Revolution Bars Group PLC (AIM:RBG), the hospitality operator, dropped over 3% on Tuesday after underlying profits fell and it slipped to a full-year operating loss, with the group suffering from a dampening of consumer demand, especially in the late-night segment.
Underlying earnings (EBITDA) dropped from £19.4 million in 2022 to £17 million in the 2023 financial year, with the Peach Pubs owner swinging to an operating loss of £15.2 million, a trading update revealed.
Sales increased to £152.6 million for the 52 weeks to 1 July 2023, but when accounting for price rises, revenues dropped by 8.7% on a like-for-like basis.
Part of the reason for the lower growth has been attributed to the cost-of-living crisis and in particular, the company noted how post-pandemic there has been a slowdown in late-night hospitality.
Fridays are considered one of Revolution’s best nights of the week, but due to an increasing amount of people working from home, this trend has waned and therefore reduced overall sales.
Having acquired Peach Pubs in late 2022 for around £16.5 million, the AIM-listed company opened one additional site during the year but highlighted that trading in the new financial year had been hampered by poor weather.
Rob Pitcher, chief executive officer, said: “The group now offers a well-rounded, diversified offering through our bars and pubs to navigate the ongoing challenges our guests face with the cost-of-living crisis.
“With pre-booked revenues at record highs for the upcoming festive period, we look forward to our bars and pubs hosting our fabulous corporate guests.
“We join UK Hospitality in calling for the crucial festive season to be protected and for an urgent resolution to the ongoing rail dispute.”
Shares in Revolution Bars are down over 55% in 2023, having opened trading on Tuesday at around 3.5p.