Revolution Bars: Young people cutting spending makes for 'challenging' year

Revolution Bars Group said it expects trading to remain "challenging" as younger customers cut back on spending in its late-night bars.

Comparable sales in the year to 2 July were 8.7% down on pre-pandemic levels amid the cost of living crisis.

However, the group said Christmas party bookings were up 24.7% on last year as demand from corporate guests returned.

"[When] our guests have the opportunity to go out and enjoy themselves we see them come to us," said Revolution chief executive Rob Pitcher.

The group, which operates 68 bars under its Revolution and Revolution de Cuba brands, acquired the 21-strong Peach Pubs group for £16.5m in October 2022.

It said sales at the pubs were 14% ahead of pre-pandemic levels and it saw "significant opportunities" to invest in and expand the brand.

As a result, Revolution expects to report yearly earnings before interest, tax, depreciation, and amortisation (EBITDA) of £6.6m, "in line with market expectations".

Revolution had net bank debt of £20.8m as of 25 July.

Pitcher added: "FY23 has been very challenging, however we have controlled costs and limited capex in the second half to reduce net debt."

Revolution said it paused its refurbishment programme in January, after completing five major revamps of sites in six months, when the "depth of the challenges faced by the UK economy more generally, and our Revolution guests in particular, became clear".

The group said it planned to restart the programme as soon as it was possible but would limit investment to "where it [was] essential" in the meantime.