Revolution Bars Group PLC (LON:RBG) shares fell on Friday as it posted a half-year loss and left its dividend unchanged.
The UK bar operator reported an operating loss of £3.7mln for the 26 weeks to December 30 against at profit of £5.05mln in the 26 weeks to December 31, reflecting exceptional charges of £9.6mln and the absence of New Year’s Eve comparative to the reporting period.
The exceptional charges related to a provision for onerous lease costs on venues where rental costs exceed the bar contribution, costs incurred in managing corporate activity, asset impairment charges and the change of chief executive Rob Pitcher.
READ: Numis raises a glass to Revolution Bars after strong Christmas performance
Excluding items and the benefit of New Year trading in the previous year, adjusted operating profit rose to £6mln from £5.5mln.
The group decided to leave its interim dividend at 1.65p, due to the additional cash outflows associated with exceptional items and significant capital expenditure associated with opening new sites.
However, the company achieved a rise in revenue to £73.9mln from £66.7mln the prior year and like-for-like sales rose 0.4% despite the absence of New Year’s Eve in the trading period.
Growth was driven by a strong performance over the second quarter and the Christmas period.
Adjusted to include New Year’s Eve, like-for-like sales grew 1.9%.
The company opened four new sites during the period in Belfast, Solihull, Inverness and Putney. It plans to open a further three sites early in the new financial year.
"New openings are performing particularly strongly, and site refurbishments are delivering healthy returns, meaning the group can pursue its strategy of profitable growth and drive like-for-like sales in its core estate," said executive chairman Keith Elderman.
"The business is well set for the arrival of Rob Pitcher in the coming months."
Shares fell 5% to 161p in morning trade.