In the 53 weeks to 31 March 2013, Living Ventures Group reports that it made significant progress and performed well. Total revenue increased by 23% to £47.3 million and EBITDA rose 39% to £4.1 million. Profit before tax, after taking into account all interest was £1.55 million, an increase of 315% year on year.
The group invested £4.1 million in the year in capital expenditure, opening four new sites and completing the refurbishment of the Blackhouse restaurant The Grill on the Market in London’s Smithfield. Since the year end, a further three new sites have been opened (Manchester House and Artisan in Manchester and Smugglers Cove in Liverpool).
Current trading
In the current financial year the business has continued to trade well. Most recently over the Christmas period, the Group saw sales 43% higher than last year. Most of this growth came from the six new sites opened over the last year, but there were also some very impressive like for like performances particularly Gusto at Albert Dock, the New World Trading Company sites and Australasia. Overall, like for like sales were 9% higher than last year.
Tim Bacon, CEO of Living Ventures Group, commented:
“Our results speak for themselves. We are delighted with the progress of the business and are confident of making further progress in the current year.
“The Group is developing really well. We believe that we now have the constituent parts for an offer that can be applied in other cities other than Manchester. Our focus will be to continue to build a highly cash generative and profitable business.“
Operations: Casual Dining (30 restaurants)
GUSTO had a very successful year with total revenues increasing 7% to £16.1m achieved through cover and price growth.
Delivering excellent returns, GUSTO is an upper-mid market informal Italian brasserie offering ‘casual dining with aspiration’. The Company operates from 9 restaurants in city centre, suburban and neighbourhood locations largely in the North West and generates an average spend per head of £21. The menu focuses on freshly prepared, classic and contemporary Italian food offering a wide range of pizza, pasta, meat and seafood dishes. GUSTO offers both atmosphere and ambience ensuring each restaurant remains a ‘destination’
Blackhouse Grill also has had a successful year with revenues increasing 5% to £14.2m. Blackhouse Grill sits in the upper mid-market of the restaurant sector and achieves average spend per head of around £30. It offers fine steak and seafood.
First pioneered in London in 2005, operating from 7 units including one on London, five in the North and one in Glasgow, Blackhouse has become renowned for its quality and value in each of its localities. It has performed well and is delivering excellent returns.
The Alchemist opened in 2011 and has proved transformational for Spinningfields in Manchester City Centre. A second bar opened in summer 2012 in Manchester and a third in Leeds in early 2013. The Alchemist offers an extensive and bespoke molecular cocktail and drinks list which sits alongside an innovative food menu combining to provide a real destination bar for any city centre.
The Alchemist will open its first bar in London in 2014 with future openings later in the year.
An additional bar opened in Leeds Trinity Centre in April 2013 providing the company’s first experience of shopping centre trading.
Created in 2011 The New World Trading Company (NWTC) has been developed over the last two years with 4 units opening in the North, the Oast House in Manchester, Botanists in Alderley Edge (opened 2012) and in Leeds (2013). NWTC venues offer a range of local ales as well as champagnes and creative cocktails. Food comes in the form of a rustic deli menu with offerings from the barbeque and the rotisserie together with a selection of home comforts. Live and acoustic music work up a great atmosphere in the evenings.
Revenues in New World Trading Company rose from £1.0m to £4.5m in the year including two new openings
Hill Capital investment
The success of this format to date has encouraged external funding with Hill Capital investing
£2.7 million for its development in early 2013. The most recent offering is Smugglers Cove, in Albert Dock Liverpool, which opened in late 2013 following a £1m investment expanding the breadth of the Living Ventures offer in Liverpool. The pipeline for NWTC for 2014 is strong.
Building on the strong presence in Spinningfields, Manchester Living Ventures also developed, this year, the Artisan Kitchen and Bar serving handmade, rustic dishes from 200 covers in the Avenue North area.
Operations: Fine dining (2 restaurants)
Australasia was the Group’s first foray into up tempo fine dining. Opened in 2011 it has become a stalwart of the burgeoning restaurant scene in Manchester’s City Centre.
It has been a great success offering modern Australian cuisine combining Pacific Rim flavours underpinned by European cooking tradition. A blend of Indonesian, Southeast Asian influences and Australia’s strong ties with Japan also help determine the taste and style. The bar boasts a unique list of expertly crafted, exclusive cocktails alongside all the classics and a wine list of impressive quality. Sales at Australasia were up 38% year-on-year.
The Group is pleased to report that the strong performance of Australasia has encouraged further investment in the sector with the launch of Manchester House, a new fine dining experience in Manchester, in September 2013 to much acclaim. It offers a 76 cover restaurant and a rooftop bar lounge serving innovative British cuisine. Its highly regarded Head Chef, Aidan Byrne was the youngest ever chef to achieve Michelin star status.
About Living Ventures
Living Ventures Group is led by entrepreneurs Tim Bacon and Jeremy Roberts and operates 32 restaurants across 4 core brands – Gusto, Blackhouse, New World Trading Company, The Alchemist – and 3 development brands Australasia, Artisan and Manchester House.
Living Ventures has devised its own unique strategy across a number of different sub sectors of the restaurant market ranging from casual to fine dining, capturing market share in all spend and demographics within a region. The philosophy is similar to that of investing across the yield curve.
Living Ventures has built the foundation of its vision in Manchester, where it now has 10 restaurants, and has begun to evolve in similar fashion in Liverpool and Leeds with plans to grow into a £100m company using this template and recreating this success in other cities as well as expanding into London.
Prior to 2010 the management team focussed on developing Gusto and Blackhouse and whilst these brands have continued to thrive and provide the cornerstone of the Group, the Company has subsequently developed: The Alchemist, bar and restaurant; The New World Trading Company; Australasia; and most recently Artisan and Manchester House.
In 2013 the Company entered into partnership with Hill Capital to develop its New World Trading Company. Hill Capital was launched by Paul Campbell in 2010 to invest in leisure businesses and is funded by LDC. Hill Capital has invested £2.7 million into New World Trading Company to grow and expand this business.