Revolution Bars Group has blamed ‘adverse weather conditions’ for its latest trading results.
The company said sales had fallen short of expectations after ‘challenging and volatile trading conditions’ in the 52 week period ending June 30, 2018.
The Ashton-under-Lyne based group said its sales fell by 1.7 per cent on a like-for-like basis in the second half to June 9, and that earnings before interest, tax, depreciation and amortisation would be around £15 million – the same as last year.
In a statement, the company said: “The adverse, wintry weather conditions in March combined with the unusually hot weather throughout May and early June, has curtailed typical late-night weekend trading.
“Both of our brands have seen similar changes in their sales trends over this period, although Revolucion de Cuba like-for-like sales remain in growth.
“For the 49 weeks to 9 June 2018, total sales are up by 9.1% and like-for-like sales are down by 0.5%.
“Wet sales have performed better than food, particularly in the Revolution estate where little food development and innovation was undertaken in 2017. This development is now underway for delivery in Q1 next year.”
he group also cited disruption from the “unsettling effect” of a takeover battle last year, and a long period during which it did not have a chief executive.
Mark McQuater resigned in October 2017 after a proposed £102 million takeover bid for the company broke down.
The group’s executive chairman, Keith Edelman, has been leading the business since Mr McQuater’s departure.
And the firm is about to welcome new chief executive Rob Pitcher to the business on June 25.
Revolution’s board said it was “confident in the future prospects of the business” despite the profit warning and that the opening of five new bars had been delivered to schedule.
Looking to the future they have six new sites, including four large bars, scheduled to open in the coming four months.
And the group is set to ‘improve the effectiveness’ of their marketing spends to improve performance.