Shares of Manchester-based Revolution Bars Group plc fell more than 20% on Friday after it published disappointing results for the 26 weeks to December 29, 2018, and scrapped its interim dividend.
Revenue for the period rose 6.4% to £78.5 million, but like-for-like sales declined 4%.
A slow start to the second half of its trading year means that full-year adjusted EBITDA is now expected to be in the range £11 million to £12 million.
“Focus is now on enhancing the proposition and delivering performance from the existing estate …” said Revolution Bars .
“Therefore, the new site opening programme has been halted. The board is fully committed to expanding the footprint longer term.”
On current trading, Revolution Bars chairman Keith Edelman said: “Since the turn of the calendar year, trading has continued to be challenging reflecting an ongoing market trend of stronger Christmas trading followed by a deeper sales trough in January.”
Revolution Bars Group CEO Rob Pitcher said: “While Revolución de Cuba has performed well and delivered growth in the reporting period, it is clear that the lack of investment into the Revolution proposition is impacting performance.
“Revolution has been reviewed, the issues identified, and workstreams are being implemented to restore it to growth.
“Our confidence in achieving this is underpinned by the good performance of the new Revolution venues, while the recently refurbished sites are also seeing uplifts.
“We have therefore decided to prioritise the refurbishment programme over new openings.
“We expect trading to improve as we come up against softer comparatives for the rest of the financial year.”