Revolution Bars Group PLC (AIM:RBG), the hospitality group, lifted more than 2% on Wednesday after a strong performance from the newly acquired Peach Pubs helped achieve results in line with expectations.
Peach Pubs, which was acquired by Revolution Bars in October last year, saw like-for-like sales for the 2023 financial year come in 14% ahead of pre-Covid levels, according to a company statement.
Rob Pitcher, chief executive officer at the bar group, said: “Our acquisition of Peach Pubs was well timed given the impact of the economic challenges to the younger guests in our Revolution bars alongside the working from home trend being exacerbated by continued uncertainty on the rail network.
“The Pubs estate is in great shape and I have enjoyed getting to know the teams at the pubs, as well as seeing our guests enjoy themselves in our beautiful gardens.”
Overall, group sales remained 8.7% behind pre-pandemic figures as the company claimed younger guests were struggling to afford as many nights out.
Due to the tough economic conditions, it is pausing its refurbishing plan, having previously completed five refurbishments in the second half of the fiscal 2022 year.
“We are committed to restarting this programme as soon as we are able. Until then we are limiting capital investment to where it is essential,” the statement said.
The bar industry has been one of the hardest-hit sectors in the hospitality industry.
Throughout the whole of 2023, sales at bars have struggled to grow year-on-year, whereas other areas like pubs and restaurants have been recovering strongly.
In June, like-for-like sales at bars dropped by 8.4% compared to 2022, according to research by the CGA.
Revolution Bars is down more than 25% year-to-date, having opened trading on Wednesday at around 6p.