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SFI targets 20 per cent of bar market
SFI appoints a new chief executive and plans to double the size of the group, following positive half year results.
Tony Hill, speaking at the release of interim results to 15 December last year, said the group had had another strong start:
'SFI has a momentum of growth and is positioned in the one sector of licensed retailing that continues to expand. With a new chief executive who has been an integral part of the SFI success story, I believe the future looks exciting for shareholders.'
Turnover was up 30 per cent to £73m with four per cent like-for-like growth. Pre-tax profits before exceptionals increased 22 per cent to £9.3m. A sale and leaseback deal of seven properties was completed last month, raising £12m.
New chief executive designate, Andrew Latham, has a total of nine years experience with SFI and says he is delighted to take the role: 'I have been proud to be part of SFI's consistent growth …I believe there is considerable further growth to be achieved.'
Hill says the high street bars market is the fastest growing sector of licensed retailing and the most profitable sector of the industry. 'Mintel has recently published the first independent research into high street bars. It shows the market sector has grown rapidly and consistently in recent years, reaching a value of £2.5bn in 2001.
'High street bars are now firmly established as a sector with substantial barriers to entry, but offering significant rewards for the winners that establish strong positions.'
SFI intends to open 18 new branded outlets in the next six months, bringing both Slug and Lettuce and Litten Tree to approaching 60 outlets. The group has a long-term objective of a 20 per cent share by value of the high street bars market.
Litten Tree brand is the company's favourite in terms of greatest potential in the long term. Litten Tree sales increased by 36 per cent in the half-year, while profit contribution grew by 56 per cent. SFI says the repositioning of Bar Med is working best as a large hybrid bar aimed primarily at the late night entertainment-led market.
Hill intends supporting Latham's team part-time and will finally step down as chair following the AGM in the autumn of 2003.