Revolution Bars Group plc has announced its financial report for the 52 week period ending 30 June 2018, as it's set to welcome the new CEO, Rob Pitcher (pictured) on 25 June.
In recent weeks, the company has experienced challenging and volatile trading conditions and sales have fallen short of expectations. 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, in the second half to 9 June 2018, are up by 7.3%, however, like-for-like sales are down 1.7%. Both of the 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.
The Board was positive about the future as the new bars opening programme for the current financial year has been delivered to schedule. Those 5 bars are performing to expectations.
Also, there are six new sites for the next financial year, including four large bars scheduled to open in the next four months;
Simon Dobson, the Group's new Food director, joined the business towards the end of January to drive a step change in Food sales and profitability;
Finally, the firm said that pre-booked revenue continues to grow and it is anticipated that that further strong growth in this important income stream will be achieved.