Newcastle leisure firm Vaulkhard Group chalked up turnover of £15.9m in a transformational year where it aimed to restructure its portfolio for the future.
Directors Ollie and Harry Vaulkhard formed the group following the death of their father Nigel, who had owned and run bars since the 1970s, merging his property portfolio and bringing them together with their own venues – many of which were late-night bars helping to drive Newcastle’s ‘party city’ economy.
Over the last year, the group – which includes Bealim House, Blakes Coffee and Kitchen, The Town Wall, The Bridge Tavern, Castro’s, Offshore 44 and the Beehive – has been moving away from operating bars geared towards younger drinkers. That has led to a number of disposals and acquisitions, including the disposal of Barluga in Gosforth, Swarleys in the Bigg Market and Pacific House in Newcastle. Notably, the firm also snapped up event space Wylam Brewery earlier in the year.
The move to change the portfolio is highlighted in the group’s accounts for 2023, which show the firm posted turnover of £15.9m in 2023, compared to £18.8m for the prior 15 months.
Operating profit was £905,330 compared to £1.19m, and Ebitda was £1.138m compared to £1.4m. Directors said that, when taking into account the seasonality of the prior 15-month period, the figure represents an improvement on the EBITDA from the 2022 period.
At the balance sheet date, net assets had increased to £18.1m compared to £15.3m, representing an increase of 18%, and overall profit for the year was £1.6m, compared to £104,529.
Ollie Vaulkhard said in the accounts: “During the year, the group continued to reposition its trading portfolio with the disposal of two late night, leasehold venues. Since the year end, the group has also disposed of a predominantly late-night freehold venue. Also post year end the group has acquired the freehold of a trading venue within Newcastle city centre and also acquired a significant events space venue within Newcastle city centre.
“These acquisitions and disposals are in line with the board’s long-term strategic objectives to reposition the group away from late-night young people venues.
“As we approach the final quarter of FY24, the board believes that the group is well placed to overcome the challenging market conditions and inflationary pressures, including high utility costs, wage inflation and an overall increase in costs. The positive changes made by the directors during the pandemic and beyond can now be seen to be taking effect and gives the board confidence as we look toward 2025 and beyond.”
