Activities

Inventive Leisure is a specialist bar and nightclub operator whose unique selling point lies in the wide range of vodkas offered through its Revolution-branded bars.

The group has its own vodka plant in Manchester where it produces its 30-strong range of infused and flavoured vodkas. The Revolution bars also offer more than 50 imported premium branded vodkas and a wide range of vodka-based cocktails.

Revolution vodka bars are contemporary, individually-styled venues found throughout the UK in town and city centres. They are aimed at the 18-30-year-old market.

Most operate throughout the day, offering lunchtime dining, early evening drinking and late night partying.

After floating on the Alternative Investment Market in 2000, the group returned to private ownership in 2006 after it was bought by private equity firm Alchemy Partners of Guernsey.

Alchemy also owns the Tattershall Castle Group of managed pubs and bars, which it created from the purchase of 178 Spirit pubs in 2005.

Timeline

• 1991: Roy Ellis and Neil McLeod found Inventive Leisure with £105,000 when they open Chester Moonshine’s in Aston-under-Lyne in Greater Manchester. For the first five years, the group focuses on unbranded venues (such as Loveshack and Sparx) in satellite towns around Manchester, including Bolton and Rochdale.
• 1996: Inventive opens its first Revolution vodka bar in Manchester.
• 1999: The group opens its first North African-themed Camel Club nightclubs in Huddersfield and Liverpool. Glasgow becomes the site of the first Revolution bar in Scotland.
• 2000: Inventive buys its vodka factory in Manchester. In May, it floats on the Alternative Investment Market.
• April 2002: The group raises £5.6m from an open placing of new shares to fuel its expansion. The exercise reduces Ellis and McLeod’s stake in the company from 58% to 40%.
• 2004: Inventive launches a new food initiative, Vodka Kitchen, to boost food sales across its estate.
• September 2005: Inventive reveals that it is in takeover talks with a private equity group, which is later confirmed to be Alchemy Partners.
• November 2005: The group receives a takeover approach from late-night bar rival Ultimate Leisure.
• December 2005: Regent Inns also joins the list of firms interested in buying Inventive Leisure. Alchemy Partners submits a £42.5m bid through Caspian Bidco which becomes unconditional in January 2006. Alchemy emerges with an 80% stake in the company, while the Inventive management hold just under 20% of the group’s equity.

Financial snapshot

Full Year

Turnover: £44.9m (2004: £41.7m)
Pre-tax profit: £3.6m (2004: £2.5m)

Half Year

Turnover: £22.7m (2004: £20.4m)
Pre-tax profit: £1.8m (2004: £1.5m)

Financial year end: 30 June 2005
Half year end: 25 December 2004

Operating data

In the year to 30 June 2005:
Revolution increased like-for-like sales by 1.5%
Food sales grew by 34% to account for 5.2% of total sales
Vodka accounted for 39% of sales
Company gearing dropped to 46.1% from 60.7%

Number of bars: 44
Revolution bars: 40
Unbranded bars: 4, including the Camel Club in Huddersfield, and The Loft and Boogie in Ashton-under-Lyne.
 
Number of employees: more than 1,500

Strategy

“The recent openings and the development opportunities in the pipeline reinforce our belief that there can be around 100 successful Revolutions in the UK.  We continue to implement new ideas and we have additional initiatives to launch in the near future.  The board remains confident for the long-term growth prospects for the group.”

Source: annual results statement, 6 September 2005

Chief executive

Roy Ellis

Key directors

Finance director: Sean Curran
Sales and marketing director: Neil McLeod

Contact

21 Old Street
Ashton-under-Lyne
Lancashire
OL6 6LA

Tel: 0161 330 3876
Fax: 0161 343 7144

E-mail: finance@inventiveleisureplc.com
Website: http://www.inventiveleisureplc.com