A company hoping to open a lively bar at a seafront site has revealed plummeting profits.

Interactive Leisure plans a 950-capacity bar specialising in eastern European alcohol at the Aquarium Terraces in Madeira Drive, Brighton.

But the firm is looking again at its plans after admitting revenues fell by 8.5 per cent in the 13 weeks from June this year.

The Manchester-based company's share price fell by 21 per cent after the statement, from £1.21 to 96p.

The chain, which runs 37 Revolution "vodka bars" in the UK, blamed soaring summer temperatures which meant people spurned its venues in favour of outdoor drinking.

But chief executive Roy Ellis insisted the Brighton plans were still high on the agenda.

The Argus revealed in October that the firm planned to spend £1.8 million to open one of its Revolution bars at the Terraces, criticised by many residents for failing to live up to earlier promises of vibrant, upmarket restaurants and bars.

Inventive Leisure last month convinced magistrates to transfer a licence for the 14,000sqft two-level premises previously granted to night club operator Po Na Na.

Mr Ellis said: "Our announcement does not have any impact on our plans for Brighton at the moment.

"We have got a good amount of headroom in our borrowing facilities with the Bank of Scotland and Brighton is one of a number of new developments we have coming up in the next financial year.

"It would be crazy to say there are no circumstances which would not have an impact on future developments but at the moment everything is going as planned.

"I will be in a position to reassess things after the Christmas period."

Stock market analysts predicted the company's pre-tax profits would drop from an expected £4.7 million to £3.9 million this year.

Originally Liverpool night club firm Cream wanted to turn the Terraces venue into a massive "superclub" but ran into planning problems.

London firm Po Na Na took over and overturned magistrates' refusal to grant a late licence but its plans were scuppered when the firm went into administration last May.

Wednesday November 26, 2003