Revolution Bars like-for-like sales up 1.5% driven by new openings

03 October 2017 by
Revolution Bars like-for-like sales up 1.5% driven by new openings

Revolution Bars has reported a 1.5% rise in like-for-like sales due to the launch of five venues, which contributed to a growth in adjusted EBITDA to £15.1m last year.

For the 52 weeks ended 1 July 2017, revenue increased 9% to £130.5m and profit before tax was at £3.6m. The five new openings in the prior period also achieved returns on capital of 32%.

Refurbishment projects were also undertaken at the Revolutions in Blackpool and Cardiff.

Revolution Bars predicts that "the new bars are on track to deliver excellent returns on capital".

In August, Revolution Bars Group agreed a £101m takeover offer from Stonegate pub company, which owns the Slug & Lettuce brand. Shareholders are expected to vote on the offer on 17 October.

However, Revolution Bars is also in talks with 57-strong club and bar brand Deltic, which has outlined a merger proposal. Revoluton said: "Deltic must either announce a firm intention to make an offer for the group under Rule 2.7 of the City Code on Takeovers and Mergers, or announce that it does not intend to make an offer, by 5pm on 10 October."

Fiona Cincotta, senior market analyst at City Index said: "Stonegate's takeover bid looks all the more appealing now, in light of the disappointing results recorded for the opening months of the current financial year. The downward trend in like-for-like sales growth is continuing apace, so it's hard to see a great deal of performance upside, at least in the near future.

The ball is now firmly in Deltic's court.Investors betting on a protracted bidding war face a nervous wait as Stonegate's rival suitor considers its options."

Revolution Bars Group operates more than 60 bars across the country under the brands Revolution and RevoluciÁ³n de Cuba.

It plans to open five more sites this year, following the launch of its Belfast RevoluciÁ³n de Cuba in July, which has achieved the highest sales levels of all venues opened in the last two years and has averaged £80,000 a week over the first nine weeks of trading.

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