Macroeconomics hamper Revolution results
Revolution Bars Group plc has reported a loss before tax in its interim results.
Revolution Bars Group plc has reported a loss before tax of £100,000 in its interim results, citing transport strikes, the cost-of-living crisis, record hot weather and inflation as impactful macroeconomics.
However, the UK operator of 69 bars and 21 gastropubs believes its brands are still resonating with guests following record breaking like-for-like pre-booked party revenue over the festive period. It says its refurbished sites are performing well and its new bars are trading in line with expectations.
The group, led by CEO Rob Pitcher, had a net debt of £23.1m as at 6 March 2023, made up of £27m drawn down revolving credit facility and £3.9m cash, with £6.9m headroom available on the facilities.
Like-for-like sales during the 26 weeks to 31 December 2022 sales were at 6.8%, an improvement of 2.6% on the first half of the year.
During that time, Revolution refinanced its banking facilities, resulting in full repayment of all existing Coronavirus Large Business Interruption Loan Scheme term loans, and the previous Revolving Credit Facility (RCF) being replaced with a new £30m RCF. This was utilised for repayment of existing debts and to fund the acquisition of Peach Pubs.
“We have faced well documented macroeconomic challenges which impacted profitability in the half year," says Pitcher. "The team have done everything they can to mitigate the cost headwinds and other factors outside of our control, and I am immensely proud of our people for delivering an amazing Christmas to our corporate guests, delivering an all-time record of pre-booked sales for the group. Walk-in custom was hampered by industrial action, reduced consumer confidence and the hot summer, and we look forward to increased guest confidence in the coming months as energy prices continue to fall from their previous peak and inflation abates.
"We were delighted to announce the acquisition of Peach Pubs in October 2022, which has diversified our offering and guest base. We have continued to see pleasing performance, delivering excellent Christmas trading. We continue to develop synergies between the businesses, and identify new and exciting opportunities.
"Management continues their focus on navigating the current macroeconomic situation, developing our business, and putting in place further building blocks for future growth. The board remains confident that the business is on track to achieve market expectations for FY23, and we anticipate some sales recovery in 2024.”