Deltic Group posts a loss but refurbishment and sales pushes increase admissions

Bar and club operator Deltic Group reported a loss for the year to February this year, but regained some ground during quieter periods with its drinks offers.

The results predate Deltic’s aggressive move into M&A this year, when it faced off Stonegate in a bidding war for Revolution Bars and eventually bought a stake in the company.

The company, which runs venues under the names Pryzm, Vinyl, Atik, Fiction, and Bar&Beyond, made a £1.48m loss before tax in the 52 weeks to February 2017, according to documents filed with companies house.

Underlying earnings dropped 2.3 per cent to £13.3m.

But admissions numbers grew 6.9 per cent over the period, thanks largely to various promotions and a new sales team. This also helped to boost revenues 1.4 per cent to £102.2m.

Why it’s interesting

Gloom has been hanging over the late-night industry for the past few years, with famous venues like Soho’s G-A-Y nightclub and Fabric facing closure, while spending on nights out shifts to early evening pursuits like going to the pub.

The company has confronted a general decline in the nightclub industry by investing in refurbishing its estate and improving its sales team. Pre-booked sales rose by 47 per cent across its estate this year, following investment in sales staff and use of customer data.

Deltic’s chief executive Peter Marks has previously told City A.M. he would like to see night tsars appointed in more UK cities to support the night-time economy.

What Deltic said

Alex Millington, a director of the company, said:

“The late-night sector has faced a number of challenges historically which we believe is now in a better place. Much of the oversupply has come out of the market, there are no new regulatory issues that can be foreseen, and Deltic, aong with other town centre operators, are investing in their offerings and having confidence again.”