Revolution Bars ends year in line with upgraded expectations

Revolution Bars said in an update on Tuesday that its results for the financial year just ended were set to be in line with its upgraded expectations.

The AIM-traded firm said full year like-for-like sales growth of 1.3% was delivered in the year ended 2 July at its 56 English bars after restrictions were fully lifted in England in July last year.

It described it as a “strong result” given the disruption caused by the Omicron variant of Covid-19, and subsequent ‘plan B’ guidance which was in place over the winter and the peak Christmas trading period.

Like-for-like sales for the full group, including Wales, Northern Ireland and Scotland, where restrictions on trade were slower to lift, were ahead 0.3% for the period after 19 July 2021.

“We have not been immune to the widely reported inflationary pressures; however, we continue to mitigate these wherever possible with a relentless focus on cost management,” the board said in its statement.

“Our industry leading sustainability agenda has allowed us to reduce our carbon footprint and mitigate, in part, the widely reported energy cost price increases.”

Revolution Bars said its energy prices remained largely fixed until spring 2023, adding that its focus on training and retention had reduced the burden of colleague turnover.

The company’s refurbishment programme was on track with 19 refurbishments completed during the year, representing 28% of its like-for-like estate, which were delivering returns in line with the board’s payback target of two years.

It said 16 of the refurbishments had been in Revolution-branded sites, and three in ‘Revolución de Cuba’ sites.

Two new Revolution-branded sites were also opened in the year, in Exeter and Preston, with the board “encouraged” by initial trading.

The firm’s two new concepts, ‘Founders & Co’ and ‘Playhouse’, were said to have initially been well-received.

Revolution said it expected to refurbish a further 18 sites in the 2023 financial year alongside six planned new site openings, with an “exciting pipeline” in place to deliver that.

Net cash as at 1 August totalled £2.6m, with the board saying it had “significant and sufficient” financial headroom to fund its future plans.

“Revolution Bars Group is in great shape - the business is well positioned with a net cash position to fund our new site and refurbishment programme,” said chief executive officer Rob Pitcher.

“It has been exciting to see the positive results of our refurbishment and expansion strategy this year and to see our young guests, who place real importance on socialising, continue to enjoy themselves in our bars.”

Pitcher said the company’s vision and strategy to “delight” guests was delivering.

“The business is well positioned to continue to progress, is well funded for our new site and refurbishment programme, and we are seeing Christmas bookings building much earlier than last year.

“Our success is thanks to the whole team's hard work and their ability to create fun and memorable experiences for our guests.”

Revolution Bars said it would publish its preliminary results for the financial year ended 2 July on 18 October.

At 1333 BST, shares in Revolution Bars Group were up 1.2% at 14.8p.

Reporting by Josh White at Sharecast.com.