Premium hit as consumers have less to spend at pub

Published on Thursday 9 October 2008 21:20

PREMIUM Bars and Restaurants, the Aim-listed owner of the Living Room bars in Edinburgh and Glasgow, yesterday said its sales were suffering from the "wider economic malaise".

The group – which also owns the Prohibition and Bel and the Dragon chains – said its like-for-like sales were running 7.4 per cent lower than a year ago.

Premiumreported underlying losses of 900,000 for the year to the end of June.

Mark Jones, Premium's chairman, said "Our sales have been negatively impacted by the wider economic malaise. We expect adverse market conditions to continue for some time to come."

The Newcastle-based group, which owns a total of 48 bars, including many in the north of England said it was working to "reduce costs and slow down capital expenditure" to protect profit margins and conserve cash.

It is in talks with banks about securing working capital for the foreseeable future.

Premium said fewer customers were drinking in its venues early in the week and its supplier costs were rising.

The acquisition of Bel and the Dragon and the Living Room brands pushed full-year revenues up by 79.8 per cent to 66m, but like-for-like sales fell 5 per cent with the decline driven by drink and door income.