Revolution Bars reports recovery in trading to almost pre-Covid levels
Cocktail bar group Revolution Bars said sales have surged as lockdown restrictions were lifted, and it expects revenue for the year to be ahead of previous expectations.
Despite operating at 28 per cent of total capacity since indoor drinking was permitted from May 17, the group today reported that trading since that date has surged to 86 per cent of the same period in 2019 when there were no Covid restrictions in place.
Revenue for the year is expected to be ahead of management’s previous expectations, as the board is confident that pent up demand post-lockdown will continue in the coming months, the group said in a trading update this morning.
Owing to the expected sales success, the group readjusted its management expectations and said it now estimates full year performance for the year ending July 3 will see an EBITDA loss pre-IFRS16 adjustments of around £12.5m, with net bank debt improved to £5m.
“As predicted we have continued to see huge pent up demand and a rapid recovery across the nation in our bars following indoors reopening,” CEO Rob Pitcher said.
“We were disappointed to see that the much anticipated ‘Freedom Day’ of 21 June was delayed but the new date of 19 July, when our bars will be able to trade without restrictions, looks more certain than ever.
“Whilst we anticipate strong demand for our late night offering, we continue to be cautious about possible restrictions on our business during the winter period,” Pitcher added.
The positive trading update comes after the group’s profits were hammered by lockdown earlier in the year, with the group reporting a £59.6m loss in total sales in the first half of 2021, as it took home just £21.6m.
Profits also took a hit earlier in the year, as Revolution Bars confirmed an £11.5m loss before tax in the first half of 2021 as business was unable to trade for the entirety of that period.