- Pre-tax full-year earnings now expected to come in flat on a year ago
- Group blamed struggling sales on poor weather and management shifts
Shares in Revolution Bars Group fell by 15 per cent in early morning trading, after the company admitted it was experiencing ‘challenging and volatile’ trading conditions.
Issuing a warning over its profits, Revolution said its pre-tax earnings look set to come in at the same level they did a year ago, at around £15.1million.
The group said: ‘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.
Slipping shares: Shares in Revolution Bars Group fell by 15 per cent in early morning trading
‘The sales performance in the last six weeks at sites with significant outside trading areas has performed well relative to last year’.
At present, Revolution’s share price is down 11.9 per cent or 18.7p to 137.9p.
While claiming the weather was the ‘most significant’ factor hitting sales, disruption also emerged following ‘operational management change prompted by the unsettling effect of last year’s takeover activity and the prolonged absence of a CEO’, the group said.
In the second half up to 9 June, Revolution’s total sales increased by 7.3 per cent, but like-for-like sales fell by 1.7 per cent.
For the 49 weeks to 9 June, total sales rose by 9.1 per cent, while like-for-like sales dipped by 0.5 per cent
The group plans to open six new bars over its current financial year, with four large bars scheduled to open within the next four months.
Rob Pitcher is joining Revolution as its new chief executive on 25 June.
Pitcher has over 25 years’ experience within the hospitality sector, most recently as a member of the executive committee of Mitchells & Butlers as divisional director restaurants responsible for the Harvester, Toby Carvery and Stonehouse brands.
In the 26 weeks to 30 December, Revolution suffered a £3.7million operating loss, against a £5million profit at the same point a year ago.