Newcastle leisure firm Vaulkhard Group narrowed its losses in a year which saw it become one of Newcastle’s biggest operators with a string of acquisitions.
The Gallowgate-based hospitality firm, owners of venues including the Quilted Camel, The Diamond, Bar Luga, Blakes Coffee House and the Mushroom, took on a number of new pubs last year during a major reshuffle for city centre bar ownership.
The company, formed by directors Ollie and Harry Vaulkhard following the death of their father Nigel, was among Tyneside operators taking stock of their portfolios in the pandemic, which led to it acquiring seven new venues: Newcastle’s Beeronomy, which is now Castro’s, the Bridge Tavern, The Town Wall, Offshore 44, Bob Trollops, Redhouse and the Beehive. Since the end of its financial year, it has also snapped up The Staith House in North Shields.
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The firm’s portfolio was closed for the majority of the period covered in the year ended September 30 2021, yet it posted turnover of £5.95m, while Ebitda was £573,590, up from the £719 posted for the previous accounting period, which had been extended to 18 months in efforts to fully capture the impact of the pandemic. The overall loss for the year was £576,012 – a significant improvement on the £1.54m posted for the prior 18 months.
In the accounts review, Ollie Vaulkhard said the figures represent a 12-month period impacted by closures and restrictions from the Covid pandemic, although Vaulkhard Leisure made some significant additions to its estate “almost making like-for-like comparisons irrelevant”.
He said: “Its portfolio of leisure venues now has a forecast annualised turnover in the region of £15m, of which £6m is attributed to the additions in the period, along with another venue added in FY22. These additions represent around 40% of Vaulkhard Leisure turnover – which is therefore in a very different place post pandemic.”
The business also includes the Newcastle Gin distillery, and property rental and development, but it was the leisure estate which delivered particularly pleasing results, following the lifting of Covid restrictions.
Mr Vaulkhard said in the accounts: “Post year end the subsequent 2021 festive period was adversely impacted by the Omicron variant, which we believe saw a 20%-25% reduction on anticipated turnover levels.
"However, following a UK Booster Vaccination Programme across the winter the Government was able to announce in February 2022 an end to all legal restrictions in England, with a living with Covid plan. Trading levels have since been strong, as consumer confidence returns following the pandemic.
“As we approach the final quarter of FY22, and looking ahead to FY23, the board believes the estate is well placed to overcome the challenging market conditions with the well documented inflationary pressures, alongside labour shortages. We are confident that the capital expenditure projects undertaken during these pandemic years will deliver a clear and tangible benefit to the period ahead.
“Our amazing staff across all aspects of the business, have collectively helped the business provide that all important enjoyable experience to our end customers, through what has been a challenging time for everyone. Knowing we have overcome these challenges fills us with confidence and excitement for the road ahead.”
