Shares in Revel Collective, the operator of Revolution Bars, Revolución de Cuba, and Peach Pubs, fell 27.5% on Wednesday after the company warned of lower-than-expected earnings for the financial year ending 28 June 2025.
The group said annual earnings before interest, taxes, depreciation, and amortisation (EBITDA) under IAS 17 accounting standards are now expected to be between £2 million and £4 million, citing weaker consumer sentiment and higher costs linked to government budget changes.
These budgetary adjustments are anticipated to reduce annual profits by £4 million.
While Christmas trading saw record pre-booked revenue and a 1.6% rise in like-for-like sales, the group's bar brands underperformed earlier in the financial year due to delays in completing its restructuring plan and a sluggish late-night market recovery.
Net debt stands at £14.4 million, and the company plans to restrict discretionary spending to preserve financial headroom.
In morning trading the stock was off 0.11p at 0.29p.