BAR and club group Ultimate Leisure yesterday signalled further expansion through acquisition next year, as it posted results in line with expectations.

The Newcastle-based plc, which is valued at about £94m on the Alternative Investment Market, admitted that as a result of a series of acquisitions it had been a year of transition and consolidation.

But it retained a positive outlook and had cash in the bank to add to its portfolio of 50 sites, which includes 14 bars, seven nightclubs and two hotels.

The company posted an 11.8 per cent lift in turnover to £36.3m for the year ending June 30, while like-for-like sales were up just one per cent.

Pre-tax profits, however, fell from £1.5m last year to £400,000 as a result of the closure of a number of outlets for refurbishment and increased investment in marketing initiatives.

Chairman Mark Jones said: "The investment in our core estate is now complete, and we believe that the group is in a better position than ever before.

"We continue to be confident about delivering value to shareholders in the current year and beyond."

Because of its expansion the firm now employs about 3,000 people, compared to 1,250 a year ago and has doubled in size in less than three months.

Its venues in this region include Blu Bambu, in Newcastle and Sunderland, the Sea nightclub on Newcastle's Quayside, Chase, in Durham, and The Rex hotel, in Whitley Bay.

In March this year, Ultimate Leisure raised £25m from a share issue to fund its acquisitions.

It subsequently bought four Bel and Dragon sites from Gourmet Holdings and the Living Room chain of 13 branded-bar restaurants, previously owned by the Est Est Est chain.

To reflect its new focus, it now plans to change its name to Premium Bars and Restaurants Plc.

Mr Jones said: "We are a totally different group to the one we were two years ago.

"It is important that the businesses we have bought we integrate properly. Our appetite for acquiring good quality premium assets is still there."