15th Jan 2020 08:33
(Alliance News) - Revolution Bars Group PLC on Wednesday reported a seventh successive year of record Christmas sales, and added it expects a rise in first half revenue.
Elsewhere, the UK bar operator said it has agreed a deal with real estate landlords to surrender its lease on five struggling sites, and have rent reductions at four other units.
Its "record" trading in the four weeks to December 31 saw like-for-like sales rise 4.0% on last year. Weekly sales per site during the period averaged GBP65,000, Revolution said.
And for the first half, the period to December 28, revenue was up 3.4% to GBP81.2 million from GBP78.5 million last year, Revolution said. Like-for-like sales were 1.2% higher.
Chief Executive Rob Pitcher said: "I am delighted with our Christmas trading and the steady improvement in our like-for-like sales performance over the first half is further evidence that our key initiatives are driving both operational and financial improvement.
"Considerable strides have been made in rebuilding customer loyalty and driving sales and profit from the existing estate, creating a stronger business with significant cash generation."
First-half adjusted earnings before interest, tax, depreciation and amortisation, pre-IFRS16, are expected to rise in line with market expectations. The adjusted measure also excludes bar opening-costs and share-based payments.
IFRS 16 is an accounting rule governing the financial treatment of leases.
On leases, Revolution said that following the first half, it exchanged contracts with London-based landlord Aprirose Real Estate Investment to give up its lease on five loss making bars. Four other bars will see rents reduced.
"The net effect of these transactions is to improve the group's on-going full year operational cash flows by roughly GBP1.2 million per annum," Revolution said.
This followed the first half where bars in Liverpool, Welsh city Swansea, and Macclesfield, in Cheshire, were closed.
Shares in the company were 6.9% higher at 90.36 pence each in early trade on Wednesday morning in London.
By Eric Cunha; [email protected]
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