Revolution Bars Group Trading Update (3383R)
14 June 2018 - 4:00PM
UK Regulatory
TIDMRBG
RNS Number : 3383R
Revolution Bars Group
14 June 2018
This announcement contains inside information
Revolution Bars Group PLC ("Revolution" or the "Group" or the
"Company")
TRADING UPDATE
Headlines
-- The Company has experienced challenging and volatile trading conditions.
-- Total sales for the Group in the second half up to 9 June
2018 are up by 7.3%. However, like-for-like sales are down 1.7%.
Adjusted EBITDA is now expected to be below market expectations and
in line with last year.
-- New bars opening programme delivered to schedule and is
performing in line with expectations.
-- The Board remains confident in the future prospects of the
Group as a result of the progress of management initiatives
currently underway.
-- New CEO, Rob Pitcher, joins the business on 25 June 2018.
Detail on Trading
Revolution Bars Group plc today provides an update on the
performance of the Group for the 52 week period ending 30 June
2018. In recent weeks the Group has experienced challenging and
volatile trading conditions and sales have fallen short of
expectations. Consequently, full year underlying profit
performance, measured by Adjusted EBITDA (excluding pre-opening
costs), is anticipated to be in line with last year's result
(GBP15.1m).
The adverse, wintery weather conditions in March combined with
the unusually hot weather throughout May and early June, has
curtailed typical late-night week-end trading. The sales
performance in the last six weeks at sites with significant outside
trading areas has performed well relative to last year.
Total sales for the Group in the second half to 9 June 2018 are
up by 7.3%, however, like-for-like sales are down 1.7%. Both of our
brands have seen similar changes in their sales trends over this
period, although Revolucion de Cuba like-for-like sales remain in
growth. For the 49 weeks to 9 June 2018, total sales are up by 9.1%
and like-for-like sales are down by 0.5%. Wet sales have performed
better than food, particularly in the Revolution estate where
little food development and innovation was undertaken in 2017. This
development is now underway for delivery in Q1 next year.
Whilst the Board believes that the weather has been the most
significant factor impacting the sales trend, disruption caused by
operational management change prompted by the unsettling effect of
last year's takeover activity and the prolonged absence of a CEO
has also played its part.
The Board remains confident in the future prospects of the
business given the following initiatives:
1. The new bars opening programme for the current financial year
has been delivered to schedule. Those 5 bars are performing to
expectations;
2. As planned, we have six new sites for our next financial year
including four large bars scheduled to open in the next four
months;
3. Following a full review, we anticipate significantly
improving the effectiveness of our marketing expenditure;
4. The roll-out of labour scheduling software across all venues
has been completed in recent weeks and is starting to deliver real
operational improvements;
5. Simon Dobson, the Group's new Food director, joined the
business towards the end of January to drive a step change in Food
sales and profitability;
6. Pre-booked revenue continues to grow and it is anticipated
that that further strong growth in this important income stream
will be achieved.
The Group's new Chief Executive Officer, Rob Pitcher, joins the
business on 25 June 2018.
14 June 2018
Enquiries:
Revolution Bars Group +44 (0) 161 330 3876
Keith Edelman, Executive Chairman
Mike Foster, Chief Financial
Officer
Instinctif Partners
Matthew Smallwood
Tim Linacre
Tom Berger +44 (0) 20 7457 2020
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END
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