Arc Inspirations sales jump 7.5% amid expanded estate

Bar group Arc Inspirations has announced an annual sales growth of 7.5% up to £40.8m for the year ended 26 March 2023.

Alongside this the company posted an adjusted EBITDA of £3.84m, overcoming economy-wide inflationary and staffing pressures.

Company EBITDA for the year was lower than the previous period, which it said reflected a “challenging cost environment”, investment in the team for future growth and the absence of several one-off post-Covid benefits provided to hospitality businesses.

These non-recurring benefits totalled around £2m in FY22 and included the VAT rate reduction on food sales, business rates relief and government grants.

Arc’s stated that its results were elevated by the performance of two sites that were opened in the previous financial year, Manahatta in Temple Street, Birmingham, and BOX in Deansgate Manchester.

BOX Deansgate posted a company record gross sales week in late 2022, turning over more than £200,000.

The business plans to expand into four new cities in 2024, eyeing launches in London, Edinburgh, Liverpool and Cardiff.

Alongside this news the company also announced the appointment of new CFO, Ciara Allan.

Allan previously led the sale of Cooplands Bakery to EG Group and more recently supported shareholders on the asset sale of the Woven Group.

Martin Wolstencroft, Arc Inspirations co-founder and CEO, said: “The 12-month period to 26 March 2023 was a relentlessly challenging one for the hospitality and leisure industry. In this context, our performance reflects that of a well-managed, well-controlled, robust and resilient business. Our premium brands proposition appeals strongly to customers and our three distinct brands are differentiated and can exist close to each other in major cities, without suffering brand or trading dilution.

“There were a number of highlights in the financial year including a strong Easter, good volumes during the FIFA men’s football World Cup and excellent performances from our new sites, while our investment in outside areas has increased site capacities and made venues more attractive to consumers.”

He added: “The business continues to track ahead of the market as we move into the new financial year, which is extremely encouraging for future performance. The economic climate remains tough, exacerbated by the poor weather and rail strikes, but we remain focussed on delivering fantastic service quality through recruiting, training and retaining the best team.

“We have rolled out our Nobody Does It Better training, where our objective is for our teams to deliver a fantastic customer experience by exceeding customers’ expectations, and initial results have been outstanding – our total team turnover figures have reduced by 15% and our NPS scores have improved by 8 points.”