Revolution Bars Group PLC has said earnings for the year will top expectations due to the continued strong performance across the group and a bumper jubilee bank holiday.
The owner of the Revolution and Revolucion de Cuba brands added although the group is not immune to “inflationary headwinds”, it plans to complete another 18 refurbishments in next financial year.
In a trading update today, Revolution said said it is confident of delivering adjusted EBITDA slightly ahead of the top end of market expectations, which currently stands at £10.0mln.
The company stated:
“We are pleased to report continued strong performance across the group, particularly from our refurbished bars, and continued guest enjoyment in all of our brands. While not being immune to the widely reported inflationary headwinds in the UK, we continue to manage and control costs tightly wherever possible. Following positive trading over the Jubilee bank holiday, the board is confident of delivering adjusted Ebitda after rental charges (on an IAS 17 basis) slightly ahead of the top end of market expectations, which currently stands at £10m.
Our refurbishment programme has continued at pace and we have completed 16 refurbishments in FY22, 14 in Revolution bars and two in Revolucion de Cuba bars. We expect to complete a further three refurbishments in FY22, taking us to our planned target of 19 refurbishments, with a further 18 planned in the next financial year. The refurbished bars are trading well and we are confident in achieving our two-year payback target. Further to the strong trading reported above, we are pleased to confirm we have agreed terms on two new leasehold bars in Exeter and in Preston, which are the group’s first new sites since 2018. Both new bars will trade under the Revolution brand and are expected to open in June 2022.
Our two new brands, Playhouse and Founders & Co, have proved to be exciting additions to the group therefore adding additional optionality within the estate. Looking forward, we have an exciting pipeline of future sites and we expect to open a further six bars in FY23. The group intends to publish its annual results for the financial year ended 2 July 2022 on 18 October 2022.”
Rob Pitcher, chief executive of Revolution Bars Group, said:
“Revolution Bars Group is in great shape and it’s great to be back doing what we do brilliantly. The business is well funded and the investment we have made in our refurbishment programme is delivering positive results and delighting our guests. This, together with encouraging trading, underpins our confidence in our expansion plans with two new bars due to open later this month and an excellent pipeline of new sites in place.”