Revolution Bars warns on earnings after trading takes a hit from both too cold and too hot weather

 
Rebecca Smith
Revolution Bars said a prolonged period without a chief executive hadn't helped
Revolution Bars said a prolonged period without a chief executive hadn't helped (Source: Getty)

Revolution Bars hasn't been toasting the sunshine - or the snow surprise in March for that matter, with the city centre bar chain saying today it had been buffeted by "challenging and volatile trading conditions" in its latest trading update.

Shares slumped on the news and were down nearly nine per cent by midday.

The company said sales had fallen short of expectations, so it has warned that adjusted earnings before interest, tax, depreciation and amortisation is now expected to come in below analyst expectations, at the same as last year's total of £15.1m.

Read more: Not quite last orders: Deltic reveals stake in Revolution Bars

Revolution said:

The adverse, wintery weather conditions in March combined with the unusually hot weather throughout May and early June, has curtailed typical late-night weekend trading.

Total sales for the group in the second half to 9 June were up by 7.3 per cent, but like-for-like sales are down 1.7 per cent. For the 49 weeks to 9 June, total sales were up by 9.1 per cent, while like-for-like sales were down by 0.5 per cent.

Looking ahead it has six new sites for the next financial year, including four large bars scheduled to open in the next four months. Revolution is also carrying out a full review to improve the effectiveness of its marketing spend.

Revolution said the weather was the most significant factor impacting sales, but added that disruption from "the unsettling effect" of last year's takeover discussion, and a lengthy period without a chief executive, had also "played its part".

New chief executive Rob Pitcher will join on the 25 June.

Last year, Revolution was involved in big back and forth with nightclub operator Deltic, with the latter pursuing a tie-up despite initially being rebuffed by Revolution. A deal was agreed instead between Revolution and Slug and Lettuce owner Stonegate Pub Company, but Deltic said Stonegate had undervalued Revolution and came back with its own all-share proposal.

Revolution had initially agreed to a £101.5m takeover offer made by Stonegate, with Revolution's board of directors saying they considered the terms of the offer "to be fair and reasonable".

But the offer was rejected by shareholders last October.

Read more: Never mind a glass – Revolution Bars snares Pitcher as new chief executive

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