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Revolution Bars Group
03 September 2020
 

Revolution Bars Group plc (''the Group'')

Trading update and FY20 full year results reporting date

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 period since it commenced the reopening of its bars on 6 July 2020. 

The Group had reopened 18 bars by the end of July, and as of Monday 25 August 2020, 39 bars were trading.  Trading in the period since reopening has been ahead of the Board's expectations, in part as a result of the Eat Out To Help Out ("EOTHO") scheme.  Comparable* venue sales in the 8 weeks to 29 August 2020 were 72.5% of last year. In the first four weeks of the period (to 1 August 2020) comparable* venue sales were 60.0% of last year but in the last four weeks (to 29 August 2020), during which time the EOTHO scheme has been operating, comparable* venue sales were 77.5% of last year.  EOTHO has been a big success in the last four weeks driving Monday to Wednesday comparable* venue sales to 188.4% of last year. 

These comparable* venue sales performances are higher than indicated in the 'Fundraising, Proposed Delisting and AIM Admission' announcement issued on 5 June 2020, which referred to a base case scenario of venues reopening in August and delivering 55 per cent of prior year sales with only marginal improvement in September and October. As a result of the positive response to the EOTHO in August, the Group announced last week that it would continue to run EOTHO at its own cost at least through September.

A further 10 bars have opened this week and a further 13 are currently planned to reopen on Monday 7 September 2020.  This leaves 11 bars that are unlikely to reopen until social distancing restrictions are further relaxed.  The Group has agreed to surrender the lease of Revolution Liverpool - Cavern Quarter effective 30 September 2020, and consequently this venue will not reopen.

The Group remains focused on reducing costs whilst trade is constrained by social distancing restrictions.  The Board is grateful to the support of landlords at 23 of its venues for granting rent waivers to share the burden of rent through this difficult period in accordance with the UK Government's Code of Practice.  The Board believes that ongoing discussions with landlords at 16 other venues could reach an acceptable outcome before the September quarter date but is disappointed that almost half of its landlords have refused to enter into meaningful discussions at this time. 

Senior management's priorities remain reopening venues and operating responsibly to ensure the health and safety of both staff and customers and attempting to engage with landlords in a meaningful way to resolve the outstanding rent issues.  This, together with the gradual process of bringing central support team members out of furlough as venues reopen and the logistical challenges of a remote audit process, means that the preliminary announcement of the annual results is not expected to take place until the end of November 2020.  The Company will announce a definitive date for the preliminary announcement in due course. 

 

*comparable venue sales are sales at only those venues that traded on the same day in both the current year and last year reporting periods.

Rob Pitcher, CEO, comments:

"Having opened two thirds of our estate I'm pleased that these bars have outperformed our base case scenario assumptions, however, sales in the 8 weeks since reopening commenced remain 27.5% below last year despite the assistance of the government's 'Eat Out To Help Out' scheme that finished earlier this week. We have more openings planned during this week and next but will have eleven bars that are very unlikely to resume trading until there is a further relaxation of social distancing measures and late-night venues are legally allowed to reopen.  Overall, the Board's expectations for the year ahead remain unchanged.

"We would welcome an indication from government as to their inclination to assist in the grave issues that exist with commercial rental arrears and the moratorium that is due to end on 30 September 2020 as well as an indication of further financial support for the late-night venues sector that remains closed by government order."

3 September 2020

 

Revolution Bars Group plc

Tel: 0161 330 3876

Rob Pitcher, CEO

Mike Foster, CFO

 


 

FinnCap, NOMAD and Joint Broker

 

Tel: 020 7220 0500

Matt Goode / Simon Hicks / Teddy Whiley (Corporate Finance)

Tim Redfern / Richard Chambers (ECM)


 

Peel Hunt LLP, Joint Broker

 

Tel: 020 7418 8900

George Sellar / Andrew Clark

  


Instinctif (Financial PR)

Tel: 07831 379122

Matt Smallwood

Jack Devoy


 

This announcement contains inside information within the meaning of the Market Abuse Regulation. The person responsible for arranging release of this announcement on behalf of Revolution Bars Group plc is Mike Foster, Chief Financial Officer.

 

 

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