Irish outlets boost profit at Break for the Border

RECORD profits earned on Irish activities played a significant part in overcoming serious setbacks on certain London operations at the Break for the Border group in the 12 months to the end of March.

Group pre tax profits edged forward only 10 per cent to £1.1 million sterling despite a 74 per cent increase in turnover to £19 million, mainly reflecting a trio of acquisitions, including the Gaiety Theatre, in Dublin last January, partly financed by share issues.

The group's difficulties are best reflected in a fall in earnings per share from 4.20p to 2.89p. Even so, boardroom confidence in the future has inspired an 11 per cent increase in the total dividend payout to 1.65p. Shares in the company rose 2p to 43p on hopes that the past year's London difficulties will not be repeated.

The group's established Irish businesses in Dublin comprising Break for the Border, Cafe en Seine, Major Tom's, Sinnotts and the Grafton Plaza Hotel outperformed the previous year, when operating profits of £680,000 were earned on £6.54 million turnover.

Chairman, Mr Robert Gunlack said the Dublin activities had consolidated its position as one of the leading leisure groups in Ireland. "Our Dublin businesses have continued to benefit from the very strong Irish economy and the 14 per cent increase in tourism over the previous year," said Mr Gunlack.

The Gaiety Theatre sustained "a small loss" in the three months following its January acquisition. But Mr Gunlack said it was now beginning to benefit from the group's experience of booking music artists.

"We anticipate considerable opportunities to enhance drink margins at The Gaiety with 6,900 sq ft of bar space connected with the theatre," he said.

In London, however, the group suffered a major £600,000 setback at Howl at the Moon, a new party venue near Oxford Circus. Building cost overruns led to £400,000 losses and operating results after its opening were £200,000 below budget. Howl at the Moon has now been changed back into the group's second Break for the Border outlet in London in the hope that losses will be stemmed from economies of scale and the benefits of late night drinking.

Elsewhere in London, though the group appears to be thriving. The Borderline, its live music bar in Soho, is attracting up and coming bands and artists from all over the world and its two music venues, Brixton Academy and Shepherds' Bush Empire, are well booked. The group's third leg, Lawson Beaumont, is developing its position in event catering and Christmas themed party venues.