Revolution Bars forced to issue profit warning as uncertainty over Brexit grows

SHARES in Revolution Bars collapsed yesterday after the firm warned that full-year profit will take a knock from “economic and political uncertainties”, taking a shine off rising sales over the festive period.

The group saw like-for-like sales for the 26 weeks to December 29 drop four per cent, with the first quarter declining five per cent and the second quarter down 3.1 per cent.

As a result, it now expects halfyear earnings to come in around £2 million lower than last year and annual earnings of £12 million, down from £15 million the previous year.

Shares were down over 19 per cent in morning trade at 97.5p.

However, December proved more fruitful, with Revolution recording its sixth consecutive year of festive growth, posting a 2.6 per cent rise in like-for-like sales in the four weeks to Christmas Eve.

Total revenue for the first half was up 6.4 per cent to £78.5 million.

Chief executive Rob Pitcher said “The uplift in like-for-like sales performance over the festive period gives us momentum going into the second half.

“I’m pleased with the progress being made in refreshing the Revolution brand proposition.

“However, given the uncertain economic and political outlook we are adopting a more cautious outlook on trading in the coming months.”

Over the four-week Christmas period, pre-booked party revenue was up 11.7 per cent on a like-forlike basis and average weekly sales per venue were above £60,000, with 22 venues setting new total sales records.

Christmas trading “came late”, Revolution said, with comparable sales in the last two weeks of the financial period growing 8.1 per cent.

The firm added that it aims to “revitalise” the Revolution brand after it traded below last year.