Shares of Manchester-based Revolution Bars Group plc fell about 6% after it said it made an operating loss of £3.7 million for the 26 weeks ended December 30, 2017, despite sales rising 10.6% £73.8 million.
The operating loss was impacted by £9.6 million of exceptional costs.
“The reporting period comparison was distorted by the absence of New Year’s Eve, one of the most significant trading days in the current period, whereas it was the last day of the comparative period,” said Revolution Bars Group.
“By extending the reporting period by one week (27 weeks) to include New Year’s Eve increases like-for-like sales growth to 1.9%, a more meaningful comparable presentation of the group’s first half underlying performance can be made.
“The incremental sales and profit benefit from New Year’s Eve on 31 December 2016 was £1.0m and £0.5m respectively.”
Currently, the group trades from 58 Revolution and 14 Revolución de Cuba bar venues.
“With a further Revolución de Cuba opening towards the end of March 2018 in Birmingham and another Revolución de Cuba expected to open in Newcastle-upon-Tyne just before the end of the financial year, our opening programme is on track to meet the planned six new sites in the financial year, taking the estate footprint to 74 venues,” said Revolution Bars.
“A further three new sites are expected to open early in the new financial year with the pipeline for further sites remaining strong.”
Keith Edelman, executive chairman, said: “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.
“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.
“The business is well set for the arrival of (new CEO) Rob Pitcher in the coming months.”