‘Huge emphasis’ on live music as Deltic eyes IPO
The Deltic Group, Britain’s biggest nightclub operator, has confirmed to IQ that it is seeking a buyer for the business.
A spokeswoman for the Milton Keynes-headquartered company said it is “considering its options, whether that be an IPO [initial public offering] or a private sale”.
Deltic was formed from the ashes of Luminar in 2011 and operates close to 60 clubs across the country. Its brands include Chicago’s, Prizm, Oceana, Cameo and Bar & Beyond, as well as a number of unique venues.
Despite an overall decrease in the number of Britons attending nightclubs and mass closures across the country – the number of clubs in the UK almost halved from 3,144 in 2005 to 1,733 in 2015, reports The Telegraph, with local government bureaucracy, the smoking ban, the effects of the financial crisis and a fall in alcohol consumption all sharing part of the blame – Deltic posted encouraging annual results for the year spanning February 2015 to February 2016, with earnings before interest, taxes, depreciation and amortisation (EBITDA) up 16.8% to £13.4 million.
“Live music makes up a huge part of our entertainment offering. It is something which Deltic will continue to place emphasis on”
The period saw increased investment in “music-led entertainment” such as celebrity DJs, comedy nights and its Smirnoff-sponsored Big Night Out events (pictured).
Peter Marks, CEO of the Deltic Group, says the company will continue to seek out high-profile DJs for its clubs through the sale process and beyond, telling IQ: “Live music makes up a huge part of our entertainment offering. It is something which Deltic will continue to place emphasis on as part of our mission to deliver great experiences for our customers.”
Marks recently told MCA that the company is likely to delay the IPO decision until after the upcoming EU referendum in the UK. IQ asked European live music professionals for their predictions on how the industry might look following ‘Brexit’, or Britain’s exit from the EU, in March.