- The catering company operates Peach Pubs and the Revolucion de Cuba brands
- Revolution Bars announced that it cannot publish its half-year results before March 30
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Revolution Bars Group shares are temporarily banned from trading on the junior AIM market.
The embattled hospitality company, which operates the Peach Pubs and Revolucion de Cuba brands, failed to publish its half-year results last week, forcing its shares to be suspended under city rules.
The group announced last week that it is “exploring all strategic options” to strengthen its “future prospects” after a difficult trading period.
Missed deadline: Revolution Bars Group, which operates Peach Pubs and the Revolucion de Cuba brands, has announced that it will not be able to publish its half-year results before March 30
This could include, for example, a “restructuring plan for certain parts” of the company, a partial or complete sale of Revolution Bars, and “any other way to maximize returns for stakeholders.”
Revolution also said discussions are underway with prominent shareholders and other investors, such as Gail’s Bakery chairman and former Pizza Express co-owner Luke Johnson, about a potential fundraise.
Sky News recently reported this that the group wanted to raise around £10m and close 20 of its worst performing sites, equivalent to a quarter of all sites.
In January, Revolution announced plans to close eight bars, including locations in Derby, Beaconsfield and Sheffield, to ‘reduce future venue losses’.
This is despite the company experiencing its strongest Christmas period in four years, with like-for-like sales up 9 percent in the four weeks ending New Year’s Eve.
The company has since cut its annual profit expectations to between £3m and £3.5m.
It blamed weak demand in January, ongoing rail strikes and ‘above inflation’ rising business rates and wage costs, with the latter influenced by the recent increase in the national minimum wage.
Rob Pitcher, CEO of Revolution Bars, said at the time that the company’s “younger customer base was still feeling the disproportionate effect of the crisis on the cost of living.”
He added: “We have had to consider that with inflation remaining high, the recovery of the Revolution business, our largest brand, will take longer than we previously forecast.”
Based in Ashton-under-Lyme, Revolution generated £152.6 million in revenue in the last financial year but fell to a loss of £22m, which was partly due to damage to Friday sales as more people worked from home.