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Caterer & Hotelkeeper Magazine

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news desk
Thursday 30 October 2003 11:42

Ultimate turnover leap

Late-night bar and club operator Ultimate Leisure boosted turnover by 48% in the six weeks following the end of June, bucking a trend of depressed trade in many bars and nightclubs because of the hot weather.

During those six weeks, the North-East-based company raised £20m by issuing 6.9 million new shares at 300p apiece to fund its expansion plans.

Since June, it has bought three freehold bars in Belfast city centre. Chairman Jon Pither told shareholders last week that a freehold site in Derby would be on-stream by December and the development of a boathouse in Durham and a new site in Leeds would be completed during the current financial year.

Pither was confident that current overcapacity would make freehold properties in prime positions on the drinking circuits "more readily available".

Stamp duty anger

The Association of Licensed Multiple Retailers has slammed the government for ignoring industry views on controversial new plans that will increase stamp duty on hotel, restaurant and pub leases tenfold from 1 December.

ALMR chief executive Nick Bish said a late amendment that would exempt the first £150,000 of the net current value of the lease would only save its members an average of £1,500 - which was small beer as the new stamp duty charges were likely to average £10,5000.

The bill was rushed through the Commons in late May under a parliamentary guillotine that restricts debate.

Consultant CB Richard Ellis Hotels has calculated the new regime will increase the duty on a 35-year hotel lease with a £1m rental value from £20,000 to £23,000.

 

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