Cocktail bar group Revolution Bars has reported losses across the board this morning, as its profits were hammered by lockdown restrictions.
In the first half of 2020, enjoying just a few months before the pandemic forced lockdown restrictions, the group raked in £81.2m in total sales.
With lockdown restrictions only easing yesterday, the group has reported a £59.6m loss in total sales as it took home just £21.6m in the first half of 2021.
Profits took a hit, as Revolution Bars confirmed an £11.5m loss before tax in the first half of this year as the business has been unable to trade for the entirety of this year so far.
The beginning of 2021 contrasts starkly with the beginning of last year, as the group earned £3.5m in profit in the first half before lockdown shut the bars’ doors.
“Prior to the pandemic the business was outperforming our peer group…With the vaccination programme running ahead of the government’s expectation and all the Covid-19 related health data exceeding even the most optimistic of forecasts, I look forward to all restrictions on personal freedoms falling away on the 21st of June,” CEO Rob Pitcher said.
The group made use of the Coronavirus Large Business Interruption Loan Scheme (CLBILS), to help the business navigate the restrictions, which offered it a loan of £16.5m.
Earnings per share have also taken a beating, once 4.5p in the first half of 2020, the price now sits at a loss of 12p per share.
Revolution Bars opened its doors to 20 bars yesterday for the first in 2021 and is set to begin indoor trading from 17 May, with unrestricted trading to follow on 21 June.
The group is set for a boom in the coming months as it reported 11,969 customers booking in the first week it reopened the booking system for 17 May.
“Our young guest base is keen to start living again,” the group said in a statement.
“We are ready to take advantage of the reduced competition and bring to life our freshly developed new concepts to the market.”
Its decision to make use of lenders has allowed the business to stay above water long enough to enjoy the relaxation of rules, partner and restructuring expert at Begbies Traynor, Julie Palmer, said.
“It’s the same story for Revolution as it is for the rest of the industry at the moment. A year of trouble, followed by an opening of optimism and a hoped-for rush to the bar,” she continued.
“The opening this week has been hailed by the sector as the start of turning on the taps, but make no mistake, no one is seeing this as an overflowing cask. It’s a trickle at best and just the start of a very long road back to prosperity.”