bar and nightclub operator Ultimate Leisure plans to expand outside its traditional North-East heartland.

The Newcastle business operates 23 venues in the North-East,and is planning sites in Nottingham and Rotherham.

More opportunities in the North are being considered.

The expansion was announced as Ultimate unveiled a 24 per cent rise in pre-tax profits to £2.6m for the six months to December 31, on turnover of £10.4m, a rise of 25 per cent.

Ultimate opened a 1,300-capacity nightclub in Sunderland in October.

It also acquired the freehold of Klute in Durham City, and bought the Gresham Hotel in Jesmond.

The group has also been granted the first 2am licence in the Bigg Market area of Newcastle and plans to open a 1,300-capacity venue there by autumn this year.

Allan Rankin, chief executive, said: "These results mark the end of yet another period of sustained growth with all our objectives met.

"Turnover and profit before tax have increased by around 25 per cent with no evidence of pressure to gross margins or to the bottom line."