Strikes, inflation and hot weather hit Revolution Bars Group PLC’s first-half results though the bar owner is hopeful of an improvement over the remainder of the year.
“Early indications show that the trading environment for the entire group should improve as we head towards spring,” Revolution said in a statement.
That is in spite of transport strikes continuing to hit trading, added the hospitality chain, with second-half sales down 6.8% so far though Revolution said this was a 2.6 percentage points improvement over the first six months.
In the half year to 31 December 2022, the acquisition of Peach Pubs helped revenues edge up 3% to £76mln, but the group still dipped into a £100,000 loss (£4.3mln profit) due to the headwinds.
Rob Pitcher, chief executive, said the group had done “everything it could” to mitigate the outside factors and over Christmas had seen record numbers of corporate bookings but walk-in trade had suffered.
Peach Pubs, a daytime-focused chain of 21 outlets acquired in October, had also performed well, he said, and unlike the rest of the business got a boost from the hot weather.
Going forward, Revolution said its fixed-price energy contract ends in March, but it is cutting down on usage across the group and has appointed a broker to help with its purchasing.
“Energy prices are headed in the right direction allowing for greater consumer spending to return, whilst the group should start to see the impact of the easing of input cost increases alongside the positive impact of Peach Pubs,” the company said.
If things stay as expected, Revolution added that underlying profits (adjusted EBITDA) for the year should meet market forecasts.
Net debt at the year-end was £18.5mln, against cash of £4.2mln.