Revolution Bars is on its way to being taken over by either Stonegate or Deltic despite profits slip

 
Alys Key
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Two rival bidders could both end up putting in offers for Revolution (Source: Revolution)

Pre-tax profits fell at London-listed Revolution Bars as it released results today, while investors wait to see if the company will be sold to Slug and Lettuce owner Stonegate or to nightclub operator Deltic.

The group reported a hit to pre-tax profits for the full year. Shares dropped 0.7 per cent.

Shareholders will vote on Stonegate's £100m offer on 17 October. The board has already given Stonegate preferred bidder status, and will need 75 per cent shareholder approval for the takeover.

But the takeover could be disrupted at the last minute if Deltic makes a rival cash offer by the end of the day on 10 October.

Read more: Revolution Bars battle sends shares higher as Deltic isn't backing off yet

Revolution already rejected a merger offer from Deltic due to concerns over profitability, but could still receive a rival bid if Deltic decides to put one forward at the conclusion of its due diligence proceedings.

The sale process began in May after the group guided that its profitability for the financial year was likely to be lower due to cost headwinds and the fact its new bar chain Revolucion de Cubas prompting Stonegate's approach.

Today Revolution confirmed that pre-tax profits had fallen to £3.6m from £5.1m in 2016.

Like for like sales were up 1.5 per cent, and revenue grew to £130.5m.

Back in July the group said that terrorist incidents had affected trading in London and Manchester. Today it confirmed that trading had returned to normal levels subsequently, but that its September sales had been disappointing, in line with the rest of the industry.

Read more: Revolution Bars and Stonegate Pub Company move one step closer to merger

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