Revolution in profit warning as weather takes its toll

REVOLUTION Bars shares have slumped by more than seven per cent after the firm issued a profit warning, saying it had been hit by the unusual weather.

The bars business said its sales fell by 1.7% on a like-forlike basis in the second half to June 9, and that earnings before interest, tax, depreciation and amortisation would be around £15 million – the same as last year.

In a statement, the company said: “The adverse, wintry weather conditions in March combined with the unusually hot weather throughout May and early June, has curtailed late-night weekend trading.”

It also cited disruption from the “unsettling effect” of a takeover battle last year, and a long period during which it did not have a chief executive.

Mark Mcquater resigned in October 2017 after a proposed £102m takeover bid for the company broke down.

The group’s executive chairman, Keith Edelman, has been leading the business since Mr Mcquater’s departure. New chief executive Rob Pitcher will join the business on June 25.

Revolution’s board said it was “confident in the future prospects of the business”.

The firm is pinning its hopes on opening new bars, a marketing spend review, and the roll-out of new software for managing staff schedules.

In morning trading on Thursday, shares were down 11.6p at 145p.