LONDON (ShareCast) - (Sharecast News) - Shares in The Revel Collective slumped on Tuesday, after "challenging" conditions continued to weigh heavily on the bar and pub operator.
The owner of Revolution, Revolucion de Cuba, Peach Pubs and Founders & Co, said total sales in the 26 weeks to 28 December fell to £64.2m from £82.3m year-on-year, while adjusted earnings before interest, tax, depreciation and amortisation came in at £6.1m.

Comparable interim EBITDA was £8.9m a year previously.

The firm, which rebranded from Revolution Bars last year, also said that while its festive performance had been "robust", current trading was "softer".

As at 1115 GMT, the AIM-listed stock had tumbled 21% to 0.13p. The shares have now lost 73% in the year to date.

TRC has been hit hard, first by the pandemic and then the cost of living crisis.

Hospitality veteran Luke Johnson took a 20% stake in the struggling chain last Spring and in September became non-executive chair.

The group completed its restructuring plan in September, though acknowledged that was later than planned, leading to "uncertainty" for both the Revolution and Revolucion de Cuba brands.

Rob Pitcher, chief executive, said the first half had experienced "a number of challenges, caused mainly by the impact of consumer confidence on the late night bars market, and the delay to the restructuring plan timeline", although festive trading had been "robust".

Looking to the second half, he continued: "With the impending budget measures due in April, in particular the regressive reduction in the National Insurance threshold, we are cognisant of the significant and damaging impact this will have on the group and wider industry and economy.

"Our immediate priority is both the mitigation of this cost impact and continued driving of sales, particularly in the bar brands."

Johnson added that costs within the business were under review, with a number of savings already implemented.

TRC, which trimmed its outlook in January, said it remained confident of achieving its new target for full-year adjusted EBITDA of between £2m and £4m.

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