Vodka bars help boost Inventive Leisure's profits by 20%

Inventive Leisure, the company responsible for the Revolution chain of vodka bars, announced a 20 per cent profits increase yesterday despite being forced to close some of its outlets following violent incidents in Manchester.

The company was forced to close its Universal nightclub and merge two other bars into one after turnover there dropped 50 per cent following disturbances in Ashton-under-Lyne, south Manchester, in May.

Two outlets have also been sold in Oldham and the company's remaining seven non-core site are now also up for sale.

Despite these losses, the group's core brand of Revolution bars have performed well, helping it post second-half results that saw turnover increase by 40 per cent to £17.4m, with pre-tax profits rising to £1.41m compared with £1.18m last year.

The company also announced the resignation of its finance director, Vernon Lord. Mr Lord has agreed to stay on until a replacement is found. Sales from Revolution bars have increased 60 per cent following the opening of five new bars during the first half of the year. The company also has contracts exchanged on seven other sites, and says it aims to expand the brand into up to 80 new venues within six years.

However, the chief executive, Roy Ellis, was cautious about short-term growth, saying the new site in Swansea that opened earlier this month would be the only expansion for the second half of the year. "There's no question that funding is an issue. At the moment, given the uncertainty, particularly in the high street, we don't see the benefit of going hell for leather," he said.

Forecasts for the company have been reduced by 4 per cent following the weak performance of the non-core estate, which contributes just 3 per cent of profits. "They're opening fewer units and have cut expansions a little bit, but there's no disgrace in that given the current climate," Douglas Jack, an analyst at WestLB Panmure, said. The shares were unchanged at 100p.