Revolution revenues grow as takeover talks continue

03/10/2017 - 10:24
Revolution Bars Group plc, trading under the Revolution and Revolución de Cuba brands, reported revenue and like-for-like sales growth in its full year results as discussion of a potential takeover continued.

The group’s preliminary results for the 52 weeks ended 1 July 2017 showed revenue of £130.5 million, up from £119.5 million the previous year. Like-for-like sales were up 1.5%.

Six new sites opened during the period, all outside of London and all of which the group says are on track to deliver excellent returns on capital based on trading levels achieved to date.

Adjusted EBITDA grew by over £2 million, driven by “solid underlying performance” from like-for-like venues, full year mature contributions from five venues opened in the comparative period, and part-year contributions from six openings in the current period.

Operating profit was down from £5.3 million in 2016 to £3.7 million, as was adjusted operating profit which fell from £9.5 million to £7.56 million.

September trading was described by the group as “disappointing” thanks to this year’s wet weather compared to warmer temperatures in September 2016.

Stonegate Pub Company Limited made an approach to acquire the group last month and were joined by Deltic Group a week later.

Revolution says its shareholders will vote on Stonegate’s offer on 17 October with Deltic yet to make a formal offer, having outlined a merger proposal rejected by the Revolution board due to significant concerns regarding value and deliverability.

“Deltic must either announce a firm intention to make an offer for the Group under Rule 2.7 of the City Code on Takeovers and Mergers, or announce that it does not intend to make an offer, by 5.00 pm on 10 October 2017,” said a Revolution spokesperson.

Revolution has a trading portfolio of over 60 bars in the UK, located predominantly in town or city high streets.

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