Revolution Bars issues profit warning amid temporary closure plans
The group’s net debt was £18.5m as of 31 December 2022
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Bar group Revolution has announced that it will close some sites on Mondays and Tuesdays in January and early February in an attempt to save on energy bills.
The announcement came in a trading update delivered to investors in which it reduced its EBITDA guidance for the full year and estimates that it will be around £6.7m-£10.5m at the bottom of market expectation.
Despite this the company’s like-for-like sales were up 17.3% compared with 2019. Moreover, pre-booked party revenues were up 10.3% compared with 2019. However, walk-in revenue declined as a result of industrial action by train workers.
CEO Rob Pitcher said: “The first Christmas since 2019 without the shadow of Covid, saw a new company record for pre-booked party revenue allowing us to be optimistic of a strong Christmas period.
“However, the continued train strikes had a material impact on whether guests attended their office Christmas parties, how long they stayed and whether they met up with friends on a separate occasion. Given the current economic environment, the coming months are going to be challenging and uncertain, not only for us, but for many businesses. We are not immune to this.”
The group’s net debt was £18.5m as of 31 December 2022.
