Revolution Bars Group has issued a profit warning after both cold and hot weather knocked trading.
In a trading statement for the 52 week period ending 30 June 2018, the group said adjusted earnings before interest, tax, depreciation and amortisation are expected to be below market expectations and in line with last year’s £15.1m.
This is due to “challenging and volatile trading conditions” including the adverse winter conditions in March combined with the unusually hot weather in May and early June curtailing typical late night weekend trading.
While the group believes the weather was the most significant factor, disruption caused by operational management change prompted by the unsettling effect of last year’s takeover activity and the prolonged absence of a chief executive has also played its part.
As a result, like-for-like sales were down 1.7% falling short of expectations, despite total sales in the second half to 9 June up 7.3%.
Both of the group’s 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 were up by 9.1% and like-for-like sales 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.
The group says it “remains confident in the future prospects of the business” and has six new sites planned to open for its next financial year including four large bars scheduled to open in the next four months.
Revolution’s new chief executive, Rob Pitcher, joins the business on 25 June 2018.