Promoter and venue operator DHP Family posted a profit of £1.57 million in the year before the pandemic, according to its latest financial results.
Revenue was £44.6m last year, down from £58.3m the previous 12 months, with operating profit just below £2m. Profits in 2018 stood at £334,400, although this was the result of a £1.4m impairment of fixed assets.
DHP runs venues such as Nottingham's Rock City and Rescue Rooms, Thekla in Bristol and The Garage and Oslo in London.
With reference to the 2019 figures, the report said: "Gross profit margins have increased as a result of strong performance across the business departments, but in particular the Nottingham venues. One of the focuses with venues during the year was to increase club night spend per head, which have increased throughout the year.
"The live business continued to pick up large scale outdoor events to bolster its levels of live gigs held around the country."
The brand position of our venues, the strength of our management team along with our wide-ranging knowledge of the industry and cash position leaves us well placed for the coming years
All but one of DHP's venues had reopened prior to the start of lockdown 2.0.
"The demand for these nights has been strong, an indication that once social distance measures are lifted, our customer base should return to pre-Covid-19 numbers," it said.
"Careful investment decisions over the prior years as well as our strong financial result have enabled us to have low levels of debt-to-equity. At the start of the Covid-19 pandemic we injected £1.6m of cash into the business via an issue of preference shares to strengthen our balance sheet for the Covid-19 period and beyond.
"The brand position of our venues, the strength of our management team along with our wide-ranging knowledge of the industry and cash position leaves us well placed for the coming years."
Last month, it was announced that DHP would receive £908,004 in the first round of the government's £1.57 billion Culture Recovery Fund.
"DHP have worked hard to utilise support from the government, its own staff and the strength of our brands to maintain the business going forward," stated the company’s strategic report, filed with Companies House. "We have restructured our management teams and head office functions to cope with the financial impact of the pandemic. We have also negotiated on extending one of the leases for our venues at better terms."
The firm closed its Borderline venue in London last year, and reinvested into the other areas of its portfolio including the £1m renovation of Thekla to maintain the boat venue for the next 50 years.
DHP promoters Daniel Ealam and Scott O'Neill defected to FKP Scorpio in September to run the touring giant's expanded UK operation.