Bars group enjoys continued progress, with new openings in the pipeline
Manchester-based bars business Revolution Bars Group reported a strong performance in its outlets, particularly its refurbished bars, and is on course to deliver adjusted EBITDA ahead of market expectations following the Jubilee Bank Holiday celebrations.
Current market expectations for group adjusted EBITDA, after rental charges, stands at £10m.
In a trading update for the year to date, ahead of the group’s July 2, year end, the group, which operates 67 bars mainly under the Revolution and Revolucion de Cuba brands, said that, while not being immune to the widely reported inflationary headwinds in the UK, it continues to manage and control costs tightly wherever possible.
It said its refurbishment programme has continued at pace and it has, so far, completed 16 refurbishments in financial year 2022, 14 in Revolution bars and two in Revolucion de Cuba bars.
The group expects to complete a further three refurbishments in the current financial year, taking it to its planned target of 19 refurbishments, with a further 18 planned in the next financial year.
Further to the strong trading the group has enjoyed so far, it revealed it has agreed terms on two new leasehold bars in Exeter and in Preston, which are the group’s first new sites since 2018, before the coronavirus pandemic decimated the leisure industry. Both new bars will trade under the Revolution brand and are expected to open this month.
The group’s two new brands, Playhouse and Founders & Co, have proved to be exciting additions, which the group said bring additional optionality within its estate. It said: “Looking forward, we have an exciting pipeline of future new sites and we expect to open a further six bars in FY23.”
Chief executive, Rob Pitcher, said: “Revolution Bars Group is in great shape and it’s great to be back doing what we do brilliantly.
“The business is well funded and the investment we have made in our refurbishment programme is delivering positive results and delighting our guests.
“This, together with encouraging trading, underpins our confidence in our expansion plans with two new bars due to open later this month and an excellent pipeline of new sites in place.
“Our success in delivering our vision and strategy is testament to the whole team’s hard work and their ability to create fun and memorable experiences for our guests.”
The group intends to publish its annual results for the financial year ended July 2, 2022, on October 18.
