resilient, several of its larger town-centre bars had come under pressure.
Like-for-like sales at the company, which owns or manages around 150 bars, pubs and hotels, are 3% lower in the year to date compared with last.
There was better news for its pub management business with Venture Capital Trust (VCT) Nectar, which runs 30 pubs on behalf of their landlords, delivering returns on capital in excess of 20% and generating fees of £15,000 per week.
Amber Taverns, Honeycombe’s second VCT set up in June of this year, is now getting up to speed with one site under management, three more contracts signed and terms agreed for 14 more pubs.
Earlier this year the company sold its Ma Hubbards restaurants to newly created Ma Hubbards Ltd retaining the management contract for the sites as part of a planned £9m expansion.