Returning students and office workers boost Revolution Bars recovery
The 67-strong bar chain saw shares lift in early trading as it swung back to a profit for the past half-year.
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Your support makes all the difference.The return of students and office workers has helped Revolution Bars sales rebound in recent months despite the recent spread of the Omicron variant of coronavirus.
The 67-strong bar chain saw shares lift in early trading as it swung back to a profit for the past half-year.
The group, which also operates the Revolucion de Cuba brand of venues, said it had “positive” sales in February, following the end to Plan B restrictions in England.
Nevertheless, it highlighted “some ongoing restricted trading” in Scotland.
Revolution said consumer confidence in visiting pubs, bars and restaurants is “returning and is highest in our young guest base”.
The group added it is managing inflationary pressures and is seeking to mitigate these, having previously suggested it would increase some prices to offset higher costs.
It came as the company revealed revenues more than tripled to £74.1 million over the six months to January 1, compared with the same period last year, but remained below the same period two years earlier, before the pandemic struck.
Revolution posted a pre-tax profit of £4.3 million for the period, from a £17.7 million loss a year earlier.
Rob Pitcher, chief executive of the company, said: “We are hugely encouraged by the performance in full-year 2022 half-year 1 and are excited about the future as we all now ‘learn to live’ with Covid-19.
“We are emerging strongly following a period of severe disruption and now believe that, assuming no further variants, we can look forward to a sustained period of growth.”
Mr Pitcher called on the Government to support the hospitality sector’s recovery by holding off plans to increase food and soft drink VAT from 12.5% to 20% next month.
He also called for business rates relief measures to stay in place.
Nigel Parson, consumer analyst at FinnCap, said “growth is firmly back on the menu” as Revolution moved closer towards pre-pandemic trading levels.
“Revolution Bars Group has traded strongly when free of restrictions and current trading remains positive, refurbishments are progressing well, and the new site pipeline is building,” he added.
Revolution added that it is monitoring the conflict in Ukraine but expects the impact to be “limited”.
Shares in the business moved 6.9% higher to 21.38p in early trading.