Revolution Bars Group plc (LSE:RBG)
Trading and Property Update
Revolution Bars Group plc ("the Group"), a leading operator of 67 premium bars, trading mainly under the Revolution and Revolucion de Cuba brands, is pleased to announce a trading and property-related investment update for the financial year to date, ahead of the Group's 2 July 2022 year end.
We are pleased to report continued strong performance across the Group, particularly from our refurbished bars, and continued guest enjoyment in all of our brands. Whilst not being immune to the widely reported inflationary headwinds in the UK, we continue to manage and control costs tightly wherever possible. Following positive trading over the Jubilee Bank Holiday, the Board is confident of delivering adjusted EBITDA after rental charges (on an IAS 17 basis) slightly ahead of the top end of market expectations, which currently stands at £10.0 million.
Investment and expansion
Our refurbishment programme has continued at pace and we have completed 16 refurbishments in FY22, 14 in Revolution bars and two in Revolucion de Cuba bars. We expect to complete a further three refurbishments in FY22, taking us to our planned target of 19 refurbishments, with a further 18 planned in the next financial year. The refurbished bars are trading well and we are confident in achieving our two-year payback target.
Further to the strong trading reported above, we are pleased to confirm that we have agreed terms on two new leasehold bars in Exeter and in Preston, which are the Group's first new sites since 2018. Both new bars will trade under the Revolution brand and are expected to open in June 2022.
Our two new brands, Playhouse and Founders & Co, have proved to be exciting additions to the Group therefore adding additional optionality within the estate.
Looking forward, we have an exciting pipeline of future new sites and we expect to open a further six bars in FY23.
The Group intends to publish its Annual Results for the financial year ended 2 July 2022 on 18 October 2022.
Rob Pitcher, CEO of Revolution Bars Group, said:
"Revolution Bars Group is in great shape and it's great to be back doing what we do brilliantly. The business is well funded and the investment we have made in our refurbishment programme is delivering positive results and delighting our guests. This, together with encouraging trading, underpins our confidence in our expansion plans with two new bars due to open later this month and an excellent pipeline of new sites in place.
"Our success in delivering our vision and strategy is testament to the whole team's hard work and their ability to create fun and memorable experiences for our guests."
14 June 2022