Shares of Greater Manchester-based Revolution Bars Group plc rose about 5% on Thursday as it published a stock exchange update saying its trading since May 17 has improved to 86% against the same period in 2019 with revenue for the year now expected to be ahead of management’s previous expectations.
“As previously announced in our re-opening update of 11 May, our bars traded extremely well within the restrictions in place from 12 April, when trading outdoors was permitted,” said Revolution.
“This strong performance has continued since 17 May when indoor trading was permitted and all of our bars have been able to trade, albeit with continuing significant restrictions such as seated table service and the wearing of masks when guests are not at table.
“Despite the restrictions in place since 17 May when seated capacity in our bars represented only 28% of total capacity, we are delighted to report that trading since that date has improved to 86% against the same period in 2019 when there were no Covid restrictions, with revenue for the year therefore expected to be ahead of management’s previous expectations.
“Following the customer reaction we have seen over the last six weeks, the board is confident that significant further pent up demand exists and therefore further strong trading is anticipated in the coming months as restrictions fall away and we fully open up the estate.
“However, we remain cautious about the coming financial year as the continuing impact of Covid-19 remains unclear and we call upon the Government to adhere to the revised Roadmap to allow clarity for all consumer facing businesses.
Taking the above into account, together with ongoing excellent cost control and continued support from third parties, we now expect that our full year performance for the year ending 3 July 2021 will be ahead of previous management expectations with an EBITDA loss pre IFRS16 adjustments of c£12.5m, with net bank debt significantly improved to c£5m following this period of trading and after our recent equity raise.”
Revolution Bars Group CEO Rob Pitcher said: “As predicted we have continued to see huge pent up demand and a rapid recovery across the nation in our bars following indoors reopening.
“We were disappointed to see that the much anticipated ‘Freedom Day’ of 21 June was delayed but the new date of 19 July, when our bars will be able to trade without restrictions, looks more certain than ever.
“Following sixteen months of government-imposed restrictions on our business our customers are very keen to take advantage of our full guest experience.
“Whilst we anticipate strong demand for our late night offering, we continue to be cautious about possible restrictions on our business during the winter period.”