Revolution Bars warns on profits, shares tumble

Revolution Bars warned on Tuesday that full-year underlying earnings were set to be at the bottom end of the range of market expectations, with trading in the run-up to Christmas hit by train strikes and bar closures to keep energy costs down.

Consensus expectations were for full-year earnings before interest, tax, depreciation and amortisation of between £6.7m and £10.5m.

The company said customers’ confidence in the reliability of train services and their ability to travel has been severely impacted over recent months, with the threat of and ultimately significant industrial action through strikes in the week commencing 11 December, which is traditionally its busiest week of the year.

"This taken together with the ramifications of the cost-of-living crisis has meant that our walk-in revenue was lower than in previous years, with a consequential impact on group sales," it said.

Group like-for-like sales for the Christmas trading period were down 9% versus the same period in 2019, which was the last festive period not affected by the pandemic.

"As a consequence of the impact on our key Christmas trading period, the board has reassessed its expectations of the group's FY23 outturn assuming that industrial action subsides, energy prices hold at their current levels and taking into account various mitigating actions being undertaken.

"These mitigating actions include closing a number of the Revolution and Revolucion de Cuba sites on Mondays and Tuesdays in January and early February to manage our energy usage, amongst additional benefits to our teams."

At 1105 GMT, the shares were down 28% at 5.29p.