Revolution Bars eyes return to expansion as turnaround progresses
Revolution Bars has signalled plans to return to expansion in the next financial year as it makes progress with its turnaround plan.
The bar business, which also runs Revolucion de Cuba, said it is focusing on consolidation for the rest of the financial year after closing five sites shortly after the most recent six-month period.
The London-listed firm updated investors on its turnaround plans as it reported a 20.5% jump in adjusted pre-tax profits to £3.5 million in the half-year to December 28.
Meanwhile, total sales increased by 3.5% to £81.2 million for the period, with like-for-like sales 1.2% higher.
The hospitality business said it has also seen improving consumer confidence in recent months, as it was buoyed by 4% growth over the key Christmas period.
Rob Pitcher, chief executive officer of the company, said it has made “significant progress” in revitalising the Revolution brand and has also improved the performance of its Cuban-themed sister business.
He said: “Half two has started encouragingly and should we continue on our current trajectory then the board is confident the business will be well-positioned to resume site expansion in full-year 2021.”
Mr Pitcher also said he would join others in the hospitality sector in urging the Government to look at reforming business rates.
He told the PA news agency: “We urgently need a review of rates.
“Our rates were almost £100,000 per site per year, having risen from around £60,000.
“The current rates system is simply an outdated system so its something we hope they look at.”
Shares in the company slipped 3.8% lower to 65.4p on Wednesday.