Revolution Bars Group shares suspended after results delay

Revolution Bars Group shares suspended after results delay

  • The hospitality firm operates Peach Pubs and the Revolucion de Cuba brands 
  • Revolution Bars revealed it could not publish its half-year results by 30 March 

Revolution Bars Group shares have been temporarily suspended from trading on the junior AIM market.

The embattled hospitality firm, which operates Peach Pubs and the Revolucion de Cuba brands, failed to publish its half-year results last week, thereby forcing the shares’ suspension under City rules.  

The group last week revealed it was ‘exploring all strategic options’ to bolster its ‘future prospects’ following a difficult trading period.

This could include a ‘restructuring plan for certain parts’ of the business, a partial or complete sale of Revolution Bars, and ‘any other avenue to maximise returns for stakeholders’.

Revolution also said talks were happening with prominent shareholders and other investors, such as Gail’s Bakery chairman and former Pizza Express co-owner Luke Johnson, regarding a potential fundraising.

Sky News recently reported that the group was looking to raise about £10million and shut 20 of its worst-performing establishments, equivalent to a quarter of all venues.

In January, Revolution announced plans to close eight bars, including locations in Derby, Beaconsfield and Sheffield, to ‘reduce future site losses.’

This was despite the company enjoying its strongest Christmas trading period in four years, with like-for-like sales up 9 per cent in the four weeks ending New Year’s Eve.

Since then, the business has lowered its annual earnings guidance to between £3million and £3.5milllion.

It blamed the downgrade on soft demand during January, continued rail strikes, and ‘above inflation’ rises in business rates and payroll costs, with the latter impacted by the recent hike in the national minimum wage.

Rob Pitcher, chief executive of Revolution Bars, said at the time that the firm’s ‘younger clientele were ‘still feeling the disproportionate effect of the cost-of-living crisis’.

He added: ‘We have had to take the view that, with inflation remaining high, the recovery for the Revolution business, our largest brand, will take longer than we had previously forecast.’

Based in Ashton-under-Lyme, Revolution generated £152.6million in revenue during the last financial year but fell to a £22million loss that it partially blamed on Friday sales being damaged by more people working from home

Harry Wise

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