Revolution Bars Group Trading update (8011Z)
15 Gennaio 2020 - 8:00AM
UK Regulatory
TIDMRBG
RNS Number : 8011Z
Revolution Bars Group
15 January 2020
Revolution Bars Group plc
Trading update
Record Christmas trading
Revolution Bars Group plc ("the Group"), the leading operator of
premium bars trading across the UK under the Revolution and
Revolucion de Cuba brands, is today providing a trading update for
the 26 weeks ended 28 December 2019 ("H1 FY20") and also for the
important Christmas trading period through to and including New
Year's Eve.
Christmas trading: 4 weeks to 31 December 2019
For the seventh consecutive year, the Group achieved record
sales over the festive period. Like-for-like* sales in the
important four week trading period leading up to and including New
Year's Eve were 4.0% higher than last year. During this four-week
period, weekly sales per venue averaged over GBP65,000.
26 weeks ended 28 December 2019
Total revenue for the 26 weeks ended 28 December 2019 was
GBP81.2m (H1 FY19: GBP78.5m), an increase of +3.4%. Consistent with
the Board's strategy to focus capex and management resources on the
existing estate, there were no new openings in the period under
review. Three under-performing Revolution bars were closed in the
period at Swansea, Wood Street in Liverpool, and Macclesfield. The
Macclesfield lease has been surrendered. Sales growth in the period
was driven primarily by the annualisation of the five venues opened
during H1 FY19.
Like-for-like* sales for the 26 weeks ended 28 December 2019
were +1.2% higher representing a further improvement on the 0.7%
increase reported after 13 weeks. Sales trends in October and
November broadly followed those experienced in the first quarter
and, as anticipated due to strong growth in pre-booked party
income, stepped up in December. Revolucion de Cuba achieved strong
like-for-like* sales growth throughout the period whilst there was
a further strengthening in the Revolution brand like-for-like*
sales trend over the course of the period.
The Board expects the Group's Interim results to be published on
26 February 2020 with underlying earnings, as measured by adjusted
EBITDA** on a pre-IFRS16 basis, to have improved in line with
market expectations. As previously advised, these results will
incorporate the new accounting standard on leasing arrangements
(IFRS16) using the modified retrospective approach. Results will be
published on a pre and post-IFRS16 basis in order to allow true
comparability against the prior period results.
Post interim reporting period transaction
The Board is also pleased to announce that since the end of the
interim reporting period, it has exchanged contracts with real
estate investment company Aprirose, landlord of nine of the Group's
properties, to surrender five leases of loss-making sites and
re-gear a further four leases with a small net rent reduction but
with a 25 year term. The transaction is expected to complete in
March on payment by the Group of a premium equivalent to less than
three times the annual trading losses of the five lease surrenders.
The net effect of these transactions is to improve the Group's
on-going full year operational cash flows by cGBP1.2m per
annum.
Commenting on the trading performance, Rob Pitcher - Chief
Executive Officer said:
"I am delighted with our Christmas trading and the steady
improvement in our like-for-like* sales performance over the first
half is further evidence that our key initiatives are driving both
operational and financial improvement. Considerable strides have
been made in rebuilding customer loyalty and driving sales and
profit from the existing estate, creating a stronger business with
significant cash generation. Whilst external cost pressures
persist, we will continue to manage cautiously, using excess cash
to reduce indebtedness below one times EBTIDA before we will
consider further expansion opportunities"
* Like-for-like sales comprise aggregate sales for those bars
that have traded throughout both the current reporting period and
comparable reporting period.
** Adjusted EBITDA excludes exceptional items, bar opening costs
and share-based payments.
15(th) January 2020
Enquires
Revolution Bars Group Via Instinctif Partners
Rob Pitcher, Chief Executive
Officer
Mike Foster, Chief Financial
Officer
Instinctif Partners
Matthew Smallwood
Jack Devoy 020 7457 2020
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
TSTEAXFLFDFEEFA
(END) Dow Jones Newswires
January 15, 2020 02:00 ET (07:00 GMT)
Grafico Azioni Revolution Bars (LSE:RBG)
Storico
Da Mar 2024 a Apr 2024
Grafico Azioni Revolution Bars (LSE:RBG)
Storico
Da Apr 2023 a Apr 2024