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Morning Briefing for pub, restaurant and food wervice operators

Fri 7th Dec 2012 - Breaking News
Yellowhammer Bars sells three sites after 18 per cent drop in like-for-like sales across its 20 venues: Yellowhammer Bars, the operator of Groove and Bliss nightclubs and three style bars branded as Chilli White, has undertaken a strategic review that has seen it dispose of sites in Banbury, Barnstaple and Swindon. The move came after the company saw like-for-like sales drop by 18 per cent across its 20 sites in the year to 29 February 2012. The company will now focus on five freehold and 12 leasehold units. Turnover dropped 18 per cent to £20,537,857 in the most recent year, which followed a year that had seen turnover drop by 13 per cent. The company made a pre-tax profit of £1,978,477 in the most recent year compared to £4,080,866 the year before. A statement to Companies House said: “Reduced consumer spending has continued to hit the sector quite hard and we report a 18 per cent decline in year on year same outlet sales. Since the year-end, a strategic review has been undertaken to ensure that all units to remain in the group are profitable or of strategic importance to the long term viability of the group. The group, going forwards, will rationalise to five freehold and 12 leasehold units. Since the year-end, three units at Banbury, Barnstaple and Swindon have been disposed of. The resultant aim of the restructure of the group is to achieve a return to underlying operating profitability.” Yellowhammer is owned by private equity firm Agilo, which is a specialist in buying distressed assets, and is run by Volante Management, which was awarded the contract to run the business in March 2011. The company is made up of three Agilo acquisitions – Candu Entertainment, Future 3000 and the four-strong Sports Café business. Its chairman is industry veteran Derek Parfitt, who has previously held directorships with Morrells, Greene King and the Magic Pub Company.

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