Revolution Bars returns to profit

Revolution Bars Group has returned to profitability as pre-tax profits surged 107% to £2.1m for the 52 weeks ended 2 July 2022, up from a loss of £26.3m last year, following positive trading and cost management.

Sales also jumped 257.4% year-on-year from £39.4m to £140.8m amid a return to more normal trading. However, the group experienced “softer” trading in the final quarter due to reduced consumer confidence, which reduced the positive like-for-like (LFL) sales seen up to November down to 0.3%.

The announcement comes as Revolution acquired the Peach Pub Company yesterday (18 October), the operator of 21 food-led pubs, for a cash consideration of £16.5m.

Trading in Peach’s current financial period (since 3 January 2022) has seen LFL sales up over 10% compared to 2019. Revolution anticipates 12 month site EBITDA for Peach in Revolution’s current financial year to be over £5m, with central costs in the region of £3.5m on turnover over £30m.

Meanwhile, the first two periods of FY23 were “challenging” for Revolution, with footfall disrupted by train and tube strikes, heatwaves, resurgence in festivals and events, and people going abroad for their first holidays in three years. LFL sales in the first 11 weeks were -10.0%, with city bars bearing the brunt of transport strikes.

Looking ahead, the group now expects FY23 adjusted EBITDA of c.£10m, and following the acquisition of Peach, Revolution said it won’t be opening the previously announced six new sites in FY23.

Rob Pitcher, Revolution Bars Group CEO, said: “I am incredibly proud of what our people have achieved over recent years. We have made great progress with advancements of our brand offerings, our ‘Inclusion Revolution’, sustainability agenda, guest journey, and wellbeing and support of our colleagues.

“Looking forward, we are focused on navigating the current macroeconomic situation, developing our business, and putting in place further building blocks for continued growth.”