LONDON (ShareCast) - (Sharecast News) - Hospitality operator Revolution Bars reported a total first-half sales figure of £76m in its interim results on Tuesday, an increase from £74.1m year-on-year.
The AIM-traded company, however, said its operating profit decreased to £3.1m for the six months ended 31 December, from £6.7m, while adjusted EBITDA fell to £9.8m from £12.2m.

It reported a loss before tax of £0.1m, compared to a profit before tax of £4.3m a year earlier.

The group said it faced several external headwinds in the period, which impacted its profitability, including transport strikes, a cost-of-living crisis, record hot weather, and cost inflation.

Despite that, the firm said it saw record-breaking like-for-like pre-booked party revenue over the festive period, adding that its newest bars performed in line with expectations.

During the first-half, the group made strategic progress with the acquisition of the Peach Pub Company and its subsidiaries, in a bid to diversify its earnings away from a late-night and city-centre focus.

The company said it was on track to achieve synergies, while additional growth opportunities were being identified.

Revolution Bars had net debt of £23.1m as at 6 March, with £6.9m of headroom available on its facilities.

Covenants had meanwhile been reset to reflect current trading and market conditions.

In the second half to-date, the group's like-for-like sales were so far down 6.8%, which was an improvement of 2.6 percentage points on the first half of the year.

All brands were trading in line with expectations, with Peach continuing its strong like-for-like performance.

The board said it was confident the company would achieve an APM adjusted EBITDA in line with market expectations for the 2023 financial year.

"We have faced well documented macroeconomic challenges which impacted profitability in the half-year," said chief executive officer Rob Pitcher.

"The team have done everything they can to mitigate the cost headwinds and other factors outside of our control, and I am immensely proud of our people for delivering an amazing Christmas to our corporate guests, delivering an all-time record of pre-booked sales for the Group.

"Walk-in custom was hampered by industrial action, reduced consumer confidence and the hot summer, and we look forward to increased guest confidence in the coming months as energy prices continue to fall from their previous peak and inflation abates."

Pitcher said the company was "delighted" with the acquisition of Peach Pubs in October, diversifying its offering and guest base.

"We have continued to see pleasing performance, delivering excellent Christmas trading.

"We continue to develop synergies between the businesses, and identify new and exciting opportunities."

Revolution's management was focussed on navigating the current macroeconomic situation, developing the business, and putting in place further building blocks for future growth, Rob Pitcher explained.

"The board remains confident that the business is on track to achieve market expectations for 2023, and we anticipate some sales recovery in 2024."

At 0910 GMT, shares in Revolution Bars Group were down 10.11% at 8p.

Reporting by Josh White for Sharecast.com.

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