Revolution Bars Group bounces back after bars see ‘rapid recovery’
(RBG ) said it has seen “huge pent-up demand and a rapid recovery” since the business recommenced trading outside last month across 20 of its bar venues.
RBG, which operates 66 premium bars under the Revolution and Revolucion de Cuba brands, said it was ‘excited’ to be able to recommence activity outside on 12 April 2021.
In its interims last month, the firm said it was ‘ready to bounce back to capture the pent-up demand and to take advantage of the improvements made to our brands over the past year.
Since then, a further five bars have opened outdoor space including those as permitted by the relaxation of restrictions in Scotland, Wales and Northern Ireland, the group reported.
Since their opening, the group said its bars have traded extremely strongly, ‘fulfilling the desire for our customers to return despite the often unseasonably cold weather,’ it noted.
The company explained how the restrictions in place are such that in the bars where it has been able to trade outdoors, the covers available represent approximately only 15% of total capacity of those venues, which are also trading for shorter hours than normal, it noted.
Revolution said these venues have delivered 48% of the sales in the four weeks to 9 May 2021 when compared to the same 2019 period when there were no COVID-19 restrictions.
Shares in Revolution Bars Group have increased by nearly 40% in value since the beginning of 2021. The stock was trading 13.28% higher this morning at 36.25p following the news.
The Group attributes the strong performance to the strength of its brands, its customer base and the improvements it has made to the business during the period of forced closure. Net bank debt as at 10 May 2021 stood at £28.5m, with total available facilities of £40.2m.
Following the customer reaction that it has seen over the last four weeks, the Board said it is confident that significant further pent-up demand exists. As a result, it said further strong trading is anticipated in the months to come as restrictions fall away and bars fully open.
Taking the above into account, together with continued tight cost control and better than anticipated support from third parties, the group now expects that its full year performance for the year ending 30 June 2021 will be ahead of previous management expectations.
Commenting on the trading success to date, Rob Pitcher, CEO of Revolution Bars Group said: "As predicted we have seen huge pent-up demand and a rapid recovery across the nation in the bars with outside space that we have been able to open to date.”
He said the ability to trade inside from Monday provides “another landmark”. While venues will be restricted to using less than 50% capacity, the firm said the demand it has witnessed in recent weeks provides it with the confidence to open all its remaining bars.
Pitcher said, “We are delighted to welcome our guests back indoors from 17 May 2021 and look forward to the full benefits still to come when all restrictions are lifted in mid-June."
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