Revolution Bars Group plans to reopen 20 of its bars on 12 April, when hospitality is able to trade outside, and the entire 66-strong estate on 17 May.
Although the April date is “later than we had hoped”, the plan provides clarity to fully prepare and manage the expectations of staff.
In a statement to the London Stock Exchange, the group welcomed the Chancellor’s support measures in the Budget, which will allow the company and wider hospitality industry to “regain a financial position from which it can again develop and thrive”.
In December 2020, the group estimated that if it were unable to trade due to enforced closure, and taking into account the various governmental support schemes and agreements with landlords, cash burn would be approximately £0.4m-£0.45m per week.
At that time, the Group had £17.6m of liquidity headroom. At 3 March 2021, the group had net debt of £27.1m with available liquidity resources of £9.8m, as a result of the weekly cash burn, and following the cash outflows related to the previously announced CVA and lease surrenders, and the working capital outflow associated with the full closure of the estate on 30 December 2020.
The group said it has “more than sufficient liquidity resources” available to take it well through 17 May 2021, the date that its estate will be able to commence trading indoors in line with the phased release of current lockdown measures.
This assumes no tightening of Government restrictions over that period. Previous experience has demonstrated that when the company is able to trade without restriction, targeted for 21 June 2021 in the reopening roadmap, it is highly cash generative and profitable.
The group said it anticipates that following easing of restrictions there will be significant pent-up demand and the Group will enjoy a rapid rebound in trading.
Rob Pitcher, CEO of Revolution Bars Group said: “With the encouraging progress of the vaccination programme, clarity in the timetable to reopening, and the additional financial support measures announced by the Chancellor, the light at the end of the tunnel is getting brighter. Notwithstanding that good news, our industry remains on the critical list and the continued support announced by the Government is required to ensure that we can be in a position to return to growth and be a driver of national job creation once again particularly for young people who are the lifeblood of our industry and who have been severely impacted over the last year. We are excited at the prospect of welcoming back our colleagues and guests and providing fun and memorable experiences for them as lockdown restrictions ease.”
Revolution anticipates ‘rapid rebound’
Revolution Bars Group plans to reopen 20 of its bars on 12 April, when hospitality is able to trade outside, and the entire 66-strong estate on 17 May. Although the April date is “later than we had hoped”, the plan provides clarity to fully prepare. The group anticipates that following easing of restrictions there will be significant pent-up demand and the brand will enjoy a rapid rebound in trading.