State of Play Hospitality looking to double its estate by 2026 following ‘transformational year’ in which revenue more than doubled, including record month in December, 30% turnover rise in 2024 forecast: State of Play Hospitality has said it is looking to double its estate by 2026 following a “transformational year” in which revenue more than doubled, including a record month in December. The business owns the US rights for the Flight Club concept, and last month opened its eighth site there under the brand, in Washington DC, as well as the Hijingo and Bounce brands. “Calendar year 2023 was a transformational one for State of Play with growth across all brands,” the business said. “It opened three new venues, namely two Flight Clubs in Atlanta and Denver and Bounce Battersea Power Station in London, the first new Bounce for eight years, re-launching the brand with a new design. The group’s estate has grown to 11 venues with seven in the US and four in the UK. The group expects to more than double its estate over the next two years with at least five venues scheduled to open in 2024.” The year to 30 March 2023 saw the group more than double its revenue to £35.3m and return to post pandemic profit, despite significant investment into its central team. In the UK, revenue was £13.3m an increase of 40% on the previous year. December was a record month for the group, with a 34% year on year increase (+8% like-for-like). The UK was up 32% vs December 2022 and +9% like-for-like. Revenue for year to March 2024 is expected to be over 30% up on the prior year. In 2022, it reported turnover of £16,991,323 and a pre-tax loss of £11,211,144. “The group’s concepts have continued to benefit from the pre and post pandemic consumer shift towards experiential and activity led hospitality,” the business said. “Over the last year the group has also made significant progress with its ESG agenda including its global sustainability initiative ‘Play with Purpose’. Bounce Farringdon in London has been awarded the Greengage ECOsmart silver accreditation, an industry certification that recognises credible sustainability practices. As a member of Carbon Zero Forum since 2021, State of Play is making the required changes to continue its journey to net zero. The State of Play Foundation, which leads the group’s community and charitable agenda, organised the third Bounce City Cup, with 32 City teams again battling it out for the coveted trophy. This year, the event was held in aid of the Young Urban Arts Foundation and raised over £11k for the charity.” Chief executive Toby Harris added: “Last year was pivotal for State of Play, along with achieving significant organic growth we invested heavily in our leadership team especially in the US. I’m very excited about what lies ahead for the group given we now have the management platform in place to deliver on our growth plans and realise the full potential of the business.” State of Play Hospitality features in the Propel Turnover & Profits Blue Book. Its turnover of £35.3m for the year ending 30 March 2023 is the 253rd highest in the database. The Blue Book ranks companies by turnover, profit and profit conversion, listing directors’ earnings for the past five years. Companies can now have an unlimited number of people receive access to Propel Premium for a year for £995 plus VAT – whether they are an operator or a supplier. The single subscription rate is £495 plus VAT for operators and £595 plus VAT for suppliers. Email kai.kirkman@propelinfo.com to upgrade your subscription.

Red Oak Taverns acquires four pubs from Marston’s: Red Oak Taverns, the national pub operator founded by Aaron Brown and Mark Grunnell in 2011, has begun its 2024 acquisition programme by adding a further four pubs to its portfolio from Marston’s. The pubs are the Pied Bull, Shepshed, Leicestershire; the Prince Albert, Kingswinford, West Midlands; the Queens Arms, Bakewell, Derbyshire; and the Victoria, Oxford. This is the second acquisition Red Oak has made from Marston’s in the past 12 months, having previously acquired three assets in February 2023. Grunnell said: “We are delighted to have kicked off our 2024 acquisition programme with these four high quality ‘free-of-tie’ assets. They take our free-of-tie division to more than 85 pubs and further demonstrate our unique proposition of flexibly operating substantial portfolios of both tied and free-of-tie assets.” Aided by its recent refinancing with OakNorth Bank, Red Oak Taverns said it continues to seek out and secure business opportunities on an individual and package basis. The company operates 230 sites.

 

Club 3000 Bingo pays £3m dividend, reports £14m turnover growth driven by gaming income, pays off bank loans and opens new club: Club 3000 Bingo paid £3m in dividends in the year to 31 March 2023 and reported turnover growth of £14m, driven by a £12m boost in gaming income. It also paid off its bank loans and opened a new club during the period, in Mansfield, taking its estate to 24 clubs across the UK. A new £2.45m bank loan had been drawn down during the previous year, repayable in 60 monthly instalments until March 2026 (£1,515,208 owed at 2022 year-end), which was repaid during the year. It comes after the business reported a pre-tax profit of £12,179,122 in the year, up from £10,399,152 in 2022. Turnover grew from £44,670,755 to £58,485,203, including £50,832,131 from gaming income (2022: £38,511,667) and £7,236,518 from food and drink (2022: £5,757,584). The company received £15,643 in government grants compared with £1,551,352 in 2022. Dividends of £3m were paid (2022: nil). Owner Brian Fraser said: “Turnover has increased during the year as a result of the business being fully reopened through most of the year following the interruptions caused by the covid-19 pandemic. Trading conditions remain challenging across the sector with inflationary pressures impacting both costs and consumer disposable income. However, we feel the company has adapted well to these conditions and will continue to closely review market and economic conditions going forward.” Club 3000 Bingo was founded by Fraser in 2006 and is now the UK’s third-largest bingo chain, and largest independent operator. He has been in the industry for four decades, having started out as a trainee manager at Mecca Bingo and later setting up Riva in 1997 before selling the six-club business in 2004. During the year, in November 2022, Fraser’s son, Oliver, became general manager of the brand’s Kilmarnock club – breaking the record for the UK’s youngest bingo club general manager (at the age of 22) previously held by Fraser himself (at the age of 23). 

 

Scottish pub and hotel company makes a loss but ‘trades well’ despite ‘new challenges’, pays off £3.5m in bank loans: Scottish pub and hotel company Caledonia Inns made a loss in the year to 31 March 2023 but “traded well” despite “new challenges”. It also paid off £3,507,887 in bank loans during the year, leaving it with one outstanding loan of £4,500,000, repayable in September 2028. The business reported a pre-tax profit of £74,936 for the year, down from £528,258 in 2022. Turnover grew slightly from £3,389,365 to £3,482,981. Of the 2023 figure, £2,601,911 came from food and beverage (2022: £2,791,557) and £881,070 from accommodation (2022: £597,808). No government grants were received (2022: £121,154) and no dividends were paid (2022: nil). Owner Billy Lowe said: “In the year to 31 March 2023, the business has traded well and I am happy with the progress made, given the continuing challenges that hospitality businesses have endured. Ebitda decreased from £708,966 to £603,424 as a result of government support being significantly reduced, as well as the higher cost of goods and increased staffing costs. New challenges following the covid-19 pandemic had an impact on the company’s operations. However, we were able to trade well in the circumstances.” Edinburgh pub entrepreneur Lowe founded Caledonia Inns in 2017 with the acquisitions of the Links Hotel in Bruntsfield and Malones Irish bar in Forrest Road. In September 2023, he was given the Lifetime Achievement Award at the Scottish Bar and Pub Awards in recognition of his 35 years in the licensed trade.