Revolution remains ‘optimistic’ despite H1 operating loss

Revolution Bars Group executive chairman, Keith Edelman
02/03/2018 - 10:24
Revolution Bars Group today (2 March) published its first half-year financial statement for the 26 weeks to 30 December 2017, revealing an operating loss of £3.7 million.

While total sales were up 10.6% at £73.8 million, the group, which operates 72 bars across its Revolution and Revolución de Cuba brands, stressed that the reporting period comparison was “distorted” by the absence of New Year’s Eve – “one of its most significant trading days in the current period.”

By extending the reporting period by one week to include NYE, total group sales were in fact up 12.3% at £73.8m, while like-for-like sales were up 1.9% compared to +0.4% when discounting NYE.

It still reported an operating loss of £3.7m but said it provides “a more meaningful comparable presentation of its first half underlying performance.”

Other financial highlights include:

 Excluding New Year’s Eve trading:

  • Sales of £73.8m (FY17: £66.7m), up 10.6% 

  • Like-for-like sales** growth for 26 weeks to 30 December up 0.4% 

  • Adjusted EBITDA £8.9m (FY17 Restated*: £8.7m) 


Including 


  • Sales of £73.8m, up 12.3% 

  • Like-for-like sales growth for 27 weeks to 6 January 2018 up 1.9% 

  • Adjusted EBITDA £8.9m (FY17 Restated*£8.2m), up 8.5% 


Although it acknowledges “recent sales trends have been below the norm,” Revolution said “there is reason for optimism,” with executive chairman Keith Edelman adding: “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.”

Having also opened four new sites during the 26-week period - a Revolución de Cuba in Belfast and three Revolution bars in Solihull, Inverness and Putney – Edelman continued: “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.”

Looking ahead, the Board said it is “confident in the strength of the Group’s brands and its ability to operate and grow, particularly given the scale and strength of its pipeline of new venues” – including a Revolución de Cuba in Birmingham towards the end of the month (March) and Newcastle-upon-Tyne before the end of the financial year.

It also said: “Talent will be further enhanced when Rob Pitcher, our new chief executive, joins the business, bringing significant sector experience and insight and a personal determination to drive the next phase of growth.

Edelman concluded: “The business is well set for the arrival of Rob Pitcher in the coming months.”

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