Revolution Bars FY earnings seen ahead of market expectations
Revolution Bars said on Tuesday that its full-year earnings were set to be "slightly ahead" of market expectations following solid trading over the Jubilee bank holiday.
The AIM-listed company, which operates the Revolution and Revolucion de Cuba bars, reported a continued strong performance across the group, particularly from its refurbished bars, .
"Whilst not being immune to the widely reported inflationary headwinds in the UK, we continue to manage and control costs tightly wherever possible," it said.
It said that after "positive" trading over the bank holiday weekend, it is confident of delivering adjusted earnings before interest, taxes, depreciation and amortisation after rental charges slightly ahead of the top end of market expectations of £10m.
In addition, the company has agreed terms on two new leasehold bars in Exeter and in Preston, which are its first new sites since 2018. Both new bars will trade under the Revolution brand and are expected to open in June 2022.
Chief executive officer Rob Pitcher said: "Revolution Bars Group is in great shape and it's great to be back doing what we do brilliantly. The business is well funded and the investment we have made in our refurbishment programme is delivering positive results and delighting our guests. This, together with encouraging trading, underpins our confidence in our expansion plans with two new bars due to open later this month and an excellent pipeline of new sites in place.
"Our success in delivering our vision and strategy is testament to the whole team's hard work and their ability to create fun and memorable experiences for our guests."
At 1045 BST, the shares were up 11% at 16.78p.