TIDMRBG
RNS Number : 6881A
Revolution Bars Group
24 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")
H1 update
Revolution Bars Group plc, a leading operator of 58 premium bars
and 22 beautiful gastro pubs, trading mainly under the Revolution,
Revolución de Cuba and Peach Pubs brands, today provides further
detail on Christmas and H1 trading and outturn for FY24.
H1 and festive trading
As previously reported, Group like-for-like sales for the four
weeks from 4 to 31 December were +9.0%, the best festive period
since 2019. Group like-for-like sales for H1, including New Year's
Eve, continued to demonstrate an improving trend at -2.8% for the
half.
Peach
Following opening our 22(nd) Peach pub in November 2023, the
brand delivered its best ever Christmas period Christmas trading
period with three consecutive record weeks during December,
achieving weekly sales of over GBP1m for the first time. LFLs vs
FY23 continued to be strong over the Festive period driven by good
Christmas party bookings. Integration of the Peach acquisition
continues to go well with synergies of GBP1.5m on track to be fully
delivered by FY25.
Revolución de Cuba
As Corporate guests returned to Christmas parties in full this
year, for the first time in four years, pre-booked party revenue
grew significantly by 26% versus 2022 and our refreshed brand
proposition delighted party goers who recorded excellent guest
feedback scores.
As a result, significant double digit LFL growth was achieved
during the 4 weeks to 31 December, with the brand outperforming the
Bars Market again which it has done for the each of the past 13
months.
Founders and Co.
Founders and Co., our artisanal market hall and bar in Swansea
continues to go from strength to strength delivering double digit
LFL growth every month in FY24 to date as it continues to build on
its status as a community hub for likeminded guests.
This concept is now well positioned for growth and is an
exciting prospect for the Group.
Revolution
Christmas delivered a welcome boost for the Revolution brand and
we saw our corporate guests returning to enjoy themselves and help
to deliver positive LFL growth with solid pre-booked sales growth
for the festive season of 11%. Nonetheless, it remains clear that
the younger guest to which this brand appeals continues to
experience, disproportionately, the cost of living crisis
pressurising their discretionary income, causing the Revolution
brand to underperform.
FY 24 Outturn
Despite strong Christmas trading as reported above, and the
improving LFL trend throughout H1, January trade has started softly
as guests recover from the expense of Christmas. With inflation
still high, we cannot assume that the 14.8% increase in the NMW for
18 to 20 year olds plus the 9.8% increase for those over 21 from
April (total blended 10.8%) flows through to increased
discretionary spend for our Revolution guests in particular. It is
however a material increase in cost in each of our businesses.
This, together with the recently announced continuation of Aslef
train strikes, means that the Board has had to reconsider previous
assumptions of LFL growth in the second half of the financial year.
Whilst the business continues to manage costs tightly, the
significantly above inflation increases in both business rates and
payroll costs set by the Government are a significant additional
burden and barrier to growth. As a result, the Board now expects
IAS 17 EBITDA to be cGBP3-3.5m.
Net debt at 23 January 2024 is GBP20.3m, well within our
facility with NatWest, however we will significantly reduce our
capex expenditure to reflect this lower EBITDA with all
refurbishments deferred until we see trading improve.
The Board expects to announce interim results for the 26 weeks
ending 30 December at the end of March 2024.
Rob Pitcher, CEO of Revolution Bars Group, said:
"The 2023 festive trading period is our best for four years. I
have been delighted with the strong growth in Peach, Revolución de
Cuba and Founders over the festive period. It was pleasing to see
our Revolution guests experience their first uninterrupted
Christmas since 2019, driving growth for the brand.
Revolution's younger guests are however still feeling the
disproportionate effect of the cost-of-living crisis. Looking
forward, both business rates and national living wage will increase
materially in April 2024 and therefore we have had to take the view
that, with inflation remaining high, the recovery for the
Revolution business, our largest brand, will take longer than we
had previously forecast.
I'd like to thank our teams for all their hard work in making
the Christmas period such a success and look forward to the point
when the cost of living abates sufficiently for our Revolution
guests' disposable income in particular to improve. "
24 January 2024
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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END
TSTFFFIVLRIVFIS
(END) Dow Jones Newswires
January 24, 2024 02:00 ET (07:00 GMT)
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