Revolution Bars Group Trading Update (7445D)

TIDMRBG

RNS Number : 7445D

Revolution Bars Group

01 July 2021

THE INFORMATION CONTAINED WITHIN THIS ANNOUNCEMENT IS DEEMED TO CONSTITUTE INSIDE INFORMATION AS STIPULATED UNDER THE MARKET ABUSE REGULATION (EU NO. 596/2014) (AS AMENDED) AS IT FORMS PART OF UK DOMESTIC LAW BY VIRTUE OF THE EUROPEAN UNION (WITHDRAWAL) ACT 2018 AND OTHER IMPLEMENTING MEASURES. UPON THE PUBLICATION OF THIS ANNOUNCEMENT, THIS INSIDE INFORMATION IS NOW CONSIDERED TO BE IN THE PUBLIC DOMAIN.

Revolution Bars Group plc (LSE:RBG)

Trading Update

Revolution Bars Group plc ("the Group" or "the Company"), a leading operator of 66 premium bars, trading under the Revolution and Revolucion de Cuba brands is pleased to announce an update to trading ahead of our year end date of 3 July 2021.

As previously announced in our re-opening update of 11 May, our bars traded extremely well within the restrictions in place from 12 April, when trading outdoors was permitted. This strong performance has continued since 17 May when indoor trading was permitted and all of our bars have been able to trade, albeit with continuing significant restrictions such as seated table service and the wearing of masks when guests are not at table.

Despite the restrictions in place since 17 May when seated capacity in our bars represented only 28% of total capacity, we are delighted to report that trading since that date has improved to 86% against the same period in 2019 when there were no Covid restrictions, with revenue for the year therefore expected to be ahead of management's previous expectations.

Following the customer reaction we have seen over the last six weeks, the Board is confident that significant further pent up demand exists and therefore further strong trading is anticipated in the coming months as restrictions fall away and we fully open up the estate. However, we remain cautious about the coming financial year as the continuing impact of Covid-19 remains unclear and we call upon the Government to adhere to the revised Roadmap to allow clarity for all consumer facing businesses.

Taking the above into account, together with ongoing excellent cost control and continued support from third parties, we now expect that our full year performance for the year ending 3 July 2021 will be ahead of previous management expectations with an EBITDA loss pre IFRS16 adjustments of cGBP12.5m, with net bank debt significantly improved to cGBP5m following this period of trading and after our recent equity raise.

Rob Pitcher, CEO of Revolution Bars Group said:

"As predicted we have continued to see huge pent up demand and a rapid recovery across the nation in our bars following indoors reopening.

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.

Following sixteen months of government-imposed restrictions on our business our customers are very keen to take advantage of our full guest experience. 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.

 
 Revolution Bars Group plc           Tel: [phone] 
  Rob Pitcher, CEO 
  Danielle Davies, CFO 
 finnCap, NOMAD and Joint Broker     Tel: [phone] 
  Matt Goode / Simon Hicks / Teddy 
  Whiley (Corporate Finance) 
  Tim Redfern / Richard Chambers 
  (ECM) 
 Peel Hunt LLP, Joint Broker         Tel: [phone] 
  George Sellar / Andrew Clark 
 Instinctif (Financial PR)           Tel: [phone] 1445 
  Matt Smallwood 
  Jack Devoy 
 

The person responsible for arranging release of this Announcement on behalf of Revolution Bars Group plc is Danielle Davies, Chief Financial Officer.

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July 01, 2021 02:00 ET (06:00 GMT)