Tue 27th Sep 2022 - Arc Inspirations outlines plans for significant growth as it reports record sales and profits Arc Inspirations outlines plans for significant growth as it reports record sales and profits: Multi-site operator Arc Inspirations has outlined plans for significant growth as it reported record sales and profits. The Martin Wolstencroft-led business, which operates Banyan, Box and Manahatta, is planning to open five sites in the next six months, creating 500 jobs. Arc will open three new Manahatta cocktail bars – in Newcastle, Nottingham and Sheffield – and two new Box premium sports bars, in Nottingham and Birmingham. It follows a £19m investment by BGF earlier this year, paving the way for a doubling of the 18-strong business over the next three-to-five years. It comes as Arc reported record group sales and profits, of £38.9m and £7.5m (adjusted Ebitda) for the year ending 31 March 2022. This was significantly ahead of its numbers in the year to March 2020 which, bar a few weeks, was before the pandemic impacted the business, with sales up 27% versus that period, and like-for-like sales up 18%. The momentum has continued into the new financial period, with like-for-like sales in the first quarter up 19% compared with the same period prior to covid (April-June 2019). Wolstencroft said: “This was an exceptional and transformational year for our company. This is a testament to our team and culture. We are now able to contemplate a year without any trading restrictions for the first time since 2019. While clearly challenges remain, the business is extremely well-positioned with a clear growth plan, an exceptional pipeline of new sites, strong customer brands and two new strategic partnerships, which when combined will enable the business to capitalise on market opportunities over the next five years.” During the year the business opened two new flagship venues – a Manahatta, in Temple Street, Birmingham – its first site in the Midlands – and a Box in Deansgate, Manchester. These sites are now among the highest revenue-generating venues in the group. Wolstencroft added: “On the back of this performance and the significant development of our business over the past two years, we face the future with confidence. The business continues to perform strongly, we are set for a period of significant growth and expect to produce another record year of revenue and profit (to 31 March 2023). Therefore, by any measure, the business is in a very strong position. This is particularly important given the current environment and the headwinds now confronting the hospitality industry, and much of the economy. The cost-of-living crisis has clearly impacted consumer confidence, with the latest Bank of England report forecasting recession, and this will impact disposable income. It has also hit the cost of doing business, with the industry facing into extremely high levels of inflation, across the cost of goods, energy pricing and labour. Our hugely experienced management team has successfully led the business through previous cycles as well as of course the challenges of the pandemic. We will make any and all necessary adjustments in order to maintain our position as a best-in-class operator, with compelling brands that deliver leading levels of consumer demand; a best-in-class employer with a highly motivated team; and we will exercise appropriate financial prudence in maintaining a strong balance sheet as we deliver on our growth ambitions. Notwithstanding the current challenges we remain extremely confident about our future prospects.” Arc features in Propel’s Turnover & Profits Blue Book, which is updated monthly for Premium subscribers and now features 619 companies. The Blue Book, which is produced in association with Mapal Group, provides a five-year overview of turnover and profit, ranks companies according to turnover, pre-tax profit and profit conversion. The Blue Book also provides details of directors’ earnings and highest paid directors. Companies can now have an unlimited number of people receive access to Propel Premium for a year for £895 plus VAT – whether they are an operator or a supplier. The single subscription rate is £445 plus VAT for operators and £545 plus VAT for suppliers. Email jo.charity@propelinfo.com to upgrade your subscription.