Eclectic Bar Group plc 
36 Drury Lane
London WC2B 5RR
Tel:  020 7376 6300
Fax: 020 7823 3756
www.eclecticbars.co.uk
A TRAnsfo RmATion AL yeAR
Annual Report 201 4
6634 Eclectic AR 2014_Cover_TP.indd   1 31/10/2014   13:13 eclectic is a leading operator of premium bars in the UK.  
The Group’s portfolio comprises 23 venues (21 at the end  
of the year) located in major towns and cities, predominantly 
targeting a customer base of sophisticated students midweek 
and stylish over 21s and young professionals at weekends.  
The Group focuses on delivering added value for its customers, 
with premium product ranges, high-quality music and 
entertainment, and a commitment to high service levels  
and standards. eclectic trades across its estate under a variety 
of formats, including embargo Republica, Lola Lo, sakura,  
Dirty Blonde, Lowlander, Coalition, Po na na and f ez Club.
Co nTenTs
Strategic Report
01 Highlights
02 Chairman’s statement
04 Chief executive’s Review
08 Principal risks and uncertainties
10 Brands and concepts
Governance
12 Directors’ Report
16 Directors’ Responsibility statement
17  independent Auditor’s Report to the 
members of eclectic Bar Group plc
Financials
18 Consolidated income statement
19 Consolidated balance sheet
20 	 C o n so l i d at ed 	 s t at e m e n t 	 o f 	 c a s h 	 fl ow s
21  Consolidated statement of changes  
in equity
22 	 	 N o t es 	 t o 	 t h e 	 c o n so l i d at ed 	 fi n a n ci a l 	
statements
48 Parent company accounts
50 n otes to the parent company accounts
Corporate information
55 	 D i re c t o r s, 	 o f fi c e r s 	 a n d 	 a d v i se r s
Designed and produced by instinctif Partners  www.instinctif.com
6634 Eclectic AR 2014_Cover_TP.indd   2 31/10/2014   13:13 Strategic Report
Eclectic Bar Group plc Annual Report 2014 01
hi Ghli Ghts Operational highlights
•  Acquired Coalition in Brighton in October 2013
•  Acquired a new lease on Deansgate Locks 
Manchester which opened as the ninth Lola Lo  
in December 2013 
•  Acquired the freehold of Coyote Wild in Derby  
(Lola Lo) which re-opened as a Lola Lo in April 2014
•  Madame Geisha in Brighton was temporarily  
closed and has been refurbished as the Group’s  
first Dirty Blonde, launched in March 2014 
•  Acquired Lowlander in Covent Garden, an  
established bar and brasserie business which  
provides an immediate profit contribution and 
importantly a food-led business which can be  
rolled out nationally over time
•  Increased the Revolving Credit Facility with  
Barclays Bank from £1.5 to £5 million to give the  
Group the capacity for further new acquisitions  
and allow for further development of existing sites.
Post year end
•  Two leases signed since year end in Sheffield  
and Liverpool
•  Major refurbishment of Embargo 59 utilising the  
space more fully, renamed Embargo Republica
•  Intention to pay special dividend in November 2014, 
of 2.5p.
Financial highlights
Revenue on continuing operations: £23.0 million 
2013: £20.6 million +11 .7%
Revenue including discontinued operation: £23.3 million 
2013: £21.2 million +10.1%
EBITDA on all operations before highlighted  
items: £2.9 million
2013: £2.8 million +3.3%
EBITDA on all operations after highlighted items
2013: £2.8 million £1.7m
EBITDA on continuing operations before highlighted 
items: £2.6 million 
2013: £2.2 million +14.1%
EBITDA on continuing operations after highlighted items
2013: £2.2 million £1.3m
Profit before tax and highlighted items increased  
to £1.0 million
2013: £0.9 million +10.0%
Loss before tax (including discontinued operations)  
and after highlighted items (the costs associated  
with the listing and new openings)
2013: profit £0.9 million £0.2m
6634 Eclectic AR 2014_5 _TP.indd   1 31/10/2014   13:09 02 Eclectic Bar Group plc Annual Report 2014
This has been a transformational  
year for Eclectic.
ChAIRMAN’S 
STATEMENT
Jim Fallon
Chairman
The 52 weeks to the end of June 2014 financial year has 
been a transformational period for Eclectic Bar Group plc 
(the Group). The highlight was the successful listing on 
AIM in November 2013. The new base of long term 
shareholders combined with its new banking facilities 
(see note 14) puts the Group in a robust position to 
continue its growth through new site acquisitions  
and developments as set out in its strategy on listing.
The Group’s strategy is to grow principally by the 
acquisition and development of individual and groups 
of sites. There has been significant progress in this regard 
with the leasehold of Coalition acquired in Brighton in 
October 2013, the freehold of Coyote Wild in Derby 
re-opened as a Lola Lo in April 2014, a new lease on 
Deansgate Locks Manchester opened as the ninth Lola 
Lo in December 2013, Madame Geisha (an existing site) 
in Brighton was closed and was refurbished as the 
Group’s first Dirty Blonde and Lowlander (leasehold) 
acquired in Covent Garden. The acquisition of 
Lowlander (through the acquisition of Newman Bars Ltd) 
brought not only a high quality central London site,  
but also expertise in food. We anticipate utilising this 
concept in other locations. Consequently, our estate  
has grown by 4 bars in the period.
The premium bar market remains fragmented and 
continues to present the Group with a significant 
opportunity to grow, albeit in a measured and prudent 
way. The Group’s focus will continue to be providing 
premium bars for young, sophisticated professionals and 
students who are seeking added value through superior 
service and a high quality experience. We remain 
focussed on delivering the most aspirational venue 
available in any given location.
The financial highlights are fully reported on in the 
strategic report; however I am pleased with the progress 
for the year.
The Group is well financed, having repaid out of the 
proceeds of the listing £7.3 million of shareholder debt  
at the time of the IPO. Net debt at the period end stood 
at £2.0 million (2013: £8.2 million). To finance our growth 
the Group has extended its revolving credit facility with 
Barclays Bank from £1.5 million to £5 million.
Since the year end we have signed leases for two  
new sites in Sheffield and Liverpool. Additionally,  
after the year end, a major investment was made in 
refurbishing and reconfiguring Embargo renaming it 
Embargo Republica. Eclectic continues to consider 
single site and asset group acquisitions and currently  
has a good pipeline of sites.
I am pleased to announce that the Group intends to  
pay a special dividend in the current financial year of 
2.5p per share.
6634 Eclectic AR 2014_5 _TP.indd   2 31/10/2014   13:09 Strategic Report
Eclectic Bar Group plc Annual Report 2014 03
Board
One of the Group’s key objectives was to enhance  
the balance, skills and compliance of the Board through  
the selection of appropriately qualified independent 
Non-Executive Directors. I am delighted to welcome 
Clive Watson to the Board who joined on listing,  
Richard Kleiner was appointed on 1 February 2014 and 
Leigh Nicolson 28 July 2014 having worked within the 
Group since 2006. Combined with the current directors 
the Board now has a combination of PLC experience 
and expertise as well as a deep understanding and 
knowledge of the sector which will serve it well for  
the future.
Outlook
The Board remains confident and excited about the 
future of the Group. Following the IPO we have the  
right financial structure to take advantage of the 
opportunities which may become available for further 
site or group acquisitions. We continue to innovate to  
be able to deliver the high quality experience that our 
sophisticated customer base expects. With the benefits 
of investment made and the new sites for the current 
year, we look forward to delivering further progress.
Jim Fallon
Chairman
30 October 2014
our estate has  
grown by 4 bars  
in the period
I am pleased to announce 
that the Group intends to 
pay a special dividend in 
the current financial year 
of 2.5p per share
4
2.5p
6634 Eclectic AR 2014_5 _TP.indd   3 31/10/2014   13:09 04 Eclectic Bar Group plc Annual Report 2014
Eclectic Bar Group plc (the Group), 
is a leading operator of 23 (21 at the 
end of the financial year) premium 
bars located in major towns and 
cities across the UK.
ChIEF ExECUTIvE’S 
REvIEW
Reuben Harley
Chief Executive Officer
Eclectic Bar Group plc (the Group), is a leading operator 
of 23 (21 at the end of the financial year) premium bars 
located in major towns and cities across the UK. 
The Group trades across its estate under a variety of 
concepts including Embargo Republica, Lola Lo, Sakura, 
Po Na Na, Fez Club, Lowlander and Coalition. The Group 
predominantly targets a customer base of sophisticated 
students midweek and stylish over 21s and professionals 
at the weekend. The Group focuses on delivering added 
value for its customers, with premium product ranges, 
high quality music and entertainment and a 
commitment to high service standards. 
Eclectic Bar Group plc began trading on 19 November 
2013, and was formed to acquire all the share capital  
of Eclectic Bars Limited, in a share for share exchange. 
On 28 November, Eclectic Bar Group plc listed on AIM,  
a part of the London Stock Exchange. The Group raised 
£10.5 million in new equity, which was used to pay costs 
of £1.4 million (£0.8 million of costs were directly related 
to the issue of new shares and £0.6 million to the cost  
of listing and the reorganisation) and to repay the 
shareholder loan and interest of £7.4 million, leaving  
£1.7 million in cash for the Group to fund organic growth 
prospects and the acquisition of new sites and small 
groups of sites.
The Group’s strategy
The primary expected avenue of growth for the Group 
over the coming years is through the acquisition and 
development of new sites and small groups of sites 
together with a new focus on driving further food 
revenues into the bar estate. 
Eclectic’s business platform provides the perfect 
framework for the variety of venues that the Group owns. 
This variety in our businesses enables us to pick the right 
concept for the location and community within which  
it is situated, whilst maintaining the Group’s focus on  
a premium customer base and standardisation of 
processes and supply.
It is anticipated that the majority of new sites will be in 
major cities and towns where there is also a university 
population. The Group targets a 30 percent EBITDA 
return on new acquisitions and 25 percent on 
redevelopments of existing sites in the first 12 months 
post-acquisition or re-development. The Group is 
targeting the addition to its portfolio of two to three  
new sites per annum, and currently has a strong pipeline 
in place. 
The Group finances its new acquisitions and 
developments with cash generated from operating 
activities and bank funding as appropriate.
Eclectic’s estate has a national geographic spread in 
key university cities and towns which provide a vibrant 
night time economy and the demographics to support 
premium bars.
6634 Eclectic AR 2014_5 _TP.indd   4 31/10/2014   13:09 Strategic Report
Eclectic Bar Group plc Annual Report 2014 05
Review of The Group’s activities during the year
The estate has continued to be developed during the 
reporting period. Eclectic acquired 4 new venues and 
carried out the refit of one existing site:
•	 	 C o a l i t i o n 	 B a r 	 i n 	 B r i g h t o n, Eclectic’s 18th site, was 
acquired in October 2013. Located in the Kings Road 
Arches on the sea front, the venue has a large outside 
terrace on the beach, a 24 hour licence and a 
capacity of 600. It is open five nights a week, and 
regularly hosts live music events and headline DJ acts. 
The enviable location coupled with the large beach 
terrace gives great opportunities for food, drinks  
and events. 
•	 	 C o y o t e 	 W i l d 	 i n 	 D e r b y, the Group’s 19th venue, was also 
acquired in October 2013. This freehold site is a listed 
building on three floors, located in Derby city centre. 
This has been converted into The Group’s Lola Lo brand 
and opened in April 2014. The traditional Lola Lo music 
mix of credible club classics and contemporary beats 
provides night-time entertainment, along with regular 
club nights and live performances. The introduction of 
the “Island Grill” menu is typically Tiki and encourages 
early evening diners to the venue.
•	 	 M a n ch es t e r 	 D e a n sg a t e 	 L ock s, Eclectic’s 20th site, 
opened as a Lola Lo in the middle of December on the 
same stretch as Sakura (which opened on the Locks  
in October 2010). The 560 capacity venue is on three 
levels and includes three bars and two DJ booths, 
together with quirky features such as a “dress up box” 
in the high energy area on the lower ground floor and 
the first shop selling branded T-shirts and all things Tiki 
– puffer-fish lampshades, books and the brand’s 
highly-desirable signature Tiki mugs. This venue offers 
food from the “Island Grill” menu featuring a similar 
food offering to Derby. 
•	 	 M a d a m e 	 G e i s h a 	 i n 	 B r i g h t o n was acquired in March 
2013, and was re-launched at the end of March 2014, 
showcasing Eclectic’s newest “speakeasy” concept, 
Dirty Blonde. The external appearance of the business 
appears as a pawnbroker’s shop behind which is  
two floors of bars and booth seating for drinking and 
casual dining. The food offering incorporates dishes 
from the five boroughs of New York together with an 
extensive range of spirits, champagnes, wines and 
beers on offer. 
•	 	 L o w l a n d e r 	 G r a n d 	 Ca f é bar and brasserie in London’s 
Covent Garden, was acquired at the end of March 
2014. Lowlander is a Belgian Grand Café providing an 
all-day offer with a strong food element and a vast 
selection of predominantly Belgian speciality and craft 
beers. The business is very well established with a strong 
presence in Covent Garden and provides the basis  
for a national roll out over time. The customer base  
is in line with the other businesses in the Group and 
cross-selling opportunities will offer synergy benefits.
O u t l o o k 	 a n d 	 s i g n i fi c a n t	 e v e n t s 	 t h a t 	 h a v e 	 t a k e n 	 p l a c e	
since the year end
The Group will continue to seek and identify 
development opportunities across its existing estate  
to enhance the profitability of the Group. 
The Group operates in a fragmented marketplace with 
strong potential to grow by site acquisition and purchase 
of small groups across the UK’s major conurbations.
Since the year end the Group has: 
•  Signed an “agreement to lease” on a 20 year term a 
new site in Liverpool. The Group intends to develop this 
unit in the financial year ending June 2015 to Lola Lo, 
bringing the total number of Lola Lo units to 11. The new 
acquisition is subject to the satisfactory outcome of 
planning and licensing applications.
•  Signed a new 20 year lease on a site in Sheffield, 
bringing the total number of sites to 23. The property is 
situated on the popular West Street, set over two levels 
with ground floor and first floor totalling 6,500 square 
feet and also includes its own exclusive outside area. 
The Group intends to develop this unit in the financial 
year ending June 2015 to a Lola Lo and will include  
the Group’s popular ‘Island Grill’ food offering. 
6634 Eclectic AR 2014_5 _TP.indd   5 31/10/2014   13:09 06 Eclectic Bar Group plc Annual Report 2014
ChIEF ExECUTIvE’S REvIEW
continued
•  On 18 July 2014 a new intermediate holding company 
was formed called Eclectic Icon Ltd. This company  
is a 100% subsidiary of Eclectic Bar Group plc. 
  In a share sale and purchase agreement dated  
24 July 2014 Eclectic Bar Group plc agreed to transfer 
100% of its holding in Eclectic Bars Ltd (6,300,000 
ordinary shares of £0.0001) to Eclectic Icon Limited  
in return for the allotment and issue of 14,999,999 
ordinary shares in that company. 
  On the same day Eclectic Icon Ltd carried out a 
capital reduction whereby its share capital was 
reduced from £15,000,000 divided into 15,000,000 
shares of £1.00 each to £1,500,000 divided into 
15,000,000 shares of £0.10 each, thereby creating 
£13,500,000 of realised profits which would be 
available in the future for distribution by way  
of dividends to Eclectic Bar Group plc.
•  Finally, the Group has also concluded a significant 
extension on the Embargo Republica, Kings Road  
lease to 2033. The club and terrace space has been 
upgraded and the venue refitted over the summer  
to include the facility for the introduction of live music 
and fully reopened at the end of August 2014.
Finance review
The key highlights on the trading for the year are:
•  Revenue on continuing operations was up 11.7%  
at £23.0 million (2013: £20.6 million).
•  Revenue including discontinued operations was  
up 10.1% at £23.3 million (2013: £21.2 million).
•  Group EBITDA on all operations before highlighted 
items was £2.9 million (2013: £2.8 million).
•  Group EBITDA on all operations after highlighted  
items was £1.7 million (2013: £2.8 million).
•  Group EBITDA on continuing operations before 
highlighted items was up 14.1% at £2.6 million  
(2013: 2.2 million).
•  Group EBITDA on continuing operations after 
highlighted items was £1.3 million. (2013: £2.2 million). 
•  Profit before tax and highlighted items increased  
to £1.0 million up 10.0% on the prior year  
(2013: £0.9 million).
•  Loss before tax and after highlighted items was  
£0.2 million (2013: profit of £0.9 million). 
•  The loss after tax and highlighted items was £0.3 million 
(2013: profit of £0.6 million).
•  Adjusted earnings per share basic and diluted  
on all operations was 9.4 pence per share – before 
discontinued operations 6.9 pence per share.
•  Loss per share basic and diluted on all operations  
was -2.7 pence per share and before discontinued 
operations -5.2 pence per share.
Profit before tax and 
highlighted items increased  
to £1.0 million up 10.0%  
on the prior year  
(2013: £0.9 million) 
10.0%
At the end of July 2012, 
Eclectic entered into a 
management contract 
to operate 33 restaurants, 
bars and nightclubs on 
behalf of PBR Leisure Limited
33
6634 Eclectic AR 2014_5 _TP.indd   6 31/10/2014   13:10 Strategic Report
Eclectic Bar Group plc Annual Report 2014 07
At the end of July 2012, Eclectic entered into a 
management contract to operate 33 restaurants, bars 
and nightclubs on behalf of PBR Leisure Limited. This  
14 month contract ended on 20 October 2013, after  
PBR successfully disposed of The Living Room business 
and a number of other sites. The results from these 
operations are shown in the income statement as 
discontinued. Further disclosures are provided in  
note 10 of the financial statements.
Balance sheet
In December 2013 the Group repaid all outstanding 
capital and interest in relation to the previous 
shareholder loan totalling £7.4 million.
On the 18 March 2014 the Group agreed new banking 
facilities with Barclays Bank increasing its Revolving 
Credit Facility (RCF) from £1.5 million to £5 million, with 
improved interest terms and simplified covenants.  
This will now provide the Group with additional cash 
resources to take advantage of acquisition opportunities 
when they arise.
At the period end the Group had:
•  an outstanding term facility of £0.8 million  
(2013: £1.4 million), with repayments of £0.65 million  
due to be repaid within the next 12 months and  
the remaining amount to be repaid after the next  
12 months
•  an RCF facility of £5.0 million with £1.7 million drawn 
(2013: £nil), and 
• cash balances of £0.5 million (2013: £0.6 million).
Key performance indicators
The Groups key performance indicators are focused on 
the continued expansion of the Group to drive revenues 
and EBITDA growth. Through this growth the Group will 
be able to offer good career prospects for our staff and 
great food, drink and entertainment for our premium 
customers and ensure regular dividends are paid to  
our shareholders.
New site acquisitions
The Group continues to acquire and develop new sites 
and we believe the key to this success is to focus on the 
best locations, good rent cover and the right concept  
for the customer and location.
• We have acquired 4 new sites this year.
•  We focus on the long term quality of new site 
acquisitions rather than the quantity of units acquired.
Group EBITDA on  
continuing operations 
before highlighted items 
was up 14.1% at £2.6 million  
(2013: £2.2 million)
14.1%
Group Revenue performance versus the prior period;
The Group will continue to drive sales through acquisition 
and development, together with a strong focus over  
the coming year to further increase food sales where  
the opportunity arises.
•  Revenue on continuing operations was up 11.7%  
at £23.0 million (2013: £20.6 million).
•  Total revenue including discontinued operation  
was up 10.1% at £23.3 million (2013: £21.2 million).
•  The Group intends to pay 2.5 pence as a special 
dividend.
Growth in Group EBITDA on continuing operations  
before highlighted items
EBITDA is a key valuation metric for the valuation of the 
Group’s business.
We continue to focus on driving site EBITDA through  
new acquisitions and developments
•  Group EBITDA on all operations before highlighted 
items was £2.9 million (2013:£2.8 million).
•  Group EBITDA on all operations after highlighted items 
was £1.7 million (2013:£2.8 million).
6634 Eclectic AR 2014_5 _TP.indd   7 31/10/2014   13:10 08 Eclectic Bar Group plc Annual Report 2014
PRINCIPAL RISKS  
AND UNCERTAINTIES
Key risks Risk description M i t i g a t i n g 	 a c t i o n s 	 a n d 	 a ch i e v e m e n t s 	 d u r i n g 	 t h e 	 y e a r
Business  
and resulting 
fi nan ci a l 	 r i sk
Failure to 
acquire and  
or develop 
new sites
This Group’s ability to open new sites, to 
operate these sites on a profitable basis 
and to introduce its business concepts 
successfully into new locations (or develop 
an acquired brand) is a major part of the 
future success of the Group. 
Failure to acquire or develop new sites 
would financially impact the future 
earnings of the Group.
During the year we have continued to put 
considerable focus on:
•  launching our landlord pack and annual 
reception to show case the variety of our 
business concepts to property agents and 
landlords to increase our presence in the 
property market place.
•  new concept development continued this  
year with the launch of Dirty Blonde in Brighton 
and also the acquisition of Lowlander on  
Drury Lane. Both of these food led businesses 
will increase the reach and opportunities for 
new sites in all of our target cities.
Business  
and resulting 
fi nan ci a l 	 r i sk
Competition 
and changing 
consumer 
habits
The bars market in the UK is a vibrant, 
exciting and continuously changing 
market place. 
There is no certainty that the Group  
will continue to achieve the market 
penetration it seeks.
There is no certainty that the Group  
will be able to respond to changes  
in consumer habits.
Failure to respond to changing market 
conditions and consumer habits could 
impact the future earnings of the Group.
During the year we have continued to focus on:
•  the mystery shopper programme, to ensure 
each venue we open provides the experience 
our customers have come to expect. Average 
scores for all sites this financial year were an 
all-time high for the Group. 
•  holding regular focus groups to understand  
the changing needs of our customers.
•  staff development, and training to improve 
delivery at the point of sale.
•  refining our concepts to broaden our appeal  
to a wider audience with the acquisition  
of Lowlander and the development of  
Dirty Blonde. 
•  ensuring our mix of music and entertainment  
is relevant to our customers.
•  improving the variety and quality of products 
that we sell.
•  developing significantly the Group’s 
engagement via digital platforms and social 
media channels. We see this as a key part of 
our marketing and communication strategy 
with our consumers. The Group has seen like  
for like increases in users across all the major 
social media channels.
6634 Eclectic AR 2014_5 _TP.indd   8 31/10/2014   13:10 Strategic Report
Eclectic Bar Group plc Annual Report 2014 09
Key risks Risk description M i t i g a t i n g 	 a c t i o n s 	 a n d 	 a ch i e v e m e n t s 	 d u r i n g 	 t h e 	 y e a r
Business risk
Failure to 
recruit the best 
management 
for our venues
The competitive nature of the market for 
the best people is fiercely competitive. 
The recent flotation of the Group on AIM has 
helped to showcase our business to prospective 
employees.
Our new training programmes this year have 
included:
•  creating our Bar Academy training 
programme.
•  trainee management courses to encourage 
progress into management roles from within  
the Group.
•  Competitive remuneration and profit sharing 
schemes for all staff.
Regulatory risk
Failure to 
comply with  
the complex 
regulations in 
place over the 
bar industry  
in the United 
Kingdom.
The Group’s bars are subject to laws and 
regulations that affect their operations, 
including in relation to employment, 
minimum wages, premises and personal 
licenses, alcoholic drinks control, 
entertainment licences, competition, 
health and safety, sanitation and data 
protection.
The focus over the year has been on regular  
and ad hoc visits to our venues including:
•  regular control visits together with follow ups to 
ensure training and compliance at a local level.
•  annual health and safety checks from outside 
agencies ensure each venue we trade 
complies with current regulations. 
•  regular audits and training on fire and safety for 
all our staff. 
In addition we have further developed our  
online reporting system to gather important 
information from venues on a daily basis that 
relate to incidents or regulatory visits.
The Group’s focus on operational “rituals and 
routines” help to protect the Group in this highly 
regulated market place. 
Financial risk
The Groups 
financial 
performance  
is dependent 
on a number  
of key sites
The Group is dependent on a small 
number of key sites and loss of one  
of these sites would have an adverse  
impact on the Group’s profitability. 
The principle risk which cannot be mitigated  
by insurance relates to loss of a licence at a site.  
The Group works closely with licensing authorities 
and the police; this together with on line 
reporting systems help ensure the Group can 
react quickly to circumstances arising at 
individual sites.
As the Group grows the significance of these  
key sites will reduce.
By order of the Board
John Smith 
Company Secretary and Director 
30 October 2014
6634 Eclectic AR 2014_5 _TP.indd   9 31/10/2014   13:10 10 Eclectic Bar Group plc Annual Report 2014
BRANDS  
AND CONCEPTS
6634 Eclectic AR 2014_5 _TP.indd   10 31/10/2014   13:10 Strategic Report
Eclectic Bar Group plc Annual Report 2014 11
Fly free into a bounty paradise at Lola Lo, an intimate  
Tiki bar, which will transport you to a tropical oasis where 
the party goes on and on. At Lola Lo, we’ve taken a 
dazzling array of show stopping cocktails, champagnes 
and rums and mixed it with an intoxicating blend of 
credible club classics and contemporary beats and are 
serving it all in a setting that captures the pure essence  
of care-free South Pacific joie de vivre. 
From a stunning interior featuring bamboo,  
hand-carved woods, evocative lighting, unique 
dance floor and rustic decor to private booths  
and effervescent bar tenders.
Sakura pushes the boundaries with its dazzling blend  
of contemporary Japanese cool, sophistication and 
sheer glamour. With stylish interiors featuring dark woods, 
Eastern decor, sunken bar and stunning illuminated 
dance floors, Sakura is at the forefront of bar design. 
Big-name DJs are at the heart of the weekend  
offering whilst working closely with key promoters  
to bring credible, world class events to their respective, 
seriously-sussed clienteles and students alike.  
Sakura’s spectacular cocktails and drinks exemplify 
Eclectic’s premium-only philosophy.
Rhythm; colour; spirit and style: Embargo Republica 
captures Cuban exuberance like no other London 
venue. Offering an intoxicating mix of live music, luscious 
cocktails, the finest selection of rums this side of havana 
and a roof terrace that will sweep you away to the  
island itself, Embargo Republica brings you Cuba on  
the Kings Road. 
Grit and glamour fuse together to create a cool  
and contemporary Cuban backdrop: enter the  
club through the cigar shop to an interior shaped by 
exposed brickwork and timber, graffiti splashed on 
whitewashed walls, jazz club ceiling fans and eclectic 
vintage furniture. Music is at the beating heart of 
Cuban culture and a range of live bands, DJs and 
acoustic acts take to the stage each week.
Lowlander: a unique and unpretentious gem, embodying 
the inimitable hospitality and warmth of the Low 
Countries, the very source of its name, Lowlander is a 
modern, stylish and vibrant ‘Grand Café’ with a passion 
for traditional Belgian beer and cuisine at its heart. 
Lowlander will immediately captivate you with its 
continental charm: its timeless, archetypal Belgian  
bar and eye-catching collection of posters and 
placards, boasting the names of Belgium’s iconic 
beers and breweries on the surrounding walls. 
Lowlander offers an immense choice of over  
100 beers, styles range from supreme Belgian brews  
to lesser known artisan varieties.
Bar, restaurant, inspiration… Dirty Blonde is a delicious 
enigma, an intangible pleasure. Behind its deceptive 
pawn shop facade, Dirty Blonde channels elegant 
glamour with daring grandeur. From the vibrant upper 
and lower bars to the opulent dining area, an authentic 
roaring twenties late night speakeasy vibe rubs shoulders 
with contemporary cool. By day, an intimately lavish 
setting to eat, drink and relax. 
By evening, a seductive blend of sophisticated dining 
and fabulous cocktails. And later, a glittering nightlife 
emporium like than no other, hosting an eclectic  
mix of show stopping entertainment, live music and 
DJs. Presenting the decadent, the indulgent and  
the unexpected.
6634 Eclectic AR 2014_5 _TP.indd   11 31/10/2014   13:10 12 Eclectic Bar Group plc Annual Report 2014
DIRECTORS’ REPORT
The directors present their report and the audited 
financial statements for the 52 week period ended  
29 June 2014. 
Principal activities
Eclectic Bar Group plc, is a leading operator of  
23 (21 at the period end) premium bars located  
in major towns and cities across the UK. 
The Eclectic Group trades across its estate under a 
variety of business concepts including Embargo 59,  
Lola Lo, Sakura, Po Na Na, Fez Club, Lowlander and 
Coalition. These business concepts predominantly target 
a customer base of sophisticated students midweek and 
stylish over 21s and young professionals at the weekend. 
The Group focuses on delivering added value for its 
customers, with premium product ranges, high quality 
music and entertainment and a commitment to high 
service standards. 
Business Review and future developments
A review of the business, the future developments, 
including the principle risks and uncertainties of the 
Group is presented in the Strategic Report, within  
the Chairman’s Statement on page 2 and in the  
Chief Executive’s review on pages 4 to 7.
Going concern
The directors have a reasonable expectation that  
the Group has adequate resources to continue in 
operational existence for at least a period of 12 months 
since the Board approved these financial statements. 
Thus they continue to adopt the going concern basis  
of accounting in preparing the annual financial 
statements. The directors’ assessment of going concern 
can be found in note 1 to the financial statements.
D i re c t o r s
Detail of the Group’s main board directors, their roles 
and backgrounds are as follows:
Jim Fallon (Non-Executive Chairman)
Since 1994 Jim has worked almost exclusively within  
the leisure sector as a lender, adviser, owner, operator  
and most recently business consultant. Jim worked for 
Imperial Chemical Industries in electrical engineering  
for eight years prior to joining Midland Bank in 1991. he 
was at hSBC until 2002, latterly leading the leisure team, 
when he left to set up the consumer sector corporate 
finance advisory business McQueen Limited. he was 
specifically responsible for the leisure sector within 
McQueen as well as much of the day to day running  
of the business. Jim works as a consultant to a variety  
of UK leisure businesses through his company, 
Graybridge Solutions Limited.
Richard Kleiner (Non-Executive Director) 
Richard has significant corporate finance, financial 
services, accounting and taxation experience. he is 
executive director of AIM-quoted Avanti Capital plc  
and has been the managing partner at Gerald 
Edelman, Chartered Accountants, where he has been a 
partner since 1986. he was a founder of Gerald Edelman 
Financial Solutions Limited, the financial services arm  
of Gerald Edelman, acting for several years as its 
compliance officer. In addition, Richard has a wealth  
of corporate finance and business advisory experience 
gained from over 30 years as a practising accountant 
advising small and medium sized companies, including 
holding several non-executive directorships. he is a 
Fellow Member of the Institute of Chartered Accountants 
in England and Wales and is an Associate Member  
of the Life Assurance Association.
Richard is Chairman of the Audit committee and  
a member of the Remuneration committee.
Clive Watson (Non-Executive Director)
Clive qualified as a chartered accountant with Price 
Waterhouse in London in 1986 then joined the investment 
bank Manufacturers hanover Limited where he spent 
three years. he joined Regent Inns plc as Finance 
Director and Company Secretary in 1990. Clive left 
Regent Inns plc in 1998 and cofounded Tup Inns Limited 
where he was responsible for financial and commercial 
matters as well as acquisitions. Clive was appointed in 
2000 as Finance and Commercial Director of The Capital 
Pub Company PLC which was admitted to trading on 
AIM in 2007. In 2008 he was appointed Chief Executive 
and oversaw the sale to Greene King plc in 2011 for  
£93 million. he then set up and became Chief Executive 
of The City Pub Company in 2012 under the Enterprise 
Investment Scheme which operates a portfolio of pubs  
in cities and large market towns in the south of England.
Clive is Chairman of the Remuneration Committee and 
a member of the Audit Committee
Reuben harley (Chief Executive Officer)
Reuben has worked in the UK pub and bar industry for 
over 25 years. his career started at Grand Metropolitan plc 
before becoming an area manager at Greenalls Inns  
in the late 1990s. Between 1998 and 2004 he worked  
at SFI Group PLC, where he moved through the roles  
of Operations Manager, Regional Manager, Brand 
Manager of the Litten Tree brand in the South of 
England, subsequently Brand Manager nationally for the 
Bar Med brand and then Divisional Director responsible 
for the disposal division of 62 sites. Prior to joining Eclectic 
Bars Limited as CEO in June 2006 he was Business 
Development Director for The Nightclub Company.
6634 Eclectic AR 2014_5 _TP.indd   12 31/10/2014   13:10 Governance
Eclectic Bar Group plc Annual Report 2014 13
Leigh Nicolson – Chief Operating Officer 
Leigh has worked in a variety of operational roles in  
the UK bar market for approximately 20 years. After  
four years working for Yates Group PLC at the site level 
he moved to work for Fuller, Smith & Turner PLC in London 
across their high street branded bars business. Following 
this he spent two years with Inventive Leisure PLC, before 
joining SFI Group PLC as a new openings manager for 
their new template brand where he was responsible  
for a number of new site openings nationwide. Leigh 
then joined The Nightclub Company in 2005 where he  
worked on the introduction of the Cantaloup bar brand, 
before joining Eclectic Bars Limited in 2006 as area 
manager for the London area. his role developed  
to become national operations manager, he was 
appointed operations director for the Eclectic Group  
in 2010, and in July 2014 he was appointed to the Board  
of Eclectic Bar Group plc as Chief Operating Officer.
John Smith (Chief Financial Officer)
Since qualifying as a chartered accountant with  
Touche Ross & Co in 1985 John has held a variety  
of senior finance roles. From head of Finance at 
International Currency Exchange plc he then became 
Group Finance Director at v ision Express until it was  
sold to Grand v ision in 1997. After two years as Joint  
UK Managing Director of v ision Express post the 
acquisition he then became Finance Director of  
First Leisure Corporation plc in 1999, before becoming 
Chief Executive in 2003, and then Chief Executive of  
The Nightclub Company which was created by the 
purchase of 22 nightclubs from the receiver of First 
Leisure. John became Finance Director of Eclectic Bars 
Limited in June 2006.
D i r e c t o r s 	 a n d 	 ot h e r 	 r e l a t e d 	 p a r t y 	 t r a n sa c t i o n s
Internal controls are in place to ensure that any related 
party transactions involving directors or other connected 
persons are carried out on an arm’s length basis and  
are properly recorded. 
Lowlander
On the 26 March 2014 the Group exchanged  
contracts to acquire Lowlander Bar and Brasserie  
in Covent Garden, London.
The Lowlander business was held through two 
companies, Newman Bars Limited (‘Newman’) and 
Chalice Bars Limited (‘Chalice’). The Group acquired 
100% of Newman, and a 33% minority interest in its 
subsidiary Chalice for a consideration of £850,000. 
Newman owned 67% of Chalice and therefore the 
Group now own 100% of both companies.
Jim Fallon, the company’s Chairman, was a 34.17% 
shareholder in the businesses being acquired and 
therefore the acquisition of Lowlander constituted a 
related party transaction under Rule 13 of the AIM Rules. 
The company’s directors (excluding Jim Fallon) consider 
that, having consulted with Panmure Gordon (UK) 
Limited, the company’s nominated adviser, the terms  
of the acquisition of Lowlander are fair and reasonable 
in so far as the company’s shareholders are concerned.
Jim Fallon received £190,445 in cash and £100,000  
cash equivalent in Eclectic shares. These shares are 
subject to the same restrictions outlined in the Placing 
Agreement as set out on page 81 of the company’s 
Admission Document.
Sh a r e ho l de r 	 L o a n
On 3 December 2013, the Group repaid the full 
outstanding loan balance of £7,302,782 plus outstanding 
interest of £122,807 to Avanti Capital Plc, the former 
ultimate controlling company of Eclectic Bars Limited 
and its subsidiaries.
Financial Instruments
The Group’s financial risk management objectives  
are outlined in note 25.
D i sa b l e d 	 e m p l o y e es
The Group gives full consideration to applications  
for employment from disabled persons where the 
candidate’s particular aptitudes and abilities are 
consistent with adequately meeting the requirements  
of the job. Opportunities are available to disabled 
employees for training, career development  
and promotion.
Where existing employees become disabled, it is  
the Group’s policy to provide continuing employment 
wherever practical in the same or alternative position 
and to provide appropriate training to achieve this aim.
Employee involvement
The Group operates a framework for employee 
information and consultation that complies with the 
requirements of the Information and Consultation of 
Employees Regulation 2005.
Information for all employees under a contract of service 
with the Group is available via the Group’s intranet, 
employee hand book and through their direct line 
Manager. Management meetings take place quarterly 
at which information relevant to Group’s financial 
performance is communicated. Conferences are  
held bi-annually which celebrate the performance of 
outstanding individuals and help to showcase important 
developments in the Group.
6634 Eclectic AR 2014_5 _TP.indd   13 31/10/2014   13:10 14 Eclectic Bar Group plc Annual Report 2014
DIRECTORS’ REPORT
continued
Employees are encouraged to participate in a variety  
of schemes which enable employees to benefit from the 
commercial success of the Group. At the date of listing 
the company introduced a new Company Share Option 
Scheme in which long serving managers were awarded 
with options in the company and all management 
teams and staff at our head office participate in profit 
sharing schemes which reward performance in excess  
of budgets.
D i r e c to r ’ s 	 r em u n e r a t i on
The remuneration of the directors for the year ended  
29 June 2014 is as follows:
Basic
 salary &
 fees
£’000
Bonus
£’000
Ben efi ts
£’000
2014
£’000
2013
£’000
Reuben harley 190 110 19 319 414
John Smith 171 75 14 260 245
Jim Fallon 35 – – 35 – 
Clive Watson 18 – – 18 –
Richard Kleiner 13 – – 13 –
Total 427 185 33 645 659
The above figures represent the due proportion of  
each director’s annual salary reflecting the period 
during the year for which each director was a member 
of the Board.
There were no payments made into defined benefit 
schemes in respect of the year.
Reuben harley and John Smith were granted options  
in the Company Share Option scheme see the details  
in the note below.
D i r e c t o r ’ s 	 i n t e r es t s 	 i n 	 t h e 	 s h a r e 	 c a p i t a l 	 o f 	 t h e 	 c o m p a n y
As at the date of this report the directors held the 
following beneficial interests in the share capital of  
the company.
D i r e c t o r
Percentage of
 share capital
Number of
 ordinary shares Note
Reuben harley 14.4% 1,856,920 (i)
John Smith 8.5% 1,103,719 (ii)
Leigh Nicolson 
(appointed  
29 July 2014) 1.1% 144,750 (iii)
Jim Fallon 3.3% 422,116
Richard Kleiner 0.2% 30,000 (iv)
Clive Watson 0.2% 31,250
Note 
(i) Reuben harley 12,500 shares held by a connected party
  40,625 share options in the Company Share 
Option scheme not included above
(ii) John Smith 199,031 shares held by pension scheme
  40,625 share options in the Company Share 
Option scheme not included above
(iii) Leigh Nicolson  156,249 share options in the Company 
Share Option scheme not included above
(iv) Richard Kleiner 17,500 shares held by a connected party
D i r ect o r s 	 Lia b i l i t ies
The Group has not granted any indemnity to any of its 
directors against liability in respect of proceedings by 
third parties. The Group does have in place Directors 
and Officers Liability insurance.
Political and charitable donations
The Group made no political or charitable donations 
during the year.
Share capital
The company’s issued ordinary share capital as at  
29 June 2014 comprised a single class of £0.25 ordinary 
shares of which 12,922,741 shares were in issue and  
listed on AIM (at the date of listing (29 November 2013) 
12,862,500 shares). 
60,421 of new ordinary shares were issued and admitted 
to trading on the 3 April 2014. These shares were issued  
at a price of £1.66 per ordinary share to Jim Fallon, the 
company’s Chairman equating to part consideration  
of £100,000 for his interest in Lowlander, which was sold 
to the Group on the 26 March 2014.
Options over a further 871,005 shares exist within the 
Employee Share Option scheme (see note 19 to the 
financial statements).
Of the issued share capital, no shares were held  
in treasury. 
Details of movements in the issued share capital  
can be found in note 18 to the financial statements.
Each share carries the right to one vote at general 
meetings of the company. 
The directors have undertaken in the Placing Agreement 
to Panmure Gordon not to dispose of any interest in any 
of their Ordinary Shares for 12 months from Admission 
except in certain limited circumstances. For a further 
period of 12 months, the directors have agreed to an 
orderly market arrangement in respect of the Ordinary 
Shares they hold at Admission.
6634 Eclectic AR 2014_5 _TP.indd   14 31/10/2014   13:10 Governance
Eclectic Bar Group plc Annual Report 2014 15
Interests in voting rights
As at the date of this report, the company was aware  
of the following significant holdings of voting rights  
(3% or more) in its shares:
Other major shareholders
Percentage of
 share capital 
Number of 
ordinary shares
Schroder Investment 
Management 20.1% 2,600,000
helium Special  
Situations Fund 16.5% 2,127,720
hargreave hale 11.8% 1,523,125
Amati Global Investors 3.7% 479,000
Peter Kemp-Welch 4.2% 541,250 
An n ua l 	 G e n e r a l 	 M e et i n g
The notice convening the Annual General Meeting is 
contained in a circular sent to shareholders with this 
report and includes full details of the resolutions proposed.
Events since the balance sheet date
These are detailed in the Chairman’s Statement  
on page 2 and in the Chief Executive’s review on  
pages 4 to 7.
Auditor
Ernst & Young LLP has expressed its willingness to 
continue in office as auditor of the company and its 
reappointment will be put to shareholders at the AGM.
D i scl osu r e 	 o f 	 i n fo r m a t i o n 	 t o 	 a ud i t o r
having made the requisite enquiries, so far as the 
directors are aware, there is no relevant audit 
information (as defined by Section 418(3) of the 
Companies Act 2006) of which the company’s auditor  
is unaware and each director has taken all steps that 
ought to have been taken to make themselves aware  
of any relevant audit information and to establish that 
the company’s auditor is aware of that information.
By order of the Board
John Smith
Company Secretary and Director 
30 October 2014
6634 Eclectic AR 2014_5 _TP.indd   15 31/10/2014   13:10 16 Eclectic Bar Group plc Annual Report 2014
DIRECTORS’ RESPONSIBILITY STATEMENT
The Directors are responsible for preparing the Annual 
Report and the financial statements in accordance  
with applicable law and regulations.
In preparing the Group financial statements, the 
directors are required to: 
•  present fairly the financial position, financial 
performance and cash flows of the Group; 
•  select suitable accounting policies in accordance  
with IAS 8: Accounting Policies, Changes in Accounting 
Estimates and Errors and then apply them consistently; 
•  present information, including accounting policies, in  
a manner that provides relevant, reliable, comparable 
and understandable information; 
•  make judgements and estimates that are reasonable;
•  provide additional disclosures when compliance  
with the specific requirements in IFRSs as adopted by 
the European Union is insufficient to enable users to 
understand the impact of particular transactions, other 
events and conditions on the Group‘s financial position 
and financial performance;
•  state whether the Group financial statements have 
been prepared in accordance with IFRSs as adopted 
by the European Union, subject to any material 
departures disclosed and explained in the financial 
statements.
The Directors are responsible for keeping adequate 
accounting records that are sufficient to show and 
explain the Group’s transactions and disclose with 
reasonable accuracy at any time the financial position 
of the Group and enable them to ensure that the 
financial statements comply with the Companies Act 
2006. They are also responsible for safeguarding the 
assets of the Company and hence for taking reasonable 
steps for the prevention and detection of fraud and 
other irregularities.
The Directors are responsible for the maintenance  
and integrity of the corporate and financial information 
included on the Company’s website.
Legislation in the United Kingdom governing the 
preparation and dissemination of financial statements 
may differ from legislation in other jurisdictions.
6634 Eclectic AR 2014_5 _TP.indd   16 31/10/2014   13:10 Governance
Eclectic Bar Group plc Annual Report 2014 17
INDEPENDENT AUDITOR’S REPORT 
to the members of Eclectic Bar Group plc
We have audited the financial statements of Eclectic Bar 
Group Plc for the year ended 29 June 2014 which 
comprise the Consolidated Income Statement,  
the Consolidated Balance Sheet, the Consolidated 
Statement of Cash Flows, the Consolidated Statement  
of Changes in Equity, the Parent Company Income 
Statement and the Parent Company Balance Sheet  
and the related notes 1 to 29 in the Consolidated 
Financial Statements and related notes 1 to 10 in the 
Parent Company Financial Statements. The financial 
reporting framework that has been applied in the 
preparation of the consolidated financial statements  
is applicable law and International Financial Reporting 
Standards (IFRSs) as adopted by the European Union.  
The financial reporting framework that has been applied 
in the preparation of the parent company financial 
statements is applicable law and United Kingdom 
Accounting Standards (United Kingdom Generally 
Accepted Accounting Practice).
This report is made solely to the company’s members,  
as a body, in accordance with Chapter 3 of Part 16  
of the Companies Act 2006. Our audit work has been 
undertaken so that we might state to the company’s 
members those matters we are required to state to them 
in an auditor’s report and for no other purpose. To the 
fullest extent permitted by law, we do not accept or 
assume responsibility to anyone other than the company 
and the company’s members as a body, for our audit 
work, for this report, or for the opinions we have formed. 
Respective responsibilities of directors and auditor
As explained more fully in the Directors’ Responsibilities 
Statement set out on page 14, the directors are 
responsible for the preparation of the financial 
statements and for being satisfied that they give a true 
and fair view. Our responsibility is to audit and express  
an opinion on the financial statements in accordance 
with applicable law and International Standards on 
Auditing (UK and Ireland). Those standards require us  
to comply with the Auditing Practices Board’s Ethical 
Standards for Auditors.
Sc o p e 	 o f 	 t h e 	 a ud i t 	 o f 	 t h e 	 fi n a n ci a l	 s t a t e m e n t s
An audit involves obtaining evidence about the amounts 
and disclosures in the financial statements sufficient to 
give reasonable assurance that the financial statements 
are free from material misstatement, whether caused by 
fraud or error. This includes an assessment of: whether 
the accounting policies are appropriate to the Group’s 
and the parent company’s circumstances and have 
been consistently applied and adequately disclosed; 
the reasonableness of significant accounting estimates 
made by the directors; and the overall presentation of 
the financial statements. In addition, we read all the 
financial and non-financial information in the Strategic 
Report and Director’s Report to identify material 
inconsistencies with the audited financial statements 
and to identify any information that is apparently 
materially incorrect based on, or materially inconsistent 
with, the knowledge acquired by us in the course  
of performing the audit. If we become aware of any 
apparent material misstatements or inconsistencies  
we consider the implications for our report.
O p i n i o n 	 o n 	 fi n a n ci a l	 s t a t e m e n t s
In our opinion:
•  the financial statements give a true and fair view of  
the state of the Group’s and of the parent company’s 
affairs as at 29 June 2014 and of the Group’s loss for  
the year then ended;
•  the Group financial statements have been properly 
prepared in accordance with IFRSs as adopted by  
the European Union; and 
•  the parent company financial statements have been 
properly prepared in accordance with United Kingdom 
Generally Accepted Accounting Practice; and
•  the financial statements have been prepared in 
accordance with the requirements of the Companies 
Act 2006.
Opinion on other matters prescribed by the  
Co m p a n i es 	 A c t 	 2 0 0 6
In our opinion the information given in the Strategic 
Report and the Directors’ Report for the financial year for 
which the financial statements are prepared is consistent 
with the financial statements.
M a t t e r s 	 o n 	 w h i ch 	 w e 	 a r e 	 r e q u i r e d 	 t o 	 r e p o r t 	 b y 	 e x c e pt i o n
We have nothing to report in respect of the following 
matters where the Companies Act 2006 requires us to 
report to you if, in our opinion:
•  adequate accounting records have not been kept by 
the parent company, or returns adequate for our audit 
have not been received from branches not visited by 
us; or
•  the parent company financial statements are not in 
agreement with the accounting records and returns; or
•  certain disclosures of directors’ remuneration specified 
by law are not made; or
•  we have not received all the information and 
explanations we require for our audit.
J ul i e 	 Ca r l yle	
(Senior statutory auditor)
for and on behalf of Ernst & Young LLP, Statutory Auditor
London 
30 October 2014
Notes
1.  The maintenance and integrity of the Eclectic Bar Group plc website  
is the responsibility of the directors; the work carried out by the auditors  
does not involve consideration of these matters and, accordingly, the 
auditors accept no responsibility for any changes that may have occurred  
to the financial statements since they were initially presented on the website.
2.  Legislation in the United Kingdom governing the preparation and 
dissemination of financial statements may differ from legislation in other 
jurisdictions.
6634 Eclectic AR 2014_5 _TP.indd   17 31/10/2014   13:10 18 Eclectic Bar Group plc Annual Report 2014
CONSOLIDATED INCOME STATEMENT
For the period the 52 week period ended 29 June 2014
 
 Notes
52 weeks
 ended
29 June
2014
£’000
D i s c o n t i n ue d
 operations
£’000
Total including
 discontinued
 operations
£’000
53 weeks
 ended
30 June 2013
 Restated*
£’000
Discontinued
 operations
£’000
Total including
 discontinued 
operations
Restated*
£’000
Revenue 22,958  371  23,329  20,551  646  21,197 
Cost of sales (5,011) – (5,011) (4,334) – (4,334)
       
G r os s 	 p r o fi t 17,947  371  18,318  16,217  646  16,863 
       
Operating expenses – 
excluding highlighted items 8 (16,828) (42) (16,870) (15,126) (91) (15,217)
Operating expenses – 
highlighted items 6 (1,225) – (1,225) (30) – (30)
       
T o t a l 	 o p e r a t i n g 	 e x p e n ses (18,053) (42) (18,095) (15,156) (91) (15,247)
Operating profit – before 
highlighted items 1,119  329  1,448  1,091  555  1,646 
highlighted items – operating 
expenses 6 (1,225) – (1,225) (30) – (30)
       
O p e r a t i n g 	 p r o fi t / ( l os s ) (106) 329  223  1,061  555  1,616 
       
Finance revenue 8 3 –  3  2 –  2 
Finance cost 8 (407) – (407) (699) – (699)
Profit before tax and 
highlighted items 715  329  1,044  394  555  949 
highlighted items 6 (1,225) – (1,225) (30) – (30)
       
( L os s ) / p r o fi t	 o n 	 o r d i n a r y	
a c t i v i t i es 	 b e fo r e 	 t a x a t i o n (510) 329 (181) 364  555  919 
       
Taxation on ordinary 
activities 9 (15) (74) (89) (271) (86) (357)
       
( L os s ) / p r o fi t	 fo r 	 t h e 	 y e a r	 
from continuing operations (525)   93   
       
Profit after tax from 
discontinued operations 10 255    469   
       
( L os s ) / p r o fi t	 fo r 	 t h e 	 y e a r (270)   562   
       
(Loss)/Earnings per share – 
Basic*** 11 (5.2)p 2.5p (2.7)p 1.5p 7.4p 8.9p
Adjusted** earnings per 
share – Basic*** 11 6.9p 2.5p 9.4p 2.0p 7.4p 9.4p
(Loss)/Earnings per share – 
Diluted 11 (5.2)p 2.5p (2.7)p 1.5p 7.4p 8.9p
Adjusted** earnings per 
share – Diluted 11 6.9p 2.5p 9.4p 2.0p 7.4p 9.4p
*  See prior year restatement note 3
**   Adjusted basic and diluted earnings per share are calculated based on the profit for the period adjusted for 
highlighted items
*** 2014 basic weighted average number of shares in issue 10.17m (2013: 6.30m)
6634 Eclectic AR 2014_5 _TP.indd   18 31/10/2014   13:10 Financials
Eclectic Bar Group plc Annual Report 2014 19
CONSOLIDATED BALANCE ShEET
As at 29 June 2014
 
 
 
 
 
Notes
As at
29 June 2014
 
£’000
As at
30 June 2013
restated
£’000
As at
25 June 2012
restated
£’000
Non-current assets    
Intangible assets 13 5,464 4,598 4,193
Property, plant & equipment 12 8,270 5,436 5,849
Deferred tax assets 9 92 117 259
  13,826 10,151 10,301
Cu r r e n t 	 a s set s    
Inventories 15 455 306 264
Trade and other receivables 16 1,650 1,296 1,107
Income tax receivable 9 – –
Cash and cash equivalents 17 461 558 286
  2,575 2,160 1,657
    
Total assets 16,401 12,311 11,958
    
E qu i t y    
Issued share capital 18 3,231 –  – 
Share Premium 18 8,093 –  – 
Merger reserve 18 (1,575) –  – 
Other reserve 18 76 –  – 
Retained earnings/(deficit) 146 416 (145)
E q u i t y 	 a t t r i bu t a b l e 	 t o 	 e q u i t y 	 s h a r e h o l d e r s 	 o f 	 t h e 	 p a r e n t 9,971 416 (145)
    
T o t a l 	 e q u i t y 9,971 416 (145)
     
Lia b i l i t ies    
Cu r r e n t 	 l i a b i l i t i es    
Trade and other payables 21 3,189 2,424 2,403
Other financial liabilities 14 671 676 687
Income tax payable 9 – 74 – 
Provisions 22 201 134 52
  4,061 3,308 3,142
  
Non-current liabilities    
Deferred tax liability 9 568 480 339 
Other financial liabilities 14 1,801 8,107 8,622
  2,369 8,587 8,961
    
Total liabilities 6,430 11,895 12,103
    
T o t a l 	 e q u i t y 	 a n d 	 l i a b i l i t i es 16,401 12,311 11,958
These consolidated financial statements have been approved by the Board of Directors and signed on its behalf by:
J A Smith 
Director
30 October 2014
Registered company number: 08687172
6634 Eclectic AR 2014_5 _TP.indd   19 31/10/2014   13:10 20 Eclectic Bar Group plc Annual Report 2014
CONSOLIDATED STATEMENT OF CASh FLOWS
For the period ended 29 June 2014
 
 
 
 
 
 
Notes
52 weeks to
29 June 2014
 
£’000
53 weeks to
30 June 2013
restated
£’000
Operating activities   
(Loss)/profit before tax from operations from continuing operations (510) 364
Profit before tax from discontinued operations 10 329 555
Net finance costs 8 404 697
Depreciation of property, plant and equipment 12 1,448 1,158
Loss on disposal of property, plant and equipment (9) 102
Share based payment expense 19 76 –
(Increase) in inventories (excluding inventory acquired  15 (108) (26)
(Increase) in trade and other receivables 16 (302) (182)
Increase in trade and other payables 21 668 98
Interest received 3 3
Interest paid (416) (856)
Income tax paid (84) –
    
N et 	 c a s h 	 fl o w	 f r o m 	 o p e r a t i n g 	 a c t i v i t i es 1,499 1,913
    
Investing activities (from continuing operations)   
Purchase of property, plant & equipment and intangible assets 12 (3,210) (747)
Acquisition of business net of cash 4 (1,767) (523)
Proceeds from disposal of property, plant & equipment 9 –
    
N et 	 c a s h 	 fl o ws	 use d 	 i n 	 i n v es t i n g 	 a c t i v i t i es (4,968) (1,270)
    
Financing activities (from continuing operations)   
Proceeds from borrowings 2,450 1,950
Repayment of borrowings (8,703) (2,289)
Proceeds from IPO 10,500 –
IPO costs recognised directly in equity 18 (851) –
Capital element on finance lease rental payments (24) (32)
    
N et 	 c a s h 	 fl o ws	 f r o m / ( use d) 	 i n 	 fi n a n ci n g	 a c t i v i t i es 3,372 (371)
    
N et 	 ( d e c r e a se ) / i n cr e a se 	 i n 	 c a s h 	 a n d 	 c a s h 	 e q u i v a l e n t s (97) 272
Cash and cash equivalents at beginning of period 17 558 286
    
Ca s h 	 a n d 	 c a s h 	 e q u i v a l e n t s 	 a t 	 y e a r 	 e n d 	 d a t e 461 558
6634 Eclectic AR 2014_5 _TP.indd   20 31/10/2014   13:10 Financials
Eclectic Bar Group plc Annual Report 2014 21
CONSOLIDATED STATEMENT OF ChANGES IN EQUITY
For the period ended 29 June 2014
 
 Notes
Issued 
share
 capital
£’000
Share 
premium
£’000
Other 
reserves
£’000
M erg er
reserve
£’000
Retained
	ea r nin g s /
	( d efi cit)
£’000
Total
 shareholders’
eq u i t y
£’000
At 30 June 2013 – restated –  –  –  – 416 416
Capital restructuring 18 1,575 – – (1,575) – –
Issue of shares 18 1,656 8,944  – – – 10,600
Share based payments charge 19 –  – 76 –  –  76 
IPO costs taken to equity 18 – (851) –  –  – (851)
Loss for the period –  –  –  – (270) (270)
At 29 June 2014 3,231  8,093  76 (1,575) 146 9,971
6634 Eclectic AR 2014_5 _TP.indd   21 31/10/2014   13:10 22 Eclectic Bar Group plc Annual Report 2014
NOTES TO ThE CONSOLIDATED FINANCIAL STATEMENTS
For the period ended 29 June 2014
1. Accounting policies
Eclectic Bar Group plc is a public limited company 
incorporated and domiciled in England and Wales. The 
company’s ordinary shares are traded on the Alternative 
Investment Market. Its registered address is 36 Drury Lane, 
London WC2B 5RR. Both the immediate and ultimate 
parent of the Group is Eclectic Bar Group plc. Eclectic 
Bar Group plc, is a leading operator of 21 premium bars 
located in major towns and cities across the UK.
Basis of preparation
The Group financial statements have been prepared  
in accordance with International Financial Reporting 
Standards (IFRSs) as adopted by the European Union as 
they apply to financial statements of the Group for the 
period ended 29 June 2014 and applied in accordance 
with the Companies Act 2006. The accounting policies 
which follow set out those policies which apply in 
preparing the financial statements for the period  
ended 29 June 2014. These accounting policies were 
consistently applied for all the periods presented except 
as noted below.
The Group financial statements are presented in sterling 
and all values are rounded to the nearest thousand 
pounds (£000) except when otherwise indicated.
The Group financial statements have been prepared 
under the historical cost convention.
The financial statements are prepared on a 52 or  
53 week basis up to the last Sunday in June each year 
(2014: 52 week year ended 29 June 2014 2013: 53 week 
year ended 30 June 2013). The notes to the consolidated 
financial statements are on this basis.
Prior period restatement
Prior period comparative figures (for the period ended 
30 June 2013) have been restated from the original 
financial statements published as part of the Group’s 
AIM admission document and interim financial 
statements for the period ended 29 December 2013.  
This restatement arose as a result of differences between 
IFRS and UK GAAP accounting treatments for lease 
incentives and separate presentation of provisions. 
Further details can be found in note 3.
Going concern
At 29 June 2014, the Group had net current liabilities  
of £1,486,000 (2013 (restated) – net current liabilities  
of £1,148,000). The Group meets its day-to-day  
working capital requirements through its bank facilities. 
The Group has three principle sources of funding. 
•  An overdraft facility of £600,000, which at the end  
of the year was unutilised (2013: NIL). 
•  A three year Revolving Loan facility of £5,000,000 
which was entered into on the 18 March 2014, which  
is available for the refit of existing units and for new 
acquisitions. As at the period end, £1,639,000 had  
been drawn down from this facility (2013: NIL).
•  A term loan of £1,950,000 which was entered into in 
September 2012. As at the period end, £813,000 had 
been drawn down on this facility (2013 – £1,434,000). 
Loan repayments of £650,000 are payable over the 
next 12 months.
Quarterly covenant tests are in place over these bank 
facilities and the Group was fully compliant as at  
29 June 2014.
As a result of current trading there is significant head 
room on these covenant tests, and based on current 
and forecasted performance, the directors expect  
there to continue to be significant headroom for the 
foreseeable future. Further, based on current and 
forecasted performance, the directors consider that  
the Group will be profitable and cash generative.
Based on the above, the directors have a reasonable 
expectation that the Group has adequate resources to 
continue in operational existence for the foreseeable 
future. Thus they continue to adopt the going concern 
basis of accounting in preparing the annual financial 
statements. 
Basis of consolidation
The Consolidated financial statements include the 
financial statements of Eclectic Bar Group plc and the 
entities it controls (its subsidiaries) for the periods reported. 
For the purposes of preparing these consolidated 
accounts, subsidiaries are those entities controlled by  
the Group. Control exists when the company has the 
power, directly or indirectly, to govern the financial and 
operating policies of an entity so as to obtain benefits 
from its activities and is achieved through direct or 
indirect ownership of voting rights, by way of contractual 
agreement. The financial statements of subsidiaries, 
which are prepared for the same reporting period, are 
included in the consolidated financial statements from 
the date that control commences until the date control 
ceases. All intra-Group balances, income and expenses 
and unrealised gains and losses resulting from the 
intra-Group transactions are eliminated in full. 
Subsidiary entity accounts are prepared in accordance 
with United Kingdom Generally Accepted Accounting 
Principle (UK GAAP).
6634 Eclectic AR 2014_5 _TP.indd   22 31/10/2014   13:10 Financials
Eclectic Bar Group plc Annual Report 2014 23
1. Accounting policies (continued)
P r o p e r t y , 	 p l a n t 	 a n d 	 e q u i p m e n t
Property, plant and equipment is stated at cost less 
accumulated depreciation and impairment. Such cost 
includes the cost of replacing part of the property,  
plant and equipment when the cost is incurred, if the 
recognition criteria are met, in which case the carrying 
value of the replaced part is written off. All major repairs 
and maintenance costs are recognised in the income 
statement as incurred.
Depreciation is calculated on a straight line basis  
over the useful life of the asset as follows:
Leasehold improvements – over lease term
Furniture and fittings – 3-5 years
IT equipment  – 3 years
Motor vehicles  – 5 years
An item of property, plant and equipment is 
derecognised upon disposal or when no future 
economic benefits are expected from its use. Any gain 
or loss arising on de-recognition of the asset (calculated 
as the difference between the net disposal proceeds 
and the carrying amount of the asset) is included in the 
income statement in the year the asset is de-recognised.
The asset’s residual values, useful lives and methods of 
depreciation are reviewed, and adjusted if appropriate, 
at each financial year end. The assets are reviewed  
for impairment if events or circumstances indicate the 
carrying value may not be recoverable, and are written 
down immediately to their recoverable amount.
Borrowing costs
Borrowing costs are recognised as an expense when 
incurred.
 
Business combinations and goodwill
Business combinations are accounted for in accordance 
with IFRS 3 (revised) for acquisitions made after  
1 July 2009.
For each business combination, management makes  
an assessment of whether any intangible assets have 
been acquired, and how much goodwill arose as a 
result of the acquisition. Goodwill is initially measured  
at cost being the excess of the cost of the business 
combination over the Group’s share in the net fair value 
of the acquiree’s identifiable assets, liabilities and 
contingent liabilities.
After initial recognition, goodwill is measured at cost  
less any accumulated impairment losses. For the 
purpose of impairment testing, goodwill acquired in  
a business combination is, from the acquisition date, 
allocated to each of the Group’s cash generating units 
that are expected to benefit from the synergies of the 
combination, irrespective of whether other assets or 
liabilities of the acquiree are assigned to those units.
Where goodwill forms part of a cash generating unit and 
part of the operation within that unit is disposed of, the 
goodwill associated with the operation disposed of is 
included in the carrying amount of the operation when 
determining the gain or loss on disposal of the operation. 
Goodwill disposed of in this circumstance is measured 
based on the relative values of the operation disposed 
of and the portion of the cash generating unit retained.
The Group assesses whether there are any indicators 
that goodwill is impaired at each reporting date. 
Goodwill is tested for impairment annually and when 
circumstances indicate that the carrying amount may 
be impaired.
Impairment is determined for goodwill by assessing  
the recoverable amount of the cash generating units,  
to which goodwill relates. Where the recoverable 
amount of the cash generating units is less than the 
carrying amount, an impairment loss is recognised. 
Impairment losses relating to goodwill are not reversed  
in future periods. The Group performs its annual 
impairment test of goodwill as at 30 June.
Inventories
Inventories are valued at the lower of cost and net 
realisable value. Cost is determined on a first-in, first-out 
basis and includes all cost incurred in bringing each 
product to its present location and condition.
I n v es t m e n t s 	 a n d 	 o t h e r 	 fi n a n ci a l	 a s set s
Financial assets within the scope of IAS 39 are classified 
as financial assets held at fair value through profit or loss, 
loans and receivables, held-to-maturity investments  
or available-for-sale financial assets, as appropriate.  
The Group currently holds no financial assets held at fair 
value through profit or loss, held-to-maturity or available 
for sale financial assets. When financial assets are 
recognised initially, they are measured at fair value,  
plus, in the case of investments not at fair value through 
profit and loss, directly attributable transaction costs.
The Group determines the classifications of its financial 
assets on initial recognition and, where allowed and 
appropriate, re-evaluates this designation at each 
financial year end.
6634 Eclectic AR 2014_5 _TP.indd   23 31/10/2014   13:10 24 Eclectic Bar Group plc Annual Report 2014
NOTES TO ThE CONSOLIDATED FINANCIAL STATEMENTS
continued
1. Accounting policies (continued)
Loans and receivables
Loans and receivables are non-derivative financial 
assets with a fixed or determinable payment that are  
not quoted in an active market. After initial recognition 
loans and receivables are carried at amortised cost 
using the effective interest rate method less any 
allowance for impairment. Gains and losses are 
recognised in the income statement when the loans  
and receivables are derecognised or impaired,  
as well as through the amortisation process.
Impairment of financial assets
The Group assesses at each statement of financial 
position date whether a financial asset or group of 
financial assets is impaired.
 
Assets carried at amortised cost
If there is objective evidence that an impairment loss  
on assets carried at amortised cost has been incurred, 
the amount of the loss is measured as the difference 
between the asset’s carrying amount and the present 
value of estimated future cash flows (excluding future 
expected credit losses that have not been incurred) 
discounted at the financial asset’s original effective 
interest rate (i.e the effective interest rate computed  
at initial recognition). The carrying amount of the asset  
is reduced through use of an allowance account.  
The amount of the loss is recognised in the income 
statement.
If, in a subsequent period, the amount of the impairment 
loss decreases and the decrease can be related 
objectively to an event occurring after the impairment 
was recognised, the previously recognised impairment 
loss is reversed, to the extent that the carrying value  
of the asset does not exceed its amortised cost at the 
reversal date. Any subsequent reversal of an impairment 
loss is recognised in the income statement.
In relation to trade receivables, a provision for 
impairment is made when there is objective evidence 
(such as the probability of insolvency or significant 
financial difficulties of the debtor) that the Group will  
not be able to collect all the amounts due under the 
original terms of the invoice. The carrying amount of  
the receivables is reduced through use of an allowance 
account. Impaired debts are derecognised when  
they are assessed as uncollectable.
Cash and cash equivalents
Cash and short term deposits in the statement of 
financial position comprise cash at bank and short term 
deposits with a maturity of 3 months or less.
For the purpose of the consolidated cash flow statement, 
cash and cash equivalents consist of cash and cash 
equivalents as defined above, net of outstanding  
bank overdrafts.
Financial liabilities
Interest bearing loans and borrowings
All loans and borrowings are initially recognised at  
fair value less directly attributable transaction costs.
After initial recognition, interest bearing loans and 
borrowings are subsequently measured at amortised 
cost using the effective interest rate method.
Gains and losses are recognised in the income 
statement when the liabilities are derecognised  
as well as through the amortisation process.
D e - r e c og n i t i o n 	 o f 	 l i a b i l i t i es
When the Group has transferred its rights to receive  
cash flows from an asset and has neither transferred  
nor retained substantially all the risks and rewards of  
the asset nor transferred control of the asset, the asset  
is recognised to the extent of the Group’s continuing 
involvement in the asset. Continuing involvement that 
takes the form of a guarantee over the transferred asset 
is measured at the lower of the original carrying amount 
of the asset and the maximum amount of consideration 
that the Group could be required to repay.
When continuing involvement takes the form of a written 
and/or purchase option (including a cash settled option 
or similar provision) on the transferred asset that the 
Group may repurchase, except that in the case of a 
written put option (including a cash settled option or 
similar provision) on an asset measured at fair value, the 
extent of the Group’s continuing involvement is limited  
to the lower of the fair value of the transferred asset and 
the option exercise price.
 
Financial liabilities
A financial liability is derecognised when the obligation 
under the liability is discharged or cancelled or expires.
When an existing financial liability is replaced by another 
from the same lender on substantially different terms,  
or the terms of an existing liability are substantially 
modified, such an exchange or modifications is treated 
as a de-recognition of the original liability and the 
recognition of a new liability, and the difference in  
the respective carrying amounts is recognised in the 
income statement.
6634 Eclectic AR 2014_5 _TP.indd   24 31/10/2014   13:10 Financials
Eclectic Bar Group plc Annual Report 2014 25
1. Accounting policies (continued)
L e a s es
The determination of whether an arrangement is,  
or contains a lease is based on the substance of the 
arrangement at inception date of whether the fulfilment 
of the arrangement is dependent on the use of a 
specific asset or assets or the arrangement conveys  
a right to use the asset.
Finance leases, which transfer to the Group substantially 
all the risk and benefits incidental to ownership of the 
leased item, are capitalised at the inception of the lease 
at the fair value of the leased asset or, if lower, at the 
present value of the minimum lease payments. Lease 
payments are apportioned between the finance 
charges and reduction of the leased liability so as to 
achieve a constant rate of interest on the remaining 
balance of the liability. Finance charges are reflected  
in the income statement.
Capitalised lease assets are depreciated over the 
shorter of the estimated useful life of the asset and the 
lease term, if there is no reasonable certainty that the 
Group will obtain ownership by the end of the lease term.
Operating lease rentals, together with lease incentives 
are charged to the income statement on a straight line 
basis over the term of the lease.
Provisions
Provisions are recognised when the Group has a 
probable, present legal or constructive obligation  
to make a transfer of economic benefits as a result of  
past events where a reliable estimate is available. The 
amounts recognised represent the Group’s best estimate 
of the transfer of benefits that will be required to settle 
the obligation as of the balance sheet date. Provisions 
are discounted if the effect of the time value of money  
is material using a pre-tax market rate adjusted for risks 
specific to the liability.
Highlighted items
highlighted items are treated as such if the matters  
are non-recurring, material and fall within one of the 
categories below:
a)  Restructuring costs of the Group (including costs 
associated with listing of the Group on AIM);
b)  Acquisition costs and pre-opening costs relating  
to new refit sites.
Acquisition and pre-opening costs are highlighted 
because they are one-off costs that are unique to  
each development. The Group only acquires new sites 
when appropriate opportunities arise. Therefore in any 
given period, acquisition costs can vary significantly 
depending on the number of new sites acquired and  
the level of investment required to bring the site into  
use, and so do not reflect the costs of the day to day 
operations of the business. These are therefore split out  
in order to aid comparability with prior periods. Similarly, 
pre-opening costs are incurred after the acquisition of  
a new site. For the reasons outlined above, these costs 
have also been highlighted in order to aid comparability 
with prior periods.
Revenue recognition
Revenue is recognised to the extent that it is probable 
that the economic benefits will flow to the Group  
and the revenue can be reliably measured. Revenue  
is measured at the fair value of the consideration 
received, excluding discounts, rebates and value 
Added Taxes.
Revenue from sale of goods is recognised when  
the significant risks and rewards of ownership of the 
goods have passed to the buyer, usually on delivery  
of the goods.
Interest income is recognised as interest accrues  
(using the effective interest rate method).
Share-based payments
Equity-settled transactions
The costs of equity-settled transactions with employees  
is measured by reference to the fair value of the equity 
instruments at the date of grant and is recognised as an 
expense over the vesting period, which ends on the date 
on which the relevant employees become fully entitles 
to the award.
Fair value is determined using the Black-Scholes pricing 
model. In valuing equity-settled transactions, no 
account is taken of any service and performance 
(vesting) conditions, other than performance conditions 
linked to the price of the shares of the Company (market 
conditions). Any other conditions which are required  
to be met in order for the employee to become fully 
entitled to an award are considered non-vesting 
conditions. Like market performance conditions, 
non-vesting conditions are taken into account in 
determining the grant date fair value.
No expense is recognised for awards that do not 
ultimately vest, except for awards where vesting is 
conditional upon a market vesting condition or a 
non-vesting condition, which are treated as vesting 
irrespective of whether or not the market vesting 
condition or non-vesting condition is satisfied, provided 
that all service and non-market vesting conditions  
are satisfied.
6634 Eclectic AR 2014_5 _TP.indd   25 31/10/2014   13:10 26 Eclectic Bar Group plc Annual Report 2014
NOTES TO ThE CONSOLIDATED FINANCIAL STATEMENTS
continued
1. Accounting policies (continued)
Share-based payments (continued)
Equity-settled transactions (continued)
At each balance sheet date before vesting, the 
cumulative expense is calculated, representing the 
extent to which the vesting period has expired and 
management’s best estimate of the achievement or 
otherwise of service and non-market vesting conditions 
and of the number of equity instruments that will 
ultimately vest or, in the case of an instrument subject  
to a market condition or a non-vesting condition, be 
treated as vesting as described above. The movement  
in cumulative expense since the previous balance 
sheet date is recognised in the income statement,  
with a corresponding entry in equity.
Where the terms of an equity-settled award are modified 
or a new award is designated as replacing a cancelled 
or settled award, the cost based on the terms of the 
original award continues to be recognised over the 
original vesting period. In addition, an expense is 
recognised over the remainder of the new vesting 
period for the incremental fair value of any modification, 
based on the difference between the fair value of the 
original award and the fair value of the modified award, 
both as measured on the date of modification. No 
reduction is recognised if this difference is negative. 
Where an equity-settled award is cancelled (including 
when a non-vesting condition within the control of the 
entity or employee is not met), it is treated as if it had 
vested on the date of cancellation, and any cost not  
yet recognised in the income statement for the award  
is expensed immediately. Any compensation paid up  
to the fair value of the award at the cancellation or 
settlement date is deducted from equity, with any  
excess over the fair value of the settled award being 
treated as an expense in the income statement.
The Group does not currently award cash-settled share 
options to employees.
 
Ta x es
Current income tax
Current income tax assets and liabilities for the current 
and prior periods are measured at the amount 
expected to be recovered from or paid to the taxation 
authorities. The tax rates and tax laws used to compute 
the amount are those that are enacted or substantively 
enacted by the statement of financial position date.
Current income tax relating to items recognised  
directly in equity is recognised in equity and not  
in the income statement.
Deferred income tax
Deferred income tax is provided using the liability 
method on temporary differences at the statement of 
financial position date between the tax bases of assets 
and liabilities and their carrying amounts for financial 
reporting purposes.
Deferred income tax liabilities are recognised for all 
taxable temporary differences, except:
•  where the deferred income tax liability arises from the 
initial recognition of goodwill or of an asset or liability  
in a transaction that is not a business combination and, 
at the time of the transaction, affects neither the 
accounting profit nor taxable profit or loss; and
•  in respect of taxable temporary difference associated 
with investments in subsidiaries, associates and interest 
in joint ventures, where the timing of the reversal of  
the temporary differences can be controlled and it  
is probable that the temporary differences will not 
reverse in the foreseeable future.
Deferred income tax assets are recognised for all 
deductible temporary differences, carry forward of 
unused tax credits and unused tax losses, to the extent 
that it is probable that taxable profit will be available 
against which the deductible temporary differences, 
and the carry forward of unused tax credits and unused 
tax losses can be utilised except:
•  where the deferred income tax asset relating to the 
deductible temporary difference arises from the initial 
recognition of an asset or liability in a transaction that  
is not a business combination and, at the time of the 
transaction, affects neither the accounting profit nor 
taxable profit or loss; and
•  in respect of deductible temporary differences 
associated with investments in subsidiaries, associates 
and interest in joint ventures, deferred income tax 
assets are recognised only to the extent that it is 
probable that the temporary differences will reverse  
in the foreseeable future and taxable profit will be 
available against which the temporary difference  
can be utilised.
The carrying amount of deferred tax assets is reviewed at 
each statement of financial position date and reduced 
to the extent that it is no longer probable that sufficient 
taxable profits will be available to allow all or part of the 
deferred tax asset to be utilised. Unrecognised deferred 
tax assets are reassessed at each statement of financial 
position date and are recognised to the extent that  
it has become probable that the future taxable profit  
will allow the deferred tax asset to be recovered.
 
6634 Eclectic AR 2014_5 _TP.indd   26 31/10/2014   13:10 Financials
Eclectic Bar Group plc Annual Report 2014 27
1. Accounting policies (continued)
New standards and interpretations
The following standards and interpretations are 
applicable but had no material impact on the Group:
Effective dates
IAS 19 Separate Financial Statements 
(revised) 1 January 2013
IFRS 7 Financial Instruments Disclosures 
– Offsetting
Financial assets and Financial Liabilities 
(Amendments) 1 January 2013
IFRS 1 Government Loans  
– Amendments to IFRS 1 1 January 2013
IFRIC 20 Stripping costs in the 
Production Phase of a Surface Mine 1 January 2013
Annual improvements to  
IFRS 2009-2011 cycle 1 January 2013
The following standards and interpretations in issue  
are not yet effective for the Group and have not been 
adopted by the Group:
Effective dates*
IFRS 10 Consolidated  
Financial Statements 1 January 2014
IFRS 11 Joint Arrangements 1 January 2014
IFRS 12 Disclosure of  
Interests in Other Entities 1 January 2014
IAS 27 Separate  
Financial Statements 1 January 2014
IAS 28 Investments in  
Associates and Joint ventures 1 January 2014
IAS 32 Financial Instruments:  
Presentation – Offsetting
Financial Assets and Financial  
Liabilities (Amendments) 1 January 2014
IAS 36 Impairment of Assets  
– Recoverable Amount  
Disclosures for Non-Financial  
Assets (Amendments) 1 January 2014
IAS 39 Financial Instruments:  
Recognition and Measurement  
– Novation of Derivatives and  
Continuation of hedge  
Accounting (Amendments) 1 January 2014
Investment Entities (Amendments  
to IFRS 10, IFRS 12 and IAS 27) 1 January 2014
IFRIC 21 Levies 1 January 2014
The directors do not expect the adoption of these 
standards and interpretations to have a material impact 
on the consolidated or company financial statements  
in the period of initial adoption.
*  The effective dates stated above are those given in the 
original IASB/IFRIC standards and interpretations. As the Group 
prepares its financial statements in accordance with IFRS as 
adopted by the European Union (EU), the application  
of new standards and interpretations will be subject to  
their having been endorsed for use in the EU via the EU 
Endorsement mechanism. In the majority of cases this  
will result in an effective date consistent with that given  
in the original standard or interpretation but the need for 
endorsement restricts the Group’s discretion to early adopt 
standards. IFRS 10, 11 and 12 and IAS 27 and 28 have been 
adopted by the EU with an effective date as of January 2014.
2 . 	 S i g n i fi c a n t	 ac c oun t i ng 	 es t i m a tes , 	 judgem en t s	 
and assumptions
The preparation of the Group and parent company’s 
financial statements requires management to make 
estimates, judgements and assumptions that affect the 
reported amount of assets and liabilities at the statement 
of financial position date, amounts reported for revenues 
and expenses during the year, and the disclosure of 
contingent liabilities, at the reporting date. however, 
uncertainty about these assumptions and estimates 
could result in outcomes that could require a material 
adjustment to the carrying amount of the assets or 
liability affected in the future.
In the process of applying the Group and parent 
company’s accounting policies, management has 
made the following estimates and assumptions which 
have the most significant effect on the amounts 
recognised in the financial statements:
Estimates, judgements and assumptions
The key assumptions concerning the future and other 
key sources of estimation uncertainty at the statement  
of financial position date, that have a significant risk of 
causing material adjustments to the carrying amounts  
of assets and liabilities within the next financial year  
are discussed below:
6634 Eclectic AR 2014_5 _TP.indd   27 31/10/2014   13:10 28 Eclectic Bar Group plc Annual Report 2014
NOTES TO ThE CONSOLIDATED FINANCIAL STATEMENTS
continued
2 . 	 S i g n i fi c a n t	 ac c oun t i ng 	 es t i m a tes , 	 judgem en t s	 
and assumptions (continued)
Estimates
Impairment of non-financial assets
Impairment exists when the carrying value of an asset  
or cash generating unit exceeds its recoverable amount, 
which is the higher of its fair value less costs of disposal 
and its value in use. The fair value less costs of disposal 
calculation is based on similar assets or observable 
market prices less incremental costs for disposing  
the assets. The value in use calculation is based on  
a discounted cash flow model. The cash flows are 
derived from the budget and projections for the next  
five years and do not include restructuring activities that 
the Group is not yet committed to or significant future 
investments that will enhance the asset’s performance 
of the cash generating unit being tested. The 
recoverable amount is most sensitive to the discount rate 
used for the discounted cash flow model as well as the 
expected future cash-inflows and the growth rate used 
for extrapolation purposes. The key assumptions used  
to determine the recoverable amount for the different 
cash generating units, including a sensitivity analysis,  
are disclosed further in note 13.
Rent review provisions
Operating leases on commercial property are subject to 
regular rent reviews by landlords. Lease clauses provide 
for upward review to open market rental rates in the 
local areas around each site. Such reviews can take  
time to conclude, meaning management must estimate 
the likelihood of each review resulting in an increase in 
rental payments. Where increases do occur, landlords 
may apply this retrospectively from the period when  
the review process was contractually required to 
commence. Management therefore makes estimates  
on whether an increase in rental payments is likely  
at each rent review date and creates a provision for  
any estimated increase in rent expense. The provision 
amount is based on observable market rental rate 
specific for local area around each individual site. 
Further details can be found in note 22.
Judgements
Operating lease commitments
The Group has entered into commercial property leases 
as a lessee. In doing so, it obtains the use of property, 
plant and equipment. The classification of such leases  
as operating or finance lease requires the Group to 
determine, based on an evaluation of the terms and 
conditions of the arrangements, whether it retains or 
acquires the significant risk and rewards of ownership of 
these assets and accordingly whether the lease requires 
an asset and liability to be recognised in the statement 
of financial position.
Deferred tax assets 
Deferred income tax assets are recognised for all 
deductible temporary differences, carry forward of 
unused tax credits and unused tax losses, to the extent 
that it is probable that taxable profit will be available 
against which the deductible temporary differences, 
and the carry forward of unused tax credits and unused 
tax losses can be utilised, except in those circumstances 
outlined in note 1. Significant management judgement  
is required to determine the amount of deferred tax that 
can be recognised, based upon the likely timing and 
level of future taxable profits together with future tax 
planning strategies. 
Pre-opening costs
Pre-opening costs are incurred when opening a new site 
or undertaking a refit of an existing site. These costs are 
one off in nature and are incurred in the period leading 
up to the opening and in the first two months of trading. 
Examples of these costs include such things as the 
training of new staff and the new management team, 
marketing costs, and one off costs related to the closure 
period. Management judgement is required to 
distinguish between pre-opening costs that should be 
capitalised and those that should be expensed to the 
income statement when incurred. It is management’s 
judgement that rent, rates and service charge costs 
incurred on newly acquired properties prior to opening 
should be capitalised, as these costs will result in future 
economic benefit to the Group.
3. Prior period restatement
During 2014, the Company discovered that the first set  
of IFRS financial statements produced in 2013 did not 
include an adjustment related to rent free periods on 
operating leases where the Company is the lessor. Under 
IFRS (SIC 15), lease incentives (such as rent free periods) 
are treated as a reduction of the rental expense that is 
spread evenly over the lease term on a straight-line 
basis. In contrast, UK GAAP (which the Group formerly 
produced accounts in accordance with) requires the 
incentive to be spread over the shorter of the lease term 
and the period to the first rent review to market rates 
(UITF 28). 
6634 Eclectic AR 2014_5 _TP.indd   28 31/10/2014   13:10 Financials
Eclectic Bar Group plc Annual Report 2014 29
3. Prior period restatement (continued)
Lease terms are 25 years. The period to the first rent 
review to market rates is 5 years. The Group’s accounts 
have therefore been restated to reflect the significantly 
longer period of time over which the lease incentive  
is spread. The impact of this restatement can be 
summarised as follows:
Reported
£’000
 Rent free
	 ad j u s t m e n t
£’000
Restated
£’000
As at 24 June 2012   
Balance sheet   
Deferred tax asset 241 18 259
Retained (losses)/
earnings (91) (55) (146)
Trade and other 
payables 2,382 73 2,455
As at 30 June 2013   
Income statement   
Total operating 
expenses (15,205) (42) (15,247)
Operating profit 1,658 (42) 1,616
Taxation charge on 
ordinary activities (365) 8 (357)
P r o fi t / ( L os s )	 a n d 	 t ot a l	
comprehensive 
income for the 
period 596 (34) 562
Balance sheet   
Deferred tax asset 91 26 117
Retained earnings/
(deficit) 505 (88) 417
Trade and other 
payables 2,443 115 2,558
Also, the prior year balance sheet has been restated  
so that amounts accrued in relation to rent reviews are 
shown separately as provisions rather accruals as per  
IAS 37 Provisions, contingent liabilities and contingent 
assets. For the period ended 30 June 2013, £134,000  
was separated from accruals (held within Trade and 
other payables on the balance sheet) and disclosed 
separately as provisions on the face of the balance 
sheet and £52,000 was re-presented the same way as of 
25 June 2012. Due to this reclassification, Trade and other 
payables has decreased from £2,558,000 to £2,424,000 
as of 30 June 2013 and has decreased from £2,455,000 
to £2,403,000 as of 25 June 2012. Provisions balance as  
of 30 June 2013 has therefore increased by £134,000 and 
£52,000 as of 30 June 2013 and 25 June 2012 respectively.
4. Business combinations
On 31 March 2014 the Group acquired 100% of the issued 
share capital of Newman Bars Limited and its subsidiary 
Chalice Bars Limited. Both companies are unlisted and 
based in the UK. The Group acquired these companies 
in order to assume ownership of the lease, trade and 
assets of Lowlander, a Belgian bar and restaurant in 
Covent Garden, central London. 
A s set s 	 a c q u i r e d 	 a n d 	 l i a b i l i t i es 	 a s su m e d
The fair values of the identifiable consolidated assets 
and liabilities of Newman Bars Limited as at the date  
of acquisition were:
F a i r 	 v a l u e 	 o f 	 a s s e t s 	 a c q u i re d	
and liabilities assumed
Fair value
 recognised
	 a t 	 M a r c h
 2014
£’000
Assets
Tangible assets 153 
Inventories 16 
Cash 114 
Trade and other receivables 40 
Lia b i l i t ies 
Trade and other payables (163) 
T o t a l 	 i d e n t i fi a b l e	 n et 	 a s set s 	 a t 	 f a i r 	 v a l ue 158 
Goodwill arising on acquisition (see note 13) 736 
Purchase consideration transferred 894 
Purchase consideration 
Cash 794 
Shares 100
Total purchase consideration 894 
6634 Eclectic AR 2014_5 _TP.indd   29 31/10/2014   13:10 30 Eclectic Bar Group plc Annual Report 2014
NOTES TO ThE CONSOLIDATED FINANCIAL STATEMENTS
continued
4. Business combinations (continued)
The Group issued 60,241 ordinary shares as part of the 
consideration for Newman Bars Limited. The fair value  
of the shares is calculated with reference to the quoted 
price of the shares of the Company at the date of 
acquisition, which was £1.66 each. The fair value of  
the consideration paid in shares is therefore £100,000.
Newman Bars Limited and Chalice Bars Limited 
contributed £346,000 to group revenue and £61,000  
to group net profit during the period from acquisition  
(31 March 2014) to 29 June 2014. had they been 
consolidated from 1 July 2013, the consolidated  
income statement would show pro-forma revenue  
of £1,227,000 and net profit of £132,000. Goodwill  
of £736,000 comprises the fair value of operating  
a site in prestigious central London location.
In October 2013 the Group acquired leases to the 
Coalition nightclub in Brighton and the freehold of 
Coyote Wild in Derby. The Group acquired these  
sites in order to widen its current portfolio and drive 
further growth.
The fair values of the identifiable assets of Coalition  
as at the date of acquisition are detailed below.  
No liabilities were assumed as part of this transaction.
F a i r 	 v a l u e 	 o f 	 a s s e t s 	 a c q u i re d
Fair value 
recognised
 at October
 2013
£’000
Assets
Tangible assets 570
Inventories 17
Cash 4
Other receivables 12
T o t a l 	 i d e n t i fi a b l e	 n et 	 a s set s 	 a t 	 f a i r 	 v a l ue 603
Goodwill arising on acquisition (see note 13) 130
Purchase consideration transferred 733
Purchase consideration 
Cash 733
Total purchase consideration 733
Goodwill of £130,000 comprises the fair value of 
expected synergies arising from the acquisition. 
Coalition contributed £1,414,000 to revenue and 
£296,000 to net profit during the period from acquisition 
(31 October 2013) to 29 June 2014. had Coalition been 
consolidated from 1 July 2013, the consolidated income 
statement would show pro-forma revenue of £2,003,000 
and net profit of £417,000.
The fair values of the identifiable assets and liabilities  
of Derby Coyote Wild as at the date of acquisition:
F a i r 	 v a l u e 	 o f 	 a s s e t s 	 a c q u i re d
Fair value
 recognised
	 a t 	 M a r c h
 2013
£’000
Assets
Tangible assets 350
Inventories 8
Cash 5
T o t a l 	 i d e n t i fi a b l e	 n et 	 a s set s 	 a t 	 f a i r 	 v a l ue 363
Goodwill arising on acquisition (see note 13) –
Purchase consideration transferred 363
Purchase consideration
Cash 363
Total purchase consideration 363
During the period, the above acquisition contributed 
£310,000 to revenue and £2,000 to net profit during the 
period from acquisition to 29 June 2014. had these 
businesses been consolidated from 1 July 2013, the 
consolidated income statement would show pro-forma 
revenue of £488,000 and net profit of £5,000.
The above business combinations resulted in total 
acquisition costs of £159,000. These were expensed to  
the income statement as a highlighted item (see note 6).
6634 Eclectic AR 2014_5 _TP.indd   30 31/10/2014   13:10 Financials
Eclectic Bar Group plc Annual Report 2014 31
5. Segmental information
The following tables present revenue and loss and certain asset and liability information regarding the Group’s 
business segments for the period ended 29 June 2014. The contract operation of bars represents a discontinued 
operation (see note 10), meaning that the Group consisted of just one segment as at the year end date of  
29 June 2014.
 
 Period ended 29 June 2014 Period ended 30 June 2013
 restated
 
Owned
bars
£’000
Con t rac t
 operation 
of bars
£’000
Total
£’000
Owned
 bars
£’000
Contract
 operation 
of bars
£’000
 total
£’000
Revenue      
Sales to external customers 22,958 371 23,329 20,551 646 21,197
       
G r ou p 	 o p e r a t i n g 	 ( l os s ) / p r o fi t (106) 329 223 1,061 555 1,616
Net finance cost (404) – (404) (697) – (697)
       
( L os s ) / p r o fi t	 b e fo r e 	 t a x a t i o n (510) 329 (181) 364 555 919
       
Assets and liabilities      
Segment assets 16,401 – 16,401 12,311 – 12,311
Segment liabilities 6,430 – 6,430 11,895 – 11,895
The Group has included additional disclosure on the face of the income statement to make clear the contribution  
to Revenue, Profit before tax and Profit after tax of the operations to be discontinued in 2014.
6. Highlighted items
 
 
Period 
ended
29 June 
2014
£’000
Period
 ended
30 June
 2013
£’000
A c q u i s i t i o n 	 a n d 	 p r e - o p e n i n g 	 c os t s	  
 Acquisition costs 159 30
 Site pre-opening costs 174 – 
 333 30
Cos t s 	 a s soci a t e d 	 w i t h 	 t h e 	 l i s t i n g 	 a n d 	 G r ou p 	 r es t r uc t u r i n g  
 Restructuring costs associated with IPO 175 –
 Share issue costs 399 –
 Listing costs 33 –
 IFRS 2 Share based payment charge 76 –
 Listing bonus payments 209 –
 892 – 
Total 1,225 30
The above items have been highlighted to give a better understand of non-comparable costs included in the 
Consolidated Income Statement for this period. 
6634 Eclectic AR 2014_5 _TP.indd   31 31/10/2014   13:10 32 Eclectic Bar Group plc Annual Report 2014
NOTES TO ThE CONSOLIDATED FINANCIAL STATEMENTS
continued
6. Highlighted items (continued)
Costs of £399,000 relate to the issuing of new ordinary 
shares in the Company. These together with £33,000 
listing costs and restructuring costs of £175,000 relate to 
the listing of the business on the Alternative Investment 
Market (AIM) in November 2013. These costs are one  
off in nature and will not reoccur in subsequent years. 
Acquisition costs of £159,000 (2013: £30,000) have been 
included. These relate to the one-off costs of purchasing 
new sites in London, Derby, Brighton and Manchester. 
Site opening costs of £174,000 have also been highlighted. 
These relate to the one-off opening costs of Manchester 
Lola Lo, Derby Lola Lo, Dirty Blonde and Lowlander. 
Bonus payments of £209,000 relate to amounts paid  
to management as a result of the Group’s successful 
restructuring.
Additional costs of £851k relating to the issuing of  
new equity have been allocated against reserves  
in accordance with IFRS.
7. Employee costs
Employee benefits expense 
Group
Period
ended
29 June
2014
£’000
Period
ended
30 June
2013
£’000
Included in other  
operating costs  
Wages and salaries 5,310 4,707
Social security costs 332 258
 5,642 4,965
Average number of people employed
 
 
2014
FTE
2013
FTE
Number of full time equivalent 
(FTE) employees 234 192 
   
Average number of people 
(i n cl ud i n g 	 e x e c u t i v e 	 d i r e c t o r s )	
employed: 
Operational 215 176 
Administration 19 16 
Total average headcount 234 192 
Directors
Period
ended
29 June
2014
£’000
Period
ended
30 June
2013
£’000
Aggregate remuneration in 
respect of qualifying services 645 659
Aggregate remuneration in 
respect of the highest paid 
director 319 414
An analysis of directors’ remuneration is set out in the 
directors’ report. No directors received any pension 
contributions during the year (2013: £Nil) – which is 
included in the totals above.
8 . 	 O t he r 	 i nc om e 	 a nd 	 e x pend i t u r e
Finance costs
 
 
 
 
 
Period
ended
29 June
2014
£’000
Period
ended
30 June
2013
£’000
Interest on debts, borrowings  
and finance leases 407 699
Finance income
 
 
 
 
 
Period
ended
29 June
2014
£’000
Period
ended
30 June
2013
£’000
Bank interest 3 2
   
Depreciation, amortisation and costs of inventories 
included in the consolidated income statement
 
 
 
 
 
Period
ended
29 June
2014
£’000
Period
ended
30 June
2013
£’000
I n cl ud e d 	 i n 	 o p e r a t i n g 	 e x p e n ses  
Depreciation of owned 
property, plant & equipment 1,424 1,126
Depreciation of assets held 
under finance leases 24 32
Profit on disposal of property, 
plant & equipment (9) 102
Operating lease rentals  
– land and buildings 1,634 1,398
Staff costs (see note 7) 5,642 4,965
Contract security costs 1,827 1,600
Other operating expenses 6,286 5,903
Operating expenses from 
discontinued operations 42 91
16,870 15,217
6634 Eclectic AR 2014_5 _TP.indd   32 31/10/2014   13:10 Financials
Eclectic Bar Group plc Annual Report 2014 33
9 . 	 I nc om e 	 ta x
a) Tax on profit on ordinary activities
The tax is made up as follows:
 
 
 
 
 
Period
ended
29 June
2014
£’000
Period
ended
30 June
2013
restated
£’000
Cu r r e n t 	 t a x :
UK Corporation tax (credit)/
charge on the (loss)/profit  
for the period (33) 74
Adjustment in respect  
of prior periods 8 –
Total current tax (25) 74
D e f e r r e d 	 t a x :
Origination and reversal of 
temporary differences 114 283
Total tax charge for the year 89 357
b) Factors affecting tax charge for the period
The tax charge/(credit) for the period is different from  
the standard rate of corporation tax in the UK of 22.5% 
(2013 – 23.75%). The differences are explained below:
 
 
Period
 ended
29 June
2014
£’000
Period
 ended
30 June
2013
restated
£’000
(Loss)/profit on ordinary activities 
before tax (181) 919
(Loss)/profit on ordinary activities 
multiplied by standard rate  
of corporation tax in the UK  
of 22.5% (2013 – 23.75%) (41) 218
 
Effects of:
Expenses not (taxable)/
deductible for tax purposes 189 11
Impact of tax rate change (67) 2
Adjustment in respect  
of prior periods 8 126
Total tax charge for the period 89 357
Legislation to reduce the UK main rate of corporation tax 
from 23% to 21% with effect from 1 April 2014 and to 20% 
with effect from 1 April 2015 was enacted in July 2013. 
Accordingly, deferred tax balances at 29 June 2014  
have been calculated based on these rates.
c) Deferred tax
A deferred taxation liability has been provided at  
29 June 2014. The deferred taxation liability, using  
a tax rate of 20% (2013: 23%), comprises the following:
 
 
Period
 ended
 29 June
2014
£’000
Period
 ended
30 June
2013
restated
£’000
Assets  
Capital allowances  
in (advance)/arrears  
of depreciation 44 117
Other temporary differences 48 –
 92 117
Recognised in the  
balance sheet:
Included in (payables)/
receivables (Note 16 & 21)
Lia b i l i t ies
Goodwill (568) (480)
No deferred tax has been recognised in respect of 
capital losses of £51,826 due to a lack of sufficient 
certainty over future appropriate taxable income 
against which these amounts could be recovered.
6634 Eclectic AR 2014_5 _TP.indd   33 31/10/2014   13:10 34 Eclectic Bar Group plc Annual Report 2014
NOTES TO ThE CONSOLIDATED FINANCIAL STATEMENTS
continued
1 0. 	 D i sc on t i nued 	 ope r a t i on s
On 20 October 2013, the Group ended its contract to manage the day to day operations of thirty three sites  
owned by Premium Bars and Restaurants Limited (‘PBR’). This contract had been in place since August 2012.  
The PBR contract was included in the ‘Contract Operation of Bars’ segment until 20 October 2013. The revenue,  
costs and cash flows attributable to this contract are outlined below. There were no assets or liabilities outstanding  
in respect of the contract.
 
 
 
 
Period
ended
29 June
2014
£’000
Period
ended
30 June
2013
restated
£’000
Revenue 371 646
   
G r os s 	 p r o fi t 371 646
   
Operating expenses (42) (91)
T o t a l 	 o p e r a t i n g 	 e x p e n ses (42) (91)
   
O p e r a t i n g 	 p r o fi t 329 555
   
Taxation on ordinary activities (74) (86)
   
P r o fi t	 a f t e r 	 t a x 	 f r o m 	 d i sc o n t i n ue d 	 o p e r a t i o n 255 469
   
The net cash flows incurred by the PBR contract were: 
Cash flows from operating activities 255 469
N et 	 c a s h 	 i n fl o w 255 469
(Loss)/earnings per share – Basic & diluted (pence) 2.5 7.4 
Adjusted earnings per share – Basic & diluted (pence) 2.5 7.4
6634 Eclectic AR 2014_5 _TP.indd   34 31/10/2014   13:10 Financials
Eclectic Bar Group plc Annual Report 2014 35
11. Earnings per share
Basic earnings per share amounts are calculated by dividing net income for the period attributable to ordinary 
shareholders of Eclectic Bar Group plc by the weighted average number of ordinary shares outstanding during  
the year.
Diluted earnings per share amounts are calculated by dividing the net profit attributable to ordinary equity holders 
of the parent by the weighted average number of ordinary shares outstanding during the year plus the weighted 
average number of ordinary shares that would be issued on conversion of all the dilutive potential ordinary shares 
into ordinary shares.
The following reflects the income and share data used in the basic and diluted earnings per share computations:
Basic earnings per share
 
Continuing
operations
Discontinued
operations
Period 
ended
29 June 
2014 
Continuing
operations
Discontinued
operations
Period 
ended
30 June 
2013
(Loss)/profit for the period (£’000) (525) 255 (270) 93 469 562
Basic weighted number of shares 
(number) 10,173,068 10,173,068 10,173,068 6,300,000 6,300,000 6,300,000
L os s ) / e a r n i n g s 	 p e r 	 s h a r e 	 (p e n c e )	 
– Basic (pence) (5.2) 2.5 (2.7) 1.5 7.4 8.9
B a s i c 	 a d j us t e d 	 e a r n i n g s 	 p e r 	 s h a r e
 
Continuing
operations
Discontinued
operations
Period 
ended
29 June 
2014
Continuing
operations
Discontinued
operations
Period 
ended
30 June 
2013
Profit for the period before  
highlighted items (£’000) 700 255 955 123 469 592
Basic adjusted weighted  
number of shares (number) 10,173,068 10,173,068 10,173,068 6,300,000 6,300,000 6,300,000
A d j us t e d 	 e a r n i n g s 	 p e r 	 s h a r e	 
– Basic (pence) 6.9 2.5 9.4 2.0 7.4 9.4
D i l u t e d 	 b a s i c 	 e a r n i n g s 	 p e r 	 s h a r e
The impact of dilutive shares on the weighted average number of shares is summarised below:
 Number
Weighted average number of shares for Basic EPS 10,173,068 
Dilutive effect of share options 24,893
W e i g h t e d 	 a v e r a g e 	 n u m b e r 	 o f 	 s h a r e 	 fo r 	 D i l u t e d 	 E PS 10,197,961 
6634 Eclectic AR 2014_5 _TP.indd   35 31/10/2014   13:10 36 Eclectic Bar Group plc Annual Report 2014
NOTES TO ThE CONSOLIDATED FINANCIAL STATEMENTS
continued
11. Earnings per share (continued)
As the Group made a loss from continuing operations, all potential ordinary shares are deemed to be anti-dilutive. 
Therefore the diluted and basic earnings per share for continuing operations are the same. No share options were  
in issue for the prior period, therefore there were no dilutive shares in the comparative period.
 
Continuing
operations
Discontinued
operations
Period 
ended
29 June 
2014 
Continuing
operations
Discontinued
operations
Period 
ended
30 June 
2013
(Loss)/profit for the period (£’000) (525) 255 (270) 93 469 562
Diluted weighted number  
of shares (number) 10,173,068 10,197,961 10,173,068 6,300,000 6,300,000 6,300,000
L os s ) / e a r n i n g s 	 p e r 	 s h a r e 	 (p e n c e )	 
– 	 D i l u t e d 	 (p e n c e ) (5.2) 2.5 (2.7) 1.5 7.4 8.9
A d j us t e d 	 d i l u t e d 	 e a r n i n g s 	 p e r 	 s h a r e
 
Continuing
operations
Discontinued
operations
Period 
ended
29 June 
2014 
Continuing
operations
Discontinued
operations
Period 
ended
30 June 
2013
Profit for the period (£’000) 700 255 955 123 469 592
Diluted weighted number of shares 
(number) 10,197,961 10,197,961 10,197,961 6,300,000 6,300,000 6,300,000
L os s ) / e a r n i n g s 	 p e r 	 s h a r e 	 (p e n c e ) 	 –	
A d j us t e d 	 d i l u t e d 	 (p e n c e ) 6.9 2.5 9.4 2.0 7.4 9.4
6634 Eclectic AR 2014_5 _TP.indd   36 31/10/2014   13:10 Financials
Eclectic Bar Group plc Annual Report 2014 37
1 2 . 	 Pr ope r t y , 	 p l a n t 	 a nd 	 equ i pm en t
 
 
 
 
Computers
£’000
Motor
vehicles
£’000
Fixtures,
Fittings &
equipment
£’000
 Leasehold
improvement
£’000
Buildings
improvement
£’000
Assets in the
course of
construction
£’000
 
total
£’000
Cos t       
At 24 June 2012 153 154 4,775 3,586 – – 8,668
Additions 18 – 599 124 – 6 747
Acquired – – 60 40 – – 100
Disposals – – (62) (130) – – (192)
At 30 June 2013 171 154 5,372 3,620 – 6 9,323
Transfers 31 – 627 576 – (1,234) – 
Additions 128 – 1,531 323 – 1,228 3,210 
Acquired – – 179 465 428 – 1,072
Disposals – (40) –  –  –  – (40)
At 29 June 2014 330 114 7,709 4,984 428 – 13,565
       
D ep r ec i a t i o n      
At 24 June 2012 99 42 1,896 782 – – 2,819
Charge for the period 29 27 886 216 – – 1,158
Disposals – – (62) (28) – – (90)
At 30 June 2013 128 69 2,720 970 –  – 3,887
Charge for the period 49 24 998 374 3 – 1,448
Disposals – (40) –  –  –  – (40)
At 29 June 2014 177 53 3,718 1,344 3  – 5,295
       
Net book value
29 June 2014 153 61 3,991 3,640 425 – 8,270
        
Net book value
30 June 2013 43 85 2,652 2,650 – 6 5,436
Assets acquired relate to assets acquired as part of business combinations.
As the period ended 29 June 2014, the net book of assets held under finance leases was £21,000. 
6634 Eclectic AR 2014_5 _TP.indd   37 31/10/2014   13:10 38 Eclectic Bar Group plc Annual Report 2014
NOTES TO ThE CONSOLIDATED FINANCIAL STATEMENTS
continued
13. Intangible assets
 
 
 
Group
Goodwill
£’000
Cos t 
At 30 June 2013 7,189
Additions 866
At 29 June 2014 8,055
  
Amortisation 
At 30 June 2013 2,591
At 29 June 2014 2,591
  
Net book value 
At 30 June 2013 4,598
At 29 June 2014 5,464
Intangible asset additions consist of goodwill acquired 
by the Group as a result of the business combinations 
detailed in note 4.
Impairment review
The carrying value of goodwill arising on acquisition is 
reviewed at each balance sheet date to assess whether 
there has been any impairment. Each acquired site or 
group of sites represents a cash generating unit (CGU). 
Goodwill is allocated to the site that it arose on. 
The recoverable amount of the goodwill has been 
determined based on a value in use calculation using 
cash flow projections from financial budgets approved 
by senior management covering a five year period. 
Cash flow beyond the five year period are extrapolated 
assuming a terminal growth of 1.5% that reflects the 
expected growth based on market research. The pre-tax 
discount rate applied to cash flow projections is 9.8%. 
To assess for impairment, the value in use of the CGU is 
compared to the goodwill. If the resultant net present 
value of the discounted cash flows is less than the 
carrying value for goodwill the difference is written off 
through the income statement.
It was concluded that the fair value less costs of  
disposal did not exceed the value in use. As a result  
of this analysis, management has not recognised any 
impairment charge against goodwill as at 29 June 2014. 
 
The calculation of value in use for all CGUs is most 
sensitive to the following assumptions
–  Discount rates
–  Growth rates used to extrapolate cash flows beyond 
the forecast period
–  Growth in expenses including rent based on rent 
reviews
D i sc ou n t 	 r a t es – The discount rate calculation is based 
on the specific circumstances of the Group and its 
operating segments and is derived from its weighted 
average cost of capital (WACC). The WACC takes into 
account both debt and equity. The cost of equity is 
derived from the expected return on investment by  
the Group’s investors. The cost of debt is based on  
the interest-bearing borrowings the Group is obliged  
to service.
Growth rates – Rates are based on published industry 
research and market conditions and economic factors 
such as consumer confidence including factors like job 
prospect, inflation, household disposable income and 
other. When determining the appropriate growth rates, 
management has also considered the regulatory 
environment.
G r o w t h 	 i n 	 e x p e n ses 	 i n cl ud i n g 	 r e n t – Eclectic’s main costs 
are drinks, labour and rent. Estimates regarding the drink 
cost is based on the past actual price movements as 
well as the expected results from supplier negotiations. 
Labour increases have been estimated in relation to the 
National Minimum Wage. Rent reviews are typically 
every five years and have not resulted in any material 
increases above inflation and open market rental rates 
movements in the local areas around each site. 
The headroom is dependent upon sensitivities to these 
and other assumptions. The largest element of goodwill 
is allocated to the portfolio of sites that the Group 
purchased in 2006. Management has assessed that a 
39% fall in sales at these sites would be required before 
the carrying value of goodwill exceeded its value in use. 
For other sites it has been determined that an average 
37% fall in sales would be required before the carrying 
value of goodwill exceeded its value in use. Similarly, the 
headroom is only sensitive to double-digit increases in 
the discount rate. The goodwill on all acquisitions has 
been reviewed and, in the opinion of the directors, there 
is no impairment to the carrying value at 29 June 2014 
(2013: nil).
6634 Eclectic AR 2014_5 _TP.indd   38 31/10/2014   13:10 Financials
Eclectic Bar Group plc Annual Report 2014 39
1 4 . 	 O t h e r 	 fi na nc i a l	 a s set s 	 a nd 	 l i a b i l i t i es
Financial assets
Group
As at
29 June
2014
L o ans 	 an d
 receivables
£’000
As at
30 June
2013
Loans and
 receivables
£’000
Assets as per balance sheet   
Trade and other receivables excluding prepayments 825 826
Cash and cash equivalents 461 558
 1,286 1,384
Financial liabilities
Interest bearing loans and borrowings 
Group Interest rate % Maturity
 As at
29 June
2014
£’000
As at
30 June
2013
£’000
L i a b i l i t i es 	 a s 	 p e r 	 b a l a n c e 	 s h e et    
Cu r r e n t    
Obligations under finance leases    21 26
Other loans:    
£1.950m bank loans (2013 – £1.434m) LIBOR + 3.25% Sept 2015 650 650
   671 676
     
Non-current    
Obligations under finance leases    – 21
Other loans:    
£1.950m bank loans (2013: £1.434m) LIBOR + 3.25% Sept 2015 163 784
£5m revolving loan facility LIBOR + 3.25% Mar 2017 1,638  – 
Loan from Avanti Capital Plc   – 7,302
    1,801  8,107 
Obligations under finance leases 
This relates to the Group’s obligations under finance leases in relation to company cars for senior employees.
£1.950m bank loan
This is a term loan arranged in September 2012. The amount outstanding on this facility at 29 June 2014 was £813,000, 
of which £650,000 is payable in the next 12 months.
£5m revolving credit facility
The purpose of this £5m revolving credit facility is to fund capital expenditure and new site acquisitions. The amount 
drawn down on the facility as at 29 June 2014 was £1,639,000, net of unamortised arrangement fees.
£7.302m loan from Avanti Capital Plc
This loan was fully repaid in November 2013 using funds raised from the Group’s listing on the Alternative  
Investment Market.
6634 Eclectic AR 2014_5 _TP.indd   39 31/10/2014   13:10 40 Eclectic Bar Group plc Annual Report 2014
NOTES TO ThE CONSOLIDATED FINANCIAL STATEMENTS
continued
1 4 . 	 O t h e r 	 fi n a nc i a l	 a s set s 	 a nd 	 l i a b i l i t i es (continued)
Trade and other payables
Group M a t u rit y
2014
£’000
2013
£’000
Trade payables Payable within 1 year 1,588 931
Other payables, accruals and provisions Payable within 1 year 1,803 1,627
   3,390 2,558
Details of the significant investments in which the company holds, directly or indirectly, 20% or more of the nominal 
value of any class of share capital are as follows:
 
 
 
 
 
 
 
holding
Proportion 
of voting 
rights and
shares 
held Nature of business
Eclectic Bars Ltd Ordinary shares 100% Funding entity
Newman Bars Ltd Ordinary shares 100% Management of bars
Chalice Bars Ltd Ordinary shares 100% Operation of bars
Barclub Trading Ltd* Ordinary shares 100%
Management 
& operation of bars
Barclub (Bath) Ltd** Ordinary shares 100% Dormant
Barclub (Embargo) Ltd** Ordinary shares 100% Dormant
Barclub (Brighton) Ltd** Ordinary shares 100% Dormant
Barclub (Friar Street) Ltd** Ordinary shares 100% Dormant
Barclub (Norwich) Ltd** Ordinary shares 100% Dormant
Barclub (Manchester) Ltd** Ordinary shares 100% Dormant
Barclub (Sidney Street) Ltd** Ordinary shares 100% Dormant
Barclub (Reading) Ltd* Ordinary shares 100% Dormant
Barclub (Peter Street) Ltd* Ordinary shares 100% Dormant
Sakura Bars Ltd** Ordinary shares 100% Dormant
Barclub (Cambridge) Ltd** Ordinary shares 100% Dormant
hSB Clubs Ltd** Ordinary shares 100% Dormant
*  held indirectly by Eclectic Bars Ltd
** held indirectly by Barclub Trading Ltd
15. Inventories
 
 
As at
29 June
2014
£000
As at
30 June
2013
£000
Goods for re-sale 455 306
 455 306
The cost of inventories recognised as an expense and included in cost of sales amounted to £5,011,000  
(2013: £4,334,000). 
6634 Eclectic AR 2014_5 _TP.indd   40 31/10/2014   13:10 Financials
Eclectic Bar Group plc Annual Report 2014 41
16. Trade and other receivables
 
As at
29 June
2014
£’000
As at
30 June
2013
£’000
Trade receivables 168 209
Other receivables 657 617
Prepayments and  
accrued income 825 470
 1,650 1,296
Trade receivables are non-interest bearing and  
are payable on 30 day terms. All outstanding trade 
receivables are considered to be recoverable.
1 7 . 	 Ca s h 	 a nd 	 c a s h 	 equ i v a l en t s
 
As at
29 June
2014
£’000
As at
29 June
2013
£’000
Cash at bank and at hand 461 558
Cash and cash equivalents 461 558
18. Issued capital and reserves
Ordinary shares called up and fully paid
   Period ended 29 June 2014
Thousands £’000
Ordinary shares at £0.25 each 12,923  3,231 
On incorporation on 19 November, the Company issued 
6,299,996 shares to the owners of Eclectic Bars Ltd  
(the former parent company of the Group) in exchange 
for the entire issued share capital of that company. 
On 28 November 2013, the Group placed a further 
6,562,500 ordinary shares on the Alternative Investment 
Market (AIM) at a listing price of £1.60.
On 31 March 2014, the Group issued a further 60,241 
ordinary shares to the owners of Newman Bars Limited, 
as part of the consideration paid in exchange for 100% 
of the issued share capital of Newman Bars Limited and 
its subsidiary Chalice Bars Limited. See note 4 for further 
details. The ordinary shares issued have the same rights 
as the other shares on issue.
Share premium
 £’000
At 1 July 2013
Increase on 28 November 2013 8,859
Increase on 31 March 2014 85
Directly attributable IPO costs taken to equity (851)
At 29 June 2014 8,093 
M erger	reser v e
This reserve represents the value passed on to the 
existing shareholders of Eclectic Bars Limited, the former 
parent company of the Group, as part of the share-for-
share swap with Eclectic Bar Group plc which took place 
on incorporation of the new parent entity.
Other reserves
This reserve contains the equity value of share based 
payments issued to date. 
 
19. Share based payments
Employee Share Option Plan (ESOP)
Under the Employee Share Option Plan (ESOP), share 
options of the parent are granted to employees of the 
Group with more than 12 months of service. The exercise 
price of the share options is equal to the market price  
of the underlying shares on the date of grant. The share 
options vest in stages provided the employee remains in 
employed on the vesting date. 25% of the options issued 
vest on 30 June 2014. A further 25% of the options vest  
on 30 June 2015, and so on until all options are vested. 
There are no performance conditions associated with 
these options. The fair value of the options was estimated 
at the grant date using the Black Sholes option pricing 
model, taking into account the terms and conditions 
upon which the share options were granted. The 
contractual term of each option ranges from one to  
four years. There are no cash settlement alternatives.
The expense recognised for employee services during 
the year is shown in the following table:
 
Period
 ended 
29 June
2014
£’000
Period
 ended
30 June
2013
£’000
Total expense arising from 
share-based payment 
transactions 76  – 
6634 Eclectic AR 2014_5 _TP.indd   41 31/10/2014   13:10 42 Eclectic Bar Group plc Annual Report 2014
NOTES TO ThE CONSOLIDATED FINANCIAL STATEMENTS
continued
19. Share based payments (continued)
M o v e m e n t s 	 i n 	 t h e 	 y e a r
The following table illustrates the number (No.) and weighted average exercise prices (WAEP) of, and movements in, 
share options during the year:
 No. W AE P 	 ( £ )
Outstanding at 1 July 2013 – – 
Granted during the year 942,441 1.60
Forfeited during the year (71,436) – 
Exercised during the year –  – 
Expired during the year – – 
Outstanding at 29 June 2014 871,005 1.60
E x e rci sa b l e 	 a t 	 29 	 J u n e 	 2 0 1 4 –  – 
 
The weighted average remaining contractual life for the share options outstanding as at 29 June 2014 is 6 years.  
The weighted average fair value of options granted during the year was £0.30. The exercise price for all options 
outstanding at the end of the year was £1.60.
Share options outstanding at the end of the year have the following expiry date and exercise prices:
Grant-vest
E x p i r y 	 d a t e
30 June
E xe r ci s e
 price in £
per share
 option
Share
 options
(thousands)
2013-14 2018 1.60 207
2013-15 2019 1.60 207
2013-16 2020 1.60 207
2013-17 2021 1.60 207
2014-14 2018 1.70 11
2014-15 2019 1.70 11
2014-16 2020 1.70 11
2014-17 2021 1.70 10
   871
The fair value of options granted during the period determined using the Black-Scholes valuation model was  
as follows:
variable
Nov 13 
1yr Scheme
Nov 13 
2yr Scheme
Nov 13 
3yr Scheme
Nov 13 
4yr Scheme
Mar 2014 
1yr Scheme
Mar 2014 
2yr Scheme
Mar 2014 
3yr Scheme
Mar 2014 
4yr Scheme
Stock Price £1.60 £1.60 £1.60 £1.60 £1.70 £1.70 £1.70 £1.70
Exercise Price £1.60 £1.60 £1.60 £1.60 £1.70 £1.70 £1.70 £1.70
Dividend Yield 3.78% 3.78% 3.78% 3.78% 3.78% 3.78% 3.78% 3.78%
Option Term (years) 2.29 2.79 3.30 3.80 2.13 2.63 3.13 3.63
Risk-less rate 1.96% 1.96% 1.96% 1.96% 1.96% 1.96% 1.96% 1.96%
volatility 25% 30% 35% 40% 25% 30% 35% 40%
Fair value 0.195 0.256 0.321 0.388 0.262 0.363 0.454 0.548
6634 Eclectic AR 2014_5 _TP.indd   42 31/10/2014   13:10 Financials
Eclectic Bar Group plc Annual Report 2014 43
19. Share based payments (continued)
The expected life of the share options is based on 
historical data and current expectations and is not 
necessarily indicative of exercise patterns that may 
occur. The expected volatility reflects the assumption 
that the historical volatility over a period similar to the  
life of the options is indicative of future trends, which  
may not necessarily be the actual outcome either.
2 0. 	 D i v i dend s 	 pa i d 	 a nd 	 p r oposed
No dividends were paid or proposed during the period.
21. Trade and other payables
 
 
As at
29 June
2014
£’000
As at
30 June
2013
restated
£’000
Trade payables 1,588 931
Other payable 156 136
Accruals 853 810
Other taxes and  
social security costs 592 547
 3,189 2,424
22. Provisions
The Group has made a provision in respect of expected 
increases in rent costs as a result of rent reviews on 
operating leases. Operating leases on commercial 
property are subject to regular rent reviews by landlords 
in accordance with the lease agreement. 
Management uses current open market rental rates  
in the local areas around each site and compares  
this to the Group’s current lease terms. The provision 
recognised represents the best estimate of any expected 
increase in rental payments as a result of rent reviews 
applied retrospectively to the date of the last rent review 
as per the lease agreement.
For each operating lease on which a rent review is  
due, management estimates a rental payment increase 
of between 2% to 5%, based on current open market 
rental rates.
 
 
Rent 
review 
provision
£’000
Balance at 30 June 2013 134
Additional provision charged to the income 
statement 89
Unused amounts reversed during the period (22)
Balance at 29 June 2014 201
23. Related party transactions
Group
On 28 November 2013, the Group repaid the full 
outstanding loan balance of £7,302,000 to Avanti Capital 
Plc, the former ultimate controlling company of Eclectic 
Bars Limited and its subsidiaries. After this date, Avanti 
Capital Plc was no longer a related party of the Group.
On the 26 March 2014 the Group exchanged contracts 
to acquire Lowlander Bar and Brasserie in Covent 
Garden, London.
The Lowlander business was held through two 
companies, Newman Bars Limited (‘Newman’) and 
Chalice Bars Limited (‘Chalice’). The Group acquired 
100% of Newman, and a 33% minority interest in its 
subsidiary Chalice for a consideration of £850,000. 
Newman owned 67% of Chalice and therefore the 
Group now own 100% of both companies.
Jim Fallon, the Company’s Chairman, was a 34.17% 
shareholder in the businesses being acquired and 
therefore the acquisition of Lowlander constituted a 
related party transaction under Rule 13 of the AIM Rules. 
The Company’s directors (excluding Jim Fallon) consider 
that, having consulted with Panmure Gordon (UK) 
Limited, the Company’s nominated adviser, the terms  
of the acquisition of Lowlander are fair and reasonable 
in so far as Company’s shareholders are concerned.
Jim Fallon received £190,445 in cash and £100,000 cash 
equivalent in Eclectic shares. These shares are subject to 
the same restrictions outlined in the Placing Agreement 
as set out on page 81 of the Company’s Admission 
Document.
The Group considers its key management personnel to 
be the directors of the company. The compensation of 
key management personnel is disclosed in the Directors 
Report on page 14.
Transactions between the Group and its subsidiaries, 
which are related parties, have been eliminated  
on consolidation and are not disclosed in this note.
6634 Eclectic AR 2014_5 _TP.indd   43 31/10/2014   13:10 44 Eclectic Bar Group plc Annual Report 2014
NOTES TO ThE CONSOLIDATED FINANCIAL STATEMENTS
continued
2 4 . 	 Com m i t m en t s	
Operating lease commitments
Total minimum lease payments under non-cancellable 
operating leases are as follows:
 
 As at
29 June
2014
 £’000
As at
30 June
2013
£’000
Operating leases payment due:
Within one year 1,847 1,355
In two to five years 7,174 5,120
In over five years 24,537 18,320
 33,558 24,795
All operating lease commitments relate to non-
cancellable leases on the Group’s portfolio of trading 
sites. As the period ended 29 June 2014, the Group  
had one lease that included a contingent rent clause 
equating to 5% of revenue in excess of £1.5 million in  
any 12 month period. This agreement does not have  
a material impact on the Group.
The Group does not have any renewal, purchase  
or escalation clauses in its operating leases, nor are  
there any restrictions imposed by its operating leases.
Finance lease commitments
At 29 June 2014, the Group had total minimum 
commitments under finance leases as set out below:
 
 
As at 
29 June 
2014
£’000
As at 
30 June
 2013
£’000
Amount payable:  
Within one year 21 26
In two to five years – 21
 21 47
Future interest (1) (2)
Present value of finance  
lease liabilities 20 45
Finance lease commitments relate to the Group’s 
obligations under finance leases in relation to company 
cars for senior employees.
2 5 . 	 F i n a n ci a l 	 r i s k 	 m a n a g e m e n t 	 o b j e c t i v es 	 a n d 	 p o l i ci es
The Group’s financial instruments comprise cash, loans 
and borrowings and liquid resources, and various items, 
such as trade receivables and trade payables that arise 
directly from its operations. 
The Group does not enter into derivatives or hedging 
transactions.
It is, and has been throughout the period under review, 
the Group’s policy that no trading in financial instruments 
shall be undertaken.
The main risks arising from the Group’s financial 
instruments are investment risk, interest rate risk and 
liquidity risk. The Group does not have a material 
exposure to foreign currency risk. The board reviews 
policies for managing each of these risks, and they  
are summarised as follows:
Interest rate risk
The Group borrows in currencies to match the 
denomination at fixed and floating rates of interest to 
generate the desired interest profile and to manage  
the Group’s exposure to interest fluctuations.
The following table demonstrates the sensitivity to a 
reasonably possible change in interest rates, with all 
other variables held constant, of the Group’s profit 
before tax (through the impact on floating rate 
borrowings): 
2014
Increase/
decrease
in basis
 points
Effect 
o n 	 p ro fi t 	
b e f o re 	 t a x
 2014
£000
Sterling + 100 (25)
Sterling - 100 25
2013
Sterling + 100 (2)
Sterling - 100 2
    
Liquidity risk
The Group’s policy is to finance its operations and 
expansion through working capital and, in the case of 
investing in target companies, to raise an appropriate 
level of acquisition finance.
The table below summarises the maturity profile of the 
Group’s financial liabilities at 29 June 2014 and 30 June 
2013 based on contractual (undiscounted) payments. 
6634 Eclectic AR 2014_5 _TP.indd   44 31/10/2014   13:10 Financials
Eclectic Bar Group plc Annual Report 2014 45
2 5 . 	 F i n a n ci a l 	 r i s k 	 m a n a g e m e n t 	 o b j e c t i v es 	 a n d 	 p o l i ci es (continued)
Year ended 29 June 2014
Total
£’000
On 
demand
£’000
Up to 1
year
£’000
1-2
 years
£’000
2-5
years
£’000
Interest-bearing loans and borrowings 813 – 650 163 –
Revolving credit facility 1,639 – – – 1,639
Trade payables 1,588 – 1,588 – –
       
Year ended 30 June 2013 
total
£’000
On 
demand
£’000
Up to 1
year
£’000
1-2
 years
£’000
2-5
years
£’000
Interest-bearing loans and borrowings 1,434 – 650 650 134
Loan from Avanti Capital plc 7,302 7,302 – – –
Trade payables 931 – 931 – –
At the end of the period ended 30 June 2013, the Group had a loan and accrued interest with Avanti Capital  
(the former parent company of the Group) of £7,302,000. This loan was fully repaid in November 2013 with funds 
raised from the listing of the Group on the Alternative Investment Market.
The Group aims to mitigate liquidity risk by managing cash generation by its operations. Investment is carefully 
controlled, with authorisation limits operating up to board level and cash payback periods applied as part of the 
investment appraisal process. 
Credit risk
There are no significant concentrations of credit risk within the Group. The maximum credit risk exposure relating  
to financial assets is represented by the carrying value as at the balance sheet date.
There is no material difference between the fair values and book values of any of the Group’s financial instruments.
Strategies for managing capital
The primary objective of the Group’s capital management is to ensure it is able to support its business and maximise 
shareholder value.
The Group manages its capital structure and makes adjustments to it, in light of economic conditions. To maintain  
or adjust the capital structure, the Group may return capital to shareholders or perhaps issue new shares. Following 
the listing of the Group on AIM in November 2014, the Group’s primary capital management objectives involved 
remaining within debt covenants whilst also seeking out suitable acquisition targets. 
The movement in cash and cash equivalents is reconciled to movements in debt as follows:
 
 
2014
£’000
2013
£’000
(Decrease)/increase in cash and cash equivalents (97) 272
Repayment of loan to Avanti Capital Plc 7,302 – 
(Increase)/decrease in other borrowings (561) 339
D e c r e a se / ( i n cr e a se ) 	 i n 	 d e bt 	 r esu l t i n g 	 f r o m 	 c a s h 	 fl o ws 	 6,644 611
Other non-cash movements (427) 184
Decrease in net debt in the period 6,217 795
Net debt at start of period (8,228) (9,023)
Net debt at end of period (2,011) (8,228)
6634 Eclectic AR 2014_5 _TP.indd   45 31/10/2014   13:10 46 Eclectic Bar Group plc Annual Report 2014
NOTES TO ThE CONSOLIDATED FINANCIAL STATEMENTS
continued
2 5 . 	 F i n a n ci a l 	 r i s k 	 m a n a g e m e n t 	 o b j e c t i v es 	 a n d 	 p o l i ci es 
(continued)
Co m p os i t i o n 	 o f 	 n et 	 d e bt
Net debt is made up as follows:
 
 
2014
£’000
2013
£’000
Cash and cash equivalents 461 558
Short term borrowings (650) (650)
Long term borrowings (1,801) (8,107)
Finance lease payables (21) (29)
Total net debt (2,011) (8,228)
Fair value hierarchy
The Company uses the following hierarchy for 
determining and disclosing the fair value of financial 
instruments by valuation technique:
–  Level 1: quoted (unadjusted) prices in active markets 
for identical assets or liabilities
–  Level 2: other techniques for which all inputs which 
have a significant effect on the recorded fair value  
are observable, either directly or indirectly
–  Level 3: techniques which use inputs that have  
a significant effect on the recorded fair value that  
are not based on observable market data
Group
Total
£’000
L e v e l 	 1
£’000
L e v e l 	 2
£’000
L e v e l 	 3
£’000
Loans  2,452  –  –  2,452 
The fair value of interest bearing loans and borrowings  
is detailed below:
  As at 29 June 2014 As at 30 June 2013
 
Ca r r y i n g
 value
Fair 
value
Carrying
 value
Fair 
value
Interest-bearing 
loans and 
borrowings 1,802 1,815 784 830
Management is not aware of any significant changes in 
the market rates offered on these loans since they were 
renewed in March 2014.
26. Events after the reporting period
On the 18 July 2014 a new company was formed called 
Eclectic Icon Ltd. This company is a 100% subsidiary  
of Eclectic Bar Group plc. 
In a share sale and purchase agreement dated 24 July 
2014 Eclectic Bar Group plc agreed to transfer 100%  
of its holding in Eclectic Bars Ltd (6,310,000 ordinary 
shares of £0.0001) to Eclectic Icon Limited in return  
for the allotment and issue of 14,999,999 ordinary shares 
in that company. 
On the same day Eclectic Icon Ltd carried out a capital 
reduction whereby its share capital was reduced from 
£15,000,000 divided into 15,000,000 shares of £1.00 each 
to £1,500,000 divided into 15,000,000 shares of £0.10 
each, thereby creating £13,500,000 of realised profits 
which would be available in the future for distribution  
by way of dividends to Eclectic Bar Group plc.
In addition to that, the Group has also:
Signed an “agreement to lease” on a new site in 
Liverpool a key target city for the Group. The Group 
intends to develop this unit in the financial year ending 
June 2015 to Lola Lo, bringing the total number of  
Lola Lo units to 11. The new acquisition is subject to  
the satisfactory outcome of planning and licensing 
applications. 
Signed a new 20 year lease on a new site in Sheffield,  
a key target city for the Group, bringing the total number 
of sites to 23. The property is situated on the popular  
West Street, set over two levels with ground floor and first 
floor totalling 6,500 square feet and also includes its own 
exclusive outside area. The Group intends to develop  
this unit in the financial year ending June 2015 to a  
Lola Lo and will include the Group’s popular ‘Island Grill’ 
food offering. 
The Group has also concluded a significant extension  
on the Embargo Republica, Kings Road lease to 2033. 
The club and terrace space has been upgraded and 
the venue refitted over the summer to include the facility 
for the introduction of live music and fully reopened at 
the end of August 2014.
6634 Eclectic AR 2014_5 _TP.indd   46 31/10/2014   13:10 Financials
Eclectic Bar Group plc Annual Report 2014 47
27. Auditor remuneration
Period
ended
29 June
2014
£’000
Period
ended
30 June
2013
£’000
Group 67 32
Fees for non-audit work 276 –
343 32
2 8 . 	 R ec onc i l i a t i on 	 to 	 E B I TD A
Group profit before tax can be reconciled to Group 
EBITDA as follows:
Period
 ended
29 June
2014
£’000
Period
ended
30 June
2013
£’000
Loss before tax for the year (181) 919
  Add back depreciation 1,448 1,158
  Add back net interest paid 404 697
  Add back highlighted items 1,225 30
G r ou p 	 E B I T D A 	 b e fo r e	 
highlighted items 2,896 2,804
 Discontinued operations  
 – PBR revenue (329) (555)
G r ou p 	 E B I T D A 	 b e fo r e	 
highlighted items and 
discontinued operations 2,567 2,249
29. Group arrangements
The Group consists of 3 main entities, which each 
perform a specific role in the business as a whole. All 
cash is controlled by Eclectic Bars Limited, the former 
parent entity of the Group which is 100% owned by 
Eclectic Bar Group Plc. All trading and operating leases 
are managed by Barclub Trading Limited, the principal 
trading entity of the Group. The Group also contains a 
number of dormant subsidiaries which hold operating 
leases. The risks, rewards and expenses relating to all 
operating leases are borne by Barclub Trading Limited.
6634 Eclectic AR 2014_5 _TP.indd   47 31/10/2014   13:10 48 Eclectic Bar Group plc Annual Report 2014
PARENT COMPANY ACCOUNTS
For the period from 12 September 2013 to 29 June 2014
The accounts for the parent entity, Eclectic Bar Group plc, are presented below. Please note that these accounts  
are presented using UK GAAP.
Co m p a n y 	 p r o fi t	 a n d 	 l os s 	 s t a t e m e n t
 Notes
Period 
ended 
29 June 
2014 
£’000
Administrative expenses – exceptional items (683)
O p e r a t i n g 	 p r o fi t 2 (683)
Interest receivable 236
L os s 	 o n 	 o r d i n a r y 	 a c t i v i t i es 	 b e fo r e 	 t a x a t i o n (447)
Tax on loss on ordinary activities 5 15
L os s 	 fo r 	 t h e 	 fi n a n ci a l	 y e a r 8 (432)
All results were derived from continuing operations.
6634 Eclectic AR 2014_5 _TP.indd   48 31/10/2014   13:10 Financials
Eclectic Bar Group plc Annual Report 2014 49
Co m p a n y 	 b a l a n c e 	 s h e et
Notes
As at
29 June
2014
£’000
F i x e d 	 a s set s
Investments 6 2,469
2,469
Cu r r e n t 	 a s set s
Debtors 7 8,499
Net current assets 8,499
Total assets 10,968
Net assets 10,968
Ca p i t a l 	 a n d 	 r ese r v es
Called up share capital 8 3,231
Share premium 9 8,093
Other reserves 9 76
Profit and loss account 9 (432)
Shareholders’ funds 10,968
These financial statements have been approved by the Board of Directors and signed on its behalf by:
J A Smith 
Director
30 October 2014
6634 Eclectic AR 2014_5 _TP.indd   49 31/10/2014   13:10 50 Eclectic Bar Group plc Annual Report 2014
1. Accounting policies
Basis of preparation 
The financial statements have been prepared under the historical cost convention. They are prepared in 
accordance with applicable accounting standards in the United Kingdom, and are prepared in sterling,  
which is the currency of the company’s primary economic environment.
These financial statements have been prepared for the period from incorporation on 12 September 2013  
to 29 June 2014. 
The company has adopted FRS 26, and has invoked the FRS 29.0D exemption not to give FRS 29 disclosures about 
financial instruments.
Going concern
The company’s business activities, together with the factors likely to affect its future development, performance  
and position are set out in the Strategic report.
At 29 June 2014, the company had net current assets of £8.5 million. This consists of intercompany loans receivable 
from other Group companies.
The company has two principle sources of funding. 
•  As at the year-end £8.5 million was owed by Eclectic Bars Limited (100% owned subsidiary) and is payable  
on demand to the parent company (Eclectic Bar Group Plc funds Eclectic Bars Limited, which in turn funds  
the day to day cash requirement of the Group).
•  The company also has the ability to raise further funds through the offer of new shares on the Alternative 
Investment Market. These funds net of issue costs would be available to fund the activities of the Group.
Based on the above, the directors have a reasonable expectation that the company has adequate resources to 
continue in operational existence for the foreseeable future. Thus they continue to adopt the going concern basis  
of accounting in preparing the annual financial statements.
Investments
Fixed asset investments are initially stated at cost.
The carrying values of fixed asset investments are reviewed for impairment when events or changes in circumstances 
indicate the carrying value may not be recoverable.
Ta xa t i on
Current tax is provided at amounts expected to be paid or recovered using tax rates and laws that have been 
enacted or substantially enacted by the balance sheet date. 
D e f e r r e d 	 t a x a t i o n
Deferred taxation is recognised in respect of all timing differences that have originated but not reversed at the 
balance sheet date where transactions or events have occurred at that date that will result in an obligation to  
pay more, or right to pay less or to receive more, tax, with the following exceptions:
•  Provision is made for tax on gains arising from the revaluation (and similar fair value adjustments) of fixed assets,  
or gains on disposal of fixed assets that have been rolled over into replacement assets, only to the extent that,  
at the balance sheet date, there is a binding agreement to dispose of the assets. however, no provision is made 
where, on the basis of all available evidence at the balance sheet date, it is more likely than not that the taxable 
gain will be rolled over into replacement assets and charged to tax only where the replacement assets are sold.
•  Deferred tax assets are recognised only to the extent that the directors consider that it is more likely than not  
that there will be suitable taxable profits from which the future reversal of the underlying timing differences  
can be deducted.
Deferred tax is measured on an undiscounted basis at the tax rates that are expected to apply in the years in which 
timing differences reverse, based on tax rates and laws enacted or substantively enacted at the balance sheet date.
NOTES TO ThE PARENT COMPANY ACCOUNTS
For the period from 12 September 2013 to 29 June 2014
6634 Eclectic AR 2014_5 _TP.indd   50 31/10/2014   13:10 Financials
Eclectic Bar Group plc Annual Report 2014 51
1. Accounting policies
(continued)
Interest-bearing loans and borrowings
All interest-bearing loans and borrowings are initially recognised at net proceeds. After initial recognition debt is 
increased by the finance cost in respect of the reporting period, and reduced by payments made in respect of 
debts in the period.
Finance costs of debt are allocated over the term of the debt at a constant rate on the carrying amount.
A d m i n i s t r a t i v e 	 c os t s 	 – 	 e x c e pt i o n a l 	 i t e m s
Administrative costs are treated as exceptional items and disclosed separately in the profit and loss account above 
operating profit or loss if the matters are material and non-recurring, and require to be disclosed separately in order 
to give a true and fair view. Full details of these costs are disclosed in note 2.
2 . 	 A d m i n i s t r a t i v e 	 c os t s 	 – 	 e x c ept i ona l 	 i tem s
Period
ended
29 June
2014
£’000
Share issue costs 399
Listing costs 33 
Restructuring costs associated with IPO 175
FRS 2 share based payment charge 76
683
3. Interest receivable
Period
ended
29 June
2014
£’000
Amounts receivable from other Group companies 236
4 . 	 D i r ec to rs ’ 	 r emune r a t i on
No directors received any remuneration during the year.
6634 Eclectic AR 2014_5 _TP.indd   51 31/10/2014   13:10 52 Eclectic Bar Group plc Annual Report 2014
NOTES TO ThE PARENT COMPANY ACCOUNTS
For the period from 12 September 2013 to 29 June 2014
continued
5. 	 T a x
( a ) 	 T a x 	 o n 	 p r o fi t	 o n 	 o r d i n a r y 	 a c t i v i t i es
The tax is made up as follows:
Period
ended
29 June
2014
£’000
Cu r r e n t 	 t a x :
UK corporation tax on the loss for the year (note 5b)) –
D e f e r r e d 	 t a x :
(Origination)/reversal of timing differences (note 5(c)) (15)
Total tax credit on loss on ordinary activities (15)
(b) Factors affecting tax charge for the year
The tax assessed for the period is different from the standard rate of corporation tax in the UK of 22.5%. The 
differences are explained below:
Period
ended
29 June
2014
£000
Loss on ordinary activities before tax (447)
Loss on ordinary activities multiplied by blended rate of corporation tax in the UK of 22.5% (100)
Effects of:
Non-deductible expenses 100
Timing difference 15
Loss claimed for no consideration (15)
Current tax for the period (note 5(a)) –
Legislation to reduce the UK main rate of corporation tax from 23% to 21% with effect from 1 April 2014 and to 20% 
with effect from 1 April 2015 was enacted in July 2013. Accordingly, deferred tax balances at 29 June 2014 have 
been calculated based on these rates.
(c) Deferred tax
A deferred taxation asset has been provided at 29 June 2014 on the grounds that it meets the recognition criteria  
of FRS 19 – Deferred Taxation. The deferred taxation liability, using a tax rate of 20%, comprises the following:
Recognised in the balance sheet
Period
ended
29 June
2014
£’000
D e f e r r e d 	 t a x 	 a s set
Share options 15
15
Recognised in the balance sheet:
Included in debtors (Note 7) 15
6634 Eclectic AR 2014_5 _TP.indd   52 31/10/2014   13:10 Financials
Eclectic Bar Group plc Annual Report 2014 53
6. Investments
As at
29 June
2014
£’000
Investment in Eclectic Bars Limited 1,575
Investment in Newman Bars Limited 894
2,469
The company owns, directly or indirectly, 100% of the ordinary share capital of the following UK companies.
holding
Proportion
of voting
rights and
shares held Nature of business
Eclectic Bars Limited Ordinary shares 100% Management & operation of bars
Barclub Trading Ltd* Ordinary shares 100% Management & operation of bars
Newman Bars Limited Ordinary shares 100% Dormant
Chalice Bars Limited^ Ordinary shares 100% Dormant
Barclub (Bath) Ltd** Ordinary shares 100% Dormant
Barclub (Embargo) Ltd** Ordinary shares 100% Dormant
Barclub (Brighton) Ltd** Ordinary shares 100% Dormant
Barclub (Friar Street) Ltd** Ordinary shares 100% Dormant
Barclub (Norwich) Ltd** Ordinary shares 100% Dormant
Barclub (Manchester) Ltd** Ordinary shares 100% Dormant
Barclub (Sidney Street) Ltd** Ordinary shares 100% Dormant
Barclub (Reading) Ltd Ordinary shares 100% Dormant
Sakura Bars Ltd** Ordinary shares 100% Dormant
Barclub (Cambridge) Ltd** Ordinary shares 100% Dormant
hSB Clubs Ltd** Ordinary shares 100% Dormant
*  indirectly by Eclectic Bars Ltd
** held indirectly by Barclub Trading Ltd
^  held indirectly by Newman Bars Ltd
 
6634 Eclectic AR 2014_5 _TP.indd   53 31/10/2014   13:10 54 Eclectic Bar Group plc Annual Report 2014
7 . 	 Debto rs
As at
29 June
2014
£’000
Amounts due from group undertakings 8,484
Deferred tax asset 15
8,499
Amounts due from group undertakings are interest bearing and repayable on demand.  
8 . 	 C a p i ta l 	 a n d 	 r ese r v es	
Ordinary shares issued and fully paid
  As at 29 June 2014
Thousands £
Ordinary shares at £0.25 each 12,923 3,231 
Share premium
£’000
At 12 September 2013 –
Increase on 28 November 2013 8,859
Increase on 31 March 2014 85
Directly attributable IPO costs taken to equity (851)
At 29 June 2014 8,093
Other reserves consist of charges in respect of share options.
9. Reconciliation of shareholders’ funds and movements on reserves
 
 
 
 
 
 
 
Share
capital
£’000
 
 
Share
premium
£’000
 
 
Other
reserves
£’000
 
P ro fi t
and loss
account
£’000
Total
share-
holders’
funds
£’000
At 12 September 2013 – – – – – 
Shares issued 3,231 8,944 – – 12,175 
Directly attributable IPO costs taken to equity – (851) – – (851)
Share based payment charges – – 76 – 76 
Loss for the period – – – (432) (432)
At 29 June 2014 3,231 8,093 76 (432) 10,968
 
10. Related party transactions
On 31 March 2014, the company purchased the entire issued share capital of Newman Bars Limited and its subsidiary 
Chalice Bars Limited. One of the directors of Newman Bars Limited and Chalice Bars Limited, James Fallon is also  
a director of the company. The company paid cash of £794,000, funded by the company’s 100% owned subsidiary 
Eclectic Bars Limited, to shareholders of both businesses and issued 60,241 of ordinary shares at market value of  
£1.66 per share, equating to a value of £100,000 to James Fallon.
 
As at 29 June 2014, a loan of £8,484,000 is due from Eclectic Bars Limited. This loan is interest bearing and repayable 
on demand.
NOTES TO ThE PARENT COMPANY ACCOUNTS
For the period from 12 September 2013 to 29 June 2014
continued
6634 Eclectic AR 2014_5 _TP.indd   54 31/10/2014   13:10 Corporate information
Eclectic Bar Group plc Annual Report 2014 55
D i re c t o r s
Jim Fallon 
(Non-Executive Chairman)  
appointed 12 September 2013
Richard Kleiner  
(Non-Executive Director)  
appointed 1 February 2014
Clive Watson 
(Non-Executive Director)  
appointed 20 November 2013
Reuben harley 
(Chief Executive Officer)  
appointed 12 September 2013
John Smith 
(Chief Financial Officer) 
appointed 12 September 2013
Leigh Nicolson  
(Chief Operating Officer)  
appointed 28 July 2014
 
Co m p a n y 	 Se cr et a r y
John Smith
appointed 20 November 2013
Re g i s t e r e d 	 O f fi c e	
36 Drury Lane
London
WC2B 5RR
Financial Adviser,  
Nominated Adviser and Broker 
Panmure Gordon (UK) Limited
One New Change
London
EC4M 9AF
Auditors 
Ernst & Young LLP
1 More London Place
London
SE1 2AF
L a w y e r s 	 t o 	 t h e 	 G r ou p	
Berwin Leighton Paisner LLP
Adelaide house
London Bridge
London
EC4R 9hA
Bankers 
Barclays Bank 
1 Churchill Place
London
E14 5hP
Financial PR 
Instinctif
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London
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Registrars
Equiniti Limited
Aspect house
Spencer Road
Lancing
West Sussex
BN99 6DA
DIRECTORS, OFFICERS AND ADvISERS
6634 Eclectic AR 2014_5 _TP.indd   55 31/10/2014   13:10 56 Eclectic Bar Group plc Annual Report 2014
NOTES
6634 Eclectic AR 2014_5 _TP.indd   56 31/10/2014   13:10 eclectic is a leading operator of premium bars in the UK.  
The Group’s portfolio comprises 23 venues (21 at the end  
of the year) located in major towns and cities, predominantly 
targeting a customer base of sophisticated students midweek 
and stylish over 21s and young professionals at weekends.  
The Group focuses on delivering added value for its customers, 
with premium product ranges, high-quality music and 
entertainment, and a commitment to high service levels  
and standards. eclectic trades across its estate under a variety 
of formats, including embargo Republica, Lola Lo, sakura,  
Dirty Blonde, Lowlander, Coalition, Po na na and f ez Club.
Co nTenTs
Strategic Report
01 Highlights
02 Chairman’s statement
04 Chief executive’s Review
08 Principal risks and uncertainties
10 Brands and concepts
Governance
12 Directors’ Report
16 Directors’ Responsibility statement
17  independent Auditor’s Report to the 
members of eclectic Bar Group plc
Financials
18 Consolidated income statement
19 Consolidated balance sheet
20 	 C o n so l i d at ed 	 s t at e m e n t 	 o f 	 c a s h 	 fl ow s
21  Consolidated statement of changes  
in equity
22 	 	 N o t es 	 t o 	 t h e 	 c o n so l i d at ed 	 fi n a n ci a l 	
statements
48 Parent company accounts
50 n otes to the parent company accounts
Corporate information
55 	 D i re c t o r s, 	 o f fi c e r s 	 a n d 	 a d v i se r s
Designed and produced by instinctif Partners  www.instinctif.com
6634 Eclectic AR 2014_Cover_TP.indd   2 31/10/2014   13:13 Eclectic Bar Group plc 
36 Drury Lane
London WC2B 5RR
Tel:  020 7376 6300
Fax: 020 7823 3756
www.eclecticbars.co.uk
A TRAnsfo RmATion AL yeAR
Annual Report 201 4
6634 Eclectic AR 2014_Cover_TP.indd   1 31/10/2014   13:13