Revolution buoyed by new bar openings
Revolution Bars has flagged strong trading at new openings, with refurbished outlets delivering “healthy returns” despite swinging to a loss in the first half.
The group, which last year was the subject of a takeover tussle between rivals Deltic and Stonegate, booked a £4 million loss for the 26 weeks to 30 December, against a £5m profit a year earlier.
It was hit by £9.6m in exceptional costs, which included provisions for onerous lease costs, asset impairment charges and costs linked to changing its chief executive. However, revenues lifted 11 per cent to £73.8m, with like-for-like sales edging up 0.4 per cent.
Revolution, which owns more than 60 Revolution and Revolucion de Cuba high street bars, opened four venues during its first half, in Inverness, Belfast, Putney and Solihull.
Executive chairman Keith Edelman told investors: “I am delighted with our sales performance in the second quarter and over the Christmas period, which shows the clear underlying strength of our business and continues to demonstrate the appeal and potential of our brands.
“New openings are performing particularly strongly, and site refurbishments are delivering healthy returns, meaning the group can pursue its strategy of profitable growth and drive like-for-like sales in its core estate.”
Analysts at Numis Securities noted: “Four new sites opened in H1 and the group is on target to open six this year. All are trading ahead of target. We see the rollout of new sites as the key value driver.”