Revolution Bars Group has announced total sales of £76m for the 26 weeks ended 31 December 2022 (H1 FY23), with a loss before tax of £0.1m.
The Revolution, Revolucion de Cuba, and Peach Pubs operator further announced operating profit at £3.1m, while adjusted EBITDA was £9.8m.
In comparison, sales were £74.1m and profit before tax was £4.3m in H1 FY22.
H2 FY23 group lfl sales have shown an improvement of 2.6 ppts on the first half of the year, with lfl sales of (6.8)% to date and all brands performing in line with expectations while Peach has continued its strong lfl performance.
The group faced “continuous and varied external headwinds impacting profitability,” including transport strikes, a downturn in consumer confidence, record hot weather, and cost inflation.
However, it expects the trading environment to improve, as energy prices decrease and consumer confidence picks back up.
Revolution Bars also stated the brand is resonating with customers, citing record-breaking like-for-like (lfl) pre-booked party revenue over the festive period, refurbishments performing well, and new bars performing in line with expectations.
The acquisition of Peach Pubs during the period has served to diversify earnings away from a late-night and city-centre focus, with “synergies on track and additional growth opportunities being identified.”
The group had net debt of £23.1m as at 6 March 2023, made up of a £27m drawn down revolving credit facility and £3.9m cash, with £6.9m headroom available on the facilities. Covenants have been reset to reflect current trading and market conditions.
CEO Rob Pitcher said: “We have faced well documented macroeconomic challenges which impacted profitability in the half year. 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.”
