Greater Manchester-based Revolution Bars Group plc said its sales rose 8.4% to £152.6 million in the year to July 1, 2023, “as a result of the acquisition of Peach Pubs and the associated increased sales from pubs in the last eight months of the year.”
Revolution said: “This offset the impact of the cost-of-living crisis and resulting lack of consumer confidence particularly felt by our young guest base in bars.
“The current year was significantly affected by macroeconomic factors outside of our control, with none of the last three years representing the true Christmas trading that the Group can deliver when not disrupted by external factors.”
Revolution said its statutory loss before tax for the year of £22.2 million (2022: profit before tax of £2.1 million) “is significantly impacted by non-cash exceptional impairment charges.”
It said adjusted EBITDA, its preferred KPI, removes the impact of non-cash and non-recurring elements “to show a true reflection of performance. “
“Though this measure is also significantly influenced by IFRS 16 and thus the directors believe that business progress is best measured by the directly comparable IAS 17 Alternative Performance Measures (APM) of adjusted EBITDA profit of £6.6 million (2022: profit of £10.2 million),” said the company.
“The reduction in APM adjusted EBITDA is a direct result of heightened costs and the challenging sales environment.”
Revolution CEO Rob Pitcher said: “Peach Pubs has seen continued strong trading since acquisition, especially during periods of good weather. We are very excited to open our first new Peach Pub since the acquisition and see this brand as having significant expansion opportunities across the United Kingdom when we have the necessary available funds.
“The group now offers a well-rounded, diversified offering through our bars and pubs to navigate the ongoing challenges our guests face with the cost-of-living crisis.
“The macroeconomic challenges facing the industry impact on both our guests’ available spending as well as profitability of the business.
“This is a key area of focus for our management teams, and we are pleased to see the impact of our sales-driving initiatives coming to fruition, alongside active cost management.
“With pre-booked revenues at record-highs for the upcoming festive period, we look forward to our bars and pubs hosting our fabulous corporate guests, as well as anticipating improved walk-in custom following the challenges of industrial action on the railways in recent years.
“We join UK Hospitality in calling for the crucial festive season to be protected and for an urgent resolution to the ongoing rail dispute.
“Not only do the strikes have a significant impact on sales and profitability, but most importantly they affect our colleagues’ earning potential through lost shifts and tips which the teams rely on to see them through the quieter trading months of January and February.”