Revolution Bars Group has announced a pretax loss for fiscal 2023 due to non-cash exceptional impairment charges. The challenges faced in the previous year have persisted into fiscal 2024.
Impact of Cost-of-Living Crisis and Working-from-Home Trend on Sales
The U.K. bar operator has been significantly affected by the cost-of-living crisis, especially in the late-night hospitality sector. Additionally, the working-from-home trend, particularly on Fridays, has had a negative impact on sales.
Like-for-Like Sales Performance for Year Ending July 2, 2024
As of now, like-for-like sales for the year ending July 2, 2024, have decreased by 5.5% compared to the same period last year. However, there has been an improvement in the last three weeks, with a 3.5% decrease primarily due to the return of students and corporates to bars, as well as a strong performance in pubs.
Financial Performance Highlights for Fiscal 2023
In fiscal 2023, Revolution Bars Group recorded a pretax loss of £22.2 million, contrasting with a pretax profit of £2.1 million in the previous year. Nevertheless, revenue experienced an increase to £152.55 million from £140.8 million.
Anticipating Macroeconomic Challenges
Given the ongoing challenge of high interest rates, the company projects that the macroeconomic climate will remain difficult for a further 12-to-18 months. Revolution Bars Group is closely monitoring the situation and implementing cost-saving measures wherever possible.