Revolution Bars shares plunge as sales fall short

Shares of Manchester-based Revolution Bars Group fell about 10% on Thursday after it warned in a trading update it has “experienced challenging and volatile trading conditions.”

Revolution Bars said total sales for the group in its second half up to June 9, 2018, are up 7.3% — but like-for-like sales are down 1.7%.

“Adjusted EBITDA is now expected to be below market expectations and in line with last year,” said Revolution Bars.

The firm’s new CEO, Rob Pitcher, will join the business on June 25.

“In recent weeks the group has experienced challenging and volatile trading conditions and sales have fallen short of expectations,” said Revolution Bars.

“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 (£15.1m).

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.”