Revolution Bars Group, a leading UK operator of 74 premium bars, trading under the Revolution and Revolucio´n de Cuba brands, has announced its interim results for the 26 weeks ended 28 December 2019.
Like-for-like (LFL) sales for the period improved by 1.2%. As previously reported, Q1 LFL sales were +0.7%, but improved to +1.7% in Q2 on the back of a strong performance in the lead up to Christmas. The four-week festive period3 saw LFL sales grow 4%, a seventh consecutive year of festive growth.
Revolucio´n de Cuba, which has a well-invested and differentiated offering, achieved strong LFL sales growth of 5%.
Revolution’s LFL sales were -0.4%, a much-improved trend on FY19. The recent new and refurbished Revolution bars have performed well and are proof that the Revolution brand remains relevant and liked by its customer base.
The multiple work-streams referred to in recent results announcements, many of which are targeted at driving sales, are gaining good traction, with refurbishments in particular delivering strong sales uplifts.
Adjusted EBITDA grew 10.6% from £6.9m to £7.6m, primarily through LFL sales growth, but also improvements in gross margin and tight cost control.
Shortly after the end of the reporting period the Group exchanged contracts to surrender leases at five loss-making sites at a cost of £3.6m and to re-gear four other leases in exchange for a small net rent reduction. Together with a further lease surrender completed in H1, these transactions are anticipated to deliver annualised cash benefits of £1.3m.
H2 has started well with LFL2 sales up 1.6% and the Board currently expect to deliver FY20 Adjusted EBITDA in line with market expectations.
Rob Pitcher, Chief Executive Officer, said, “We have continued to make significant progress revitalising the Revolution brand and further improving the performance of Revolucio´n de Cuba. Having stabilised the business in FY19, FY20 is about consolidation and the benefits of the many actions that we have taken are beginning to be realised.
'H2 FY20 has started encouragingly and should we continue on our current trajectory then the Board is confident the business will be well-positioned to resume site expansion in FY21.”