Profits fall at Bargain Booze

PROFITS at Crewe-based off-licence chain Bargain Booze declined by 12% to £3.8m in 2011, despite a 3% increase in sales to £380.7m.

The company, which has been put up for sale by its private equity owners ECI Ventures, trades from around 650 locations which are run by its franchisees.

It said the results were “broadly in line with management expectations”. It also said it was “satisfied” with the balance sheet position at the end of the year, as it moved from having net liabilities of £26,000 to assets of £1.6m.

This is largely due to the fact that it has reduced its long-term debt by more than £5m by paying off loan notes. The group’s long term debt now stands at £41.5m, although the bulk of this is loan notes owed to ECI. Its bank debt stands at just over £7m.

ECI Ventures took its majority stake in Bargain Booze six years ago in a £63.5m deal. The business is currently understood to be on the market for up to £90m.