Revolution Bars Group has reported total sales of £82.3 in its interim results for the 26 weeks ended 30 December 2023 (H1 FY24).
The operator of 58 bars and 22 gastropubs also reported year-on-year sales growth of 8.3% and profit before tax of £3.1m, after an exceptional gain relating to the exit from certain leasehold properties. The group announced it would exit eight loss-making sites earlier this year to reduce future losses.
The Revolucion de Cuba and Peach Pubs operator has further requested that trading in its ordinary shares on the AIM be restored with effect from 7:30 a.m. today (11 April). Shares were suspended on 2 April when the company was unable to report its interim results by 30 March.
Group like-for-like (lfl) sales for the four weeks from 4 to 31 December 2023 saw a 9% uplift, the best festive period since 2019. Lfl sales for H1 FY24 demonstrated an improving trend at -2.8%.
The group opened its 22nd Peach pub in November 2023, following which the brand delivered its best ever Christmas trading period and continues to trade well.
Revolucion de Cuba’s refreshed brand proposition has resulted in ‘excellent’ guest feedback scores as corporate guests returned to Christmas parties in full.
Revolution continues to experience challenged trading, attributed to the disproportionate impact of the cost of living crisis on its younger customer base.
Founders & Co continues to go from “strength to strength”, delivering double-digit lfl growth every month in H1 FY24. The concept is well positioned for growth and an “exciting prospect” for the group.
Following softer post-Christmas trade, coupled with significant cost pressures, the board has concluded it is in the group’s best interest to propose a restructuring plan.
The plan comes alongside additional measures to reshape the business, as well as the exploration of a formal sales process in parallel to deliver the best outcome for stakeholders.
Additional equity capital is to be raised from new and existing investors for a potential restructuring plan and to provide working capital for the group.
CEO Rob Pitcher said: “The first half of FY24 has seen continued challenges with the cost-of-living crisis disproportionately impacting particularly the discretionary expenditure of our young Revolution brand guests. Revolución de Cuba and Peach have been less impacted as the guest profile is more affluent, and both brands enjoyed very strong festive trading, and Revolución de Cuba, in particular, has shown excellent trading when compared against the wider Bars market.
“I would like to take this opportunity to thank our brilliant teams for always bringing a smile to our guests, and their continued resilience and hard work in the face of these challenging times. They have delivered another brilliant Christmas, continue to delight and thrill our guests, and I appreciate their continued professionalism.”
