A bar and nightclub operator said intense competition in the leisure industry caused by more relaxed licensing regulations had not stopped it posting a 31 per cent rise in profits.

Ultimate Leisure, which is based in Newcastle and has 20 sites across the region, declared pre-tax profits of £8.9m and a 35 per cent rise in turnover.

The group, which announced interim results yesterday, said its healthy standing had been achieved despite a huge increase in the number of late night venues.

Finance director Craig Bell said: "This is the toughest time in the leisure industry for ten years. Looser regulation has meant a proliferation in venues. Every man and his dog thinks they can open a bar at the moment. In the past five years, 54 bars have opened in the centre of Newcastle alone."

Mr Bell said the results had been achieved through a policy of selecting only prime sites.

The firm has 30 sites across the UK, including four in Belfast and 13 in Newcastle city centre.

Among its Newcastle venues is The Lodge, a bar opened as a joint venture with TV stars Ant and Dec.