The acquisition of a number of venues in Edinburgh paid off for nightclub tycoon Stefan King’s G1 Group last year, helping profits increase by more than 40 per cent.
The company bought The Three Sisters & Tailors Hall, Biddy Mulligans & Grassmarket Hotel, the Bank Hotel, Cabaret Voltaire and the Murrayfield Hotel.
The group, which also acquired Sportsters in Perth, said yesterday that the expanded portfolio helped turnover rise 20 per cent in the 12 months 31 March, to £59.3 million.
It said the new venues accounted for about half of the 46.4 per cent increase in operating profit, which reached £7.5m.
The rest of the growth came from existing operations, which benefited from a growing use of social media to communicate directly with customers.
Chairman Brian McGhee said: “Customer communication and marketing is increasingly influenced by social media tools and the G1 team have shown flair and creativity in this area.”
He said investment in staff training also made “a substantial contribution” to improving standards at the firm’s venues and had helped with employee retention.
The acquisitions during the year and major refurbishment expenditure during the prior year have increased the company’s debt and interest payments, but it still recorded a 38.9 per cent increase in pre-tax profit to £6.5m.
The group said it was forging ahead with the refurbishment of its new properties, and it has also carried out work at D’Arcys and Replay in Glasgow in the current year, giving them total makeovers.
G1 said that although difficult economic conditions look likely to continue beyond 2012, it believes it can address the challenges successfully and continue to expand.
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