14th Jun 2018 11:06
LONDON (Alliance News) - Shares in Revolution Bars Group PLC fell on Thursday as the company warned it expects flat profit for its soon-to-end financial year after difficult recent trading.
Revolution Bars shares were 11% lower on Thursday morning at 140.11 pence each.
Revolution Bars said sales "in recent weeks" have fallen short of expectations due to both cold weather in March and then "unusually" hot weather in May and early June, which has hit its usual late-night weekend trading.
Sales at sites with large outside areas, it said, have performed well recently.
As a result, adjusted earnings before interest, tax, depreciation, and amortisation for its year ending June 30 is expected to be at the same level as its previous year at GBP15.1 million.
The company, which runs the Revolution and Revolucion de Cuba bar brands, said sales from January to last Saturday were up 7.3% year-on-year, but are down 1.7% like-for-like. For the 49 weeks to last Saturday, sales have risen 9.1% but fallen 0.5% like-for-like.
Alongside the weather, Revolution Bars has also blamed a long period without a chief executive for its difficult trading. Former CEO Mark McQuater left last October, and new boss Rob Pitcher is due to join on June 25.
Further, the company was at the centre of a bidding war between Stonegate Pub Co Ltd and Deltic Group Ltd towards the end of 2017, which it said also unsettled things.
Revolution Bars is confident, however, as it plans to open new sites and roll-out new labour scheduling software to boost efficiency. The firm is also planning to introduce new food initiatives, with food sales not performing as well as drink sales.
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