AYRSHIRE restaurant and bar group Buzzworks Holdings has reported a 14 per cent rise in turnover to £18.4 million for the year to April 2019 but exceptional costs relating to property renovation resulted in a pre-tax loss.

Buzzworks achieved an operating profit of £907,566 before exceptional costs in the 52 weeks to April 28, up from £663,108 in the prior 12 months.

The family-run company, which operates 12 venues across Scotland and employs more than 500 people, focused on the rise in underlying profitability and turnover growth, with chairman Colin Blair describing it as “an exciting period for the business”.

A spokesman for the company said a further two projects were planned for 2020, noting Buzzworks was not in a position to comment on these yet.

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Asked if these projects would be refurbishments, openings or acquisitions, or a combination of these, the spokesman replied: “It will be a combination.”

After restructuring costs, impairment of fixed assets and a loss on disposal of tangible assets, Buzzworks posted a pre-tax loss of £355,566 for the year to last April. This compared with a profit before tax of £120,679 for the prior 12 months.

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Buzzworks says in the accounts: “The group’s result for the…period has been adversely impacted by a £483,854 loss on disposal of fixed assets and a £110,116 impairment of fixed assets. Both of these have arisen as a result of the renovation of the group’s property portfolio.”

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The company noted it had invested significantly in its new and existing venues. It said that it had spent £3m across the portfolio, including the refurbishment of its flagship Elliots venue in Prestwick. Elliots has been transformed into the new Vic’s & The Vine bar and restaurant.

Buzzworks has also launched its first venue on the east coast, Scotts Bar & Restaurant in Port Edgar, South Queensferry. It has also purchased a freehold property, The Bridge Inn, in Linlithgow.

Mr Blair said: “By strategically investing in our existing venues, we are pleased to report a year-on-year rise in turnover and underlying profitability.”