REG - Revolution Bars - Trading and Estate Update

Revolution BarsAnnouncement

05/01/2024 07:00

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RNS Number : 7235Y  Revolution Bars Group  05 January 2024

This announcement contains inside information for the purposes of Article 7 of
the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law
by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is
disclosed in accordance with the company's obligations under Article 17 of
MAR.

 

 

Revolution Bars Group Plc

("Revolution" or the "Group")

Trading and Estate Update

Revolution Bars Group plc, a leading operator of premium bars and beautiful
gastro pubs, trading mainly under the Revolution, Revolución de Cuba and
Peach Pubs brands, today announces that it has traded positively over the
important festive season and provides an estate update.

Group like-for-like sales for the four weeks from 4 to 31 December were +9.0%,
the best festive period since 2019. Revolución de Cuba and Peach Pubs
performed well, and whilst the Revolution brand traded positively on a like
for like basis over the festive period, its guests continue to be
disproportionately impacted by the current macro-economic conditions. Group
like-for-like sales for H1, including New Year's Eve, continued to demonstrate
an improving trend, but remained negative at -2.8%. As usual, the Group
expects to announce its H1 pre-close trading update on 24 January.

Estate update

 

Whilst the Group delivered a strong festive trading period, the macroeconomic
trading environment continued to be challenging, and the prospect of the
statutory 10.8% increase in the national living wage in April 2024 increases
the challenge.

 

As part of the Groups constant process of reviewing the estate, it has been
decided that eight of the Group's least profitable bars will be closed to
reduce future site losses. The closed bars are: Revolution Bars in
Beaconsfield, Derby, Reading, St Peters Liverpool and Wilmslow, Revolución de
Cubas in Sheffield and Southampton and the Playhouse in Newcastle-Under-Lyme.
Negotiations for five of the eight bars had already begun for them to be
transferred to other operators or their leases rescinded.

 

The Group is currently working through redeployment plans to enable those team
members affected to be offered alternative employment elsewhere in the Group.
The Group will continue to operate 58 bars and 22 pubs.

 

As at 4 January 2024, net debt was £18.3m, below that reported in July 2023.

Rob Pitcher, CEO of Revolution Bars Group, said:

"We have had the best festive trading period for four years with all of our
brands recording positive like for like sales and Revolución de Cuba being
the standout performer.

However, our younger customers are still feeling the disproportionate effect
of the cost-of-living crisis and the national living wage will increase
materially in April 2024. Therefore, we have taken the difficult yet
ultimately beneficial step for the Group to close several bars which are
unprofitable.

Our teams do a terrific job in making guests welcome and giving them a great
experience and again we have demonstrated that when our customer base can
afford to do so, they are choosing to celebrate with us, and we have delivered
record levels of guest satisfaction. This should bode well for the future."

Enquiries:

 Revolution Bars Group plc

 Rob Pitcher, CEO

 Danielle Davies, CFO       Tel: 0161 330 3876

 Cavendish Capital Markets Limited (NOMAD & Broker)

 Matt Goode / Simon Hicks / Teddy Whiley (Corporate Finance)

 Tim Redfern (Corporate Broking)              Tel: 020 7220 0500

 Instinctif (Financial PR)

 Matt Smallwood / Justine Warren            Tel: 020 7457 2005/

 020 7457 2010

 

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