Revolution Bars Group PLC (AIM:RBG) shares dropped 20% in opening trade on Tuesday as the owner of 90 bars and pubs said it expects full-year underlying earnings (EBITDA) to come in lower than previously guided as temporary closures are put in place.
EBITDA is expected to be at the bottom end of the range of market expectations between £6.7mln and £10.5mln, the owner of brands such as Revolution and Peach Pubs said.
The company said the lower guidance is forecast as a result of the Christmas trading period, the assumption that energy prices hold, and several mitigating factors.
These include closures of the group's Revolution and Revolucion de Cuba sites on Mondays and Tuesdays throughout January and early February to save on energy costs.
“Given the current economic environment, the coming months are going to be challenging and uncertain, not only for us, but for many businesses. We are not immune to this,” said Revolution Bars chief executive Rob Pitcher in a statement.
Reporting on the half year to 31 December 2021, Revolution Bars said like-for-like sales in its Revolution and de Cuba bars were down 9.4%, while sales at Peach Pubs, which it acquired in October, were up 9.9%.
During the Christmas period, like-for-like sales were 17.3% compared to 2021, reflecting a bounce back in corporate guest confidence, the company added, although sales last year were impacted by the Omicron coronavirus variant.
However, walk-in revenues were lower as a result of train strikes and the cost-of-living crisis, meaning overall sales were down 9% on pre-coronavirus 2019.
Revolution Bars noted that group net debt as of 31 December was £18.5mln.
In early trading, Revolution Bars shares dropped 20.3% to 5.90p.