Takeover target Revolution spins slower

Takeover target Revolution Bars has revealed annual profits have fallen nearly a third and has cautioned over cooling autumn sales.

Thenightclubandbargroup, whose outlets include Edinburgh, Glasgow and Aberdeen, saw pre-tax profits fall 29 per cent to £3.6 million for the 12 months to 1 July as sales growth lost momentum.

Revolution, which owns more than 60 Revolution and Revolucion de Cuba high street bars, said like-for-like sales rose 1.5 per cent in the year, but that first-quarter growth in its new financial year had eased to 0.3 per cent.

The group said yesterday: “July and August returned to a more normal trading pattern following the terrorist incident in Manchester in May, whilst September trading for the sector as whole has been disappointing, largely due to this year’s very wet and cool weather compared to record temperatures in September last year.”

Revolution issued a profit warning in May, which sent shares tumbling and sparked off takeover interest in the group.

Slug And Lettuce pub chain owner Stonegate said in August it had struck an agreement to acquire the company for £101.5 million, but shortly after nightclub owner Deltic Group made an approach.

Revolution rejected Deltic, citing “significant concerns regarding both value and deliverability”.

Deltic is still weighing whether to make a cash offer for Revolution to rival Stonegate’s bid of 203p a share, and faces a City Takeover Panel deadline of 5pm on 10 October. 0 Mark Mcquater, Revolution chief executive