Trading under its Revolution and Revolución de Cuba brands, Revolution Bar Group’s sites have traded at 86% of 2019 levels since indoor trading resumed on 17 May under the Government’s post-lockdown roadmap – despite seated covers representing just 28% of its bars’ total capacity.
Following customer reaction during the six-week period, the operator’s Board is now confident that significant pent-up demand exists and that further strong trading is anticipated as restrictions fall away.
However, the group’s statement also revealed that Revolution remains cautious about the coming financial year as the continuing impact of Covid-19 remains unclear.
Prime Minister Boris Johnson is to set out how he will “restore people’s freedoms” by removing all Covid measures including face-covering and social distancing laws from 19 July.
Huge ‘pent-up demand’
According to its statement, the Group expects full year performance for the 12 months ending 3 July to exceed previous expectations with an earnings before interest, taxation, depreciation and amortisation (EBITDA) loss of approximately £12.5m and net bank debt improved to £5m.
“As predicted we have continued to see huge pent-up demand and a rapid recovery across the nation in our bars following indoors reopening,” Rob Pitcher, CEO of Revolution Bars Group said.
“We were disappointed to see that the much anticipated ‘Freedom Day’ of 21 June was delayed but the new date of 19 July, when our bars will be able to trade without restrictions, looks more certain than ever.
“Following sixteen months of Government-imposed restrictions on our business our customers are very keen to take advantage of our full guest experience,” he added.
“While we anticipate strong demand for our late-night offering, we continue to be cautious about possible restrictions on our business during the winter period.”
In its most recent results statement, Revolution revealed plummeting sales in the first 24 weeks of FY21 as a result of “severe and constantly evolving trading restrictions.”
In a preliminary results statement for the 25 weeks ended 27 June, Revolution Bars Group highlighted total revenue for FY20 had fallen to £110.1m compared to £151.4m in the previous 12-month period, while statutory pre-tax losses deepened from £5.6m to £31.7m.
What’s more, the Group also revealed revenue for the 24 weeks from July 2020 stood at £20.6m, down by 58.6% against the £74.1m taken during same period the previous year.