STEFAN King's expanding bar and nightclub empire reported record profits of GBP7.3m yesterday as the number of properties in its portfolio exceeded 100 for the first time.

The G1 Group, which now has a foothold in all Scotland's major cities, saw profits surge by 12.7per cent in the last financial year, the fifth consecutive year that both profits and sales have increased.

The results underline the strength of Scotland's nightlife economy but they do not reflect the impact of the smoking ban, which some have warned will have a negative impact on sales since being introduced in March this year.

Mr King's company, which started in Glasgow in 1990 and still has its base there, invested GBP29.4m in new properties and refurbishments last year.

It has premises in Edinburgh, Aberdeen, Dundee and Perth, many of them A-listed buildings, and is one of Scotland's biggest independent nightclub companies, with 30 premises.

The nightclub magnate was persuaded to sell the General Post Office building in George Square, Glasgow, for more than GBP11m in November last year after plans to refurbish it stalled and Steven Purcell, the council leader, expressed concern over it falling into disrepair.

He now owns a string of nightclubs in Glasgow city centre, including The Social, Belo, Arta, the Corinthian, Polo Lounge and Delmonica's and recently took over the China White nightclub in Bath Street, which he renamed Kushion, and purchased The Library bar in the ground floor of the art deco Beresford development on Sauchiehall Street.

In the city's west end, G1 owns bars including Gong, the Cul de Sac, Viper, and The Bothy, Russells, Junkyard Dog and The Ettrick and is applying for planning permission - along with several competitors - to transform a derelict railway station in the Botanic Gardens as a cafe.

It also owns venues such as Jam, the Waverley Tearoom, Tusk and The Cell in the south side.

G1 recorded a growth in sales of 12.2per cent last year, while profits grew even more steeply - the result of restructuring within the company.

Mr King said: ?We have invested heavily in systems and built a strong management team. That investment underpins our carefully targeted development plans."

The company saw its returns to shareholders increase from 22.6per cent in 2005 to 39.4per cent in 2006.

Mr King, a non-smoking teetotaller who lives on the outskirts of Glasgow, has also signalled his intent to chase the ?pink pound" in Edinburgh with a GBP3m club development which he said would ?revolutionise" the capital's gay scene, after it was approved by the council's licensing committee in June.

He already owns several bars in Tollcross: Bennetts, the Auld Toll Bar and King's Arms.

Mr King started his business career by setting up Kwik Travel, which specialised in bargain-basement package holidays but closed in 1987 after hundreds of holidaymakers demanded compensation for delayed flights.

He then opened two sandwich shops and his first nightclub, Club X, a gay venue which was followed by Cafe Latte, the Polo Lounge and the superclub Archaos, which he later sold.

His personal wealth has been estimated at GBP12m.