Revolution bars returns to profitability in H1
Total sales for IFRS 16 increased year-on-year from £21.6m to £74.1m, nearing pre-Covid levels of £81.2m
The Revolution Bars Group has announced its pre-tax profits for the 26 weeks ended 1 January 2022 (H1 FY22) hit £4.3m, up from a loss of £17.7m in the comparative FY21 period, and up from a loss of £1.6m for the same period in FY20.
Additionally, the group returned to profitability with operating profits hitting £6.7m, up from a loss of £14.4m in H1 FY21.
Adjusted EBITDA under was £7.6m, matching the £7.6m adjusted EBITDA the group achieved in H1 FY20, the last period unaffected by Covid-19.
Overall, total sales for IFRS 16 increased year-on-year from £21.6m to £74.1m, nearing pre-Covid levels of £81.2m.
Since Plan B restrictions ended, Revolution has seen positive like-for-like sales on a two-year basis from FY20 (LFL2) at 6% in February, notwithstanding some ongoing restricted trading in Scotland, Northern Ireland and Wales, taking the year to date LFL2 sales since Freedom Day on 19 July 2021 to 0.5%.
Meanwhile, the group launched two new concepts, Founders and Co. and Playhouse, in November 2021 which “continues to deliver extremely encouraging results”.
Revolution also became an above-minimum wage paying employer to attract and retain talent, and its cocktail menu is now carbon neutral, saving approximately 100 tonnes of carbon.
The board is now reportedly confident of delivering adjusted EBITDA towards the top end of the range of market expectations, which is currently between £8m and £10m, assuming no further impact from Covid.
Rob Pitcher, chief executive officer, said: “We are hugely encouraged by the performance in H1 FY22 and are excited about the future as we all now ‘learn to live’ with Covid-19. We are emerging strongly following a period of severe disruption and now believe that, assuming no further variants, we can look forward to a sustained period of growth.
“We continue to urge the Government to support the recovery and rebuilding of the hospitality industry by leaving VAT at 12.5% for food and non-alcoholic beverages and retaining business rates relief at current levels, in-particular maintaining the cap at £2.0 million, not reducing it to £110,000.”
He added: “Demonstrating our renewed confidence, we have signed our first new lease since 2018, have a pipeline of opportunities, and several amazing refurbishments taking place. There’s never been a more exciting time for the group.”
