Revolution Bars falls to £22.2m loss amid challenging trading
Despite improved revenues, the group faced various external challenges, particularly impacting bars, all combining to deliver a 8.7% decline in LFL sales for the full year
Revolution Bars Group, a leading UK operator of 67 premium bars and 22 gastro pubs, has reported a £22.2m loss before tax in FY23, despite revenues hitting £152.6m, as it faced “very challenging times”.
Peach Pubs, which was acquired by the business in October 2022, delivered 14.1% LFL sales in FY23, demonstrating that the acquisition “has already delivered much needed diversification of sales and guests”.
However, the group faced various external challenges, particularly impacting bars, all combining to deliver a 8.7% decline in LFL sales for the full year.
In addition, EBITDA amounted to £17m, down from £19.4 in FY22, and the company reported an operating loss of £15.2m.
The group’s other trading brand Revolución de Cuba has “performed well” particularly in the second half of the year, while the Revolution brand, which is aimed at 18 to 30-year-old customers, has been particularly impacted by the reduced footfall caused by the cost-of-living crisis.
For the year ahead so far LFL revenue has declined 5.5% compared to FY23, but the group remains confident that the continuation of Peach Pubs strong performance will help trading throughout the year.
Rob Pitcher, chief executive officer, said: “Peach Pubs has seen continued strong trading since acquisition, especially during periods of good weather. We are very excited to open our first new Peach Pub since the acquisition and see this brand as having significant expansion opportunities across the United Kingdom when we have the necessary available funds.
“The group now offers a well-rounded, diversified offering through our bars and pubs to navigate the ongoing challenges our guests face with the cost-of-living crisis. The macroeconomic challenges facing the industry impact on both our guests’ available spending as well as profitability of the business. This is a key area of focus for our management teams, and we are pleased to see the impact of our sales-driving initiatives coming to fruition, alongside active cost management.”
Pitcher continued: “I am immensely proud of the resilience and positive attitude our colleagues continue to show and look forward to entering our busiest trading period of the year, which we hope to be the first normal Christmas since 2019.”
