REG - Revolution Bars - COVID-19 Update

Revolution BarsAnnouncement

18/03/2020 07:00

RNS Number : 5427G
  
Revolution Bars Group
  
18 March 2020
  
 

18 March 2020
Revolution Bars Group plc (LSE: RBG)
COVID-19 update
 
Revolution Bars Group plc (the "Group"), a leading UK operator of 74 premium bars, trading under the Revolution and Revolución de Cuba brands, provides the following update regarding COVID-19.
Following the announcement of the Group's Interim results on 26 February 2020, the Group has continued to perform in line with expectations with sales from like-for-like bars ("LFL") up 1.1% for the 37 weeks of the financial period to date.
However, in very recent days, the Group has experienced a decline in LFL revenue following the increasing impact of COVID-19. Following the UK Government's announcement late yesterday advising the public to stay away from bars and the actions of other Governments, it is reasonable to expect the trading environment will be very challenging for the foreseeable future.  As such, the Board expects a material deterioration in trading performance for the remainder of the financial period ending 30 June 2020, however, given the continued high level of uncertainty it is not possible to quantify the precise impact at this time.
To help mitigate the impact of COVID-19 and preserve cash, the Group is taking actions to remove cost and non-critical capex from the business. These measures include:
-      Reduction in payroll costs across the business
-      Review and reduction of unprofitable trading sessions
-      Reduction in other variable costs such as entertainment and door staff
-      Suspension of rent and deferral of business rates
-      Requests to defer PAYE and VAT payments
 
The Group welcomes the Government's support for the business rates holiday for 12 months announced late yesterday, but this does not go nearly far enough and we hope that there will be further measures in the coming days to provide assistance with payroll entitlements to gain surety for our employees, amongst other things.
 
The Group's net debt position as at the end of week 37 (last week) was £10.5m in line with the Board's expectations. The Board continues to monitor the Group's funding requirements closely and is proactively exploring all the options available.
As demonstrated in its recent Interim results the Group delivered positive momentum driven by both its strong brands: Revolution, and Revolución de Cuba.
The Board will update when appropriate.
Rob Pitcher, CEO, comments:
"At this difficult time, we are doing all we can to protect our business and our employees from the COVID-19 virus and any financial hardship its effects may have. We would welcome further Government support"
Whilst we face a very challenging period in the current financial year, we are determined to make the right choices for the Group, employees, shareholders and all other stakeholders."
 



Revolution Bars Group plc


Tel: 0161 330 3876




Rob Pitcher, CEO
Mike Foster, CFO
 
 


 




Peel Hunt LLP, Joint Broker


Tel: 020 7418 8900




George Sellar
Andrew Clark
 
 


 




FinnCap, Joint Broker


Tel: 020 7220 0500




Matt Goode / Simon Hicks (Corporate Finance)
Tim Redfern / Richard Chambers (ECM)
 
 


 




Instinctif (Financial PR)


Tel: 07831 379122




Matt Smallwood
Jack Devoy


 




 


 



 This announcement contains inside information within the meaning of the Market Abuse Regulation. The person responsible for arranging release of this announcement on behalf of Revolution Bars Group plc is Mike Foster, Chief Financial Officer.
 


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