Revolution Bars shares slump as business issues profit warning
In early trading, shares were down by as much as 18%.
Revolution Bars shares have slumped by 13% after the company issued a profit warning, saying it had been affected by unusually hot and cold weather.
The bars business said its sales fell by 1.7% on a like-for-like basis in the second half to June 9, and that earnings before interest, tax, depreciation and amortisation would be around £15 million – the same as last year.
In a statement, the company said: “The adverse, wintry weather conditions in March combined with the unusually hot weather throughout May and early June, has curtailed typical late-night weekend trading.”
It also cited disruption from the “unsettling effect” of a takeover battle last year, and a long period during which it did not have a chief executive.
Mark McQuater resigned in October 2017 after a proposed £102 million takeover bid for the company broke down.
The group’s executive chairman, Keith Edelman, has been leading the business since Mr McQuater’s departure.
The firm is now welcoming a new chief executive, Rob Pitcher, who will join the business on June 25.
Revolution’s board said it was “confident in the future prospects of the business” despite the profit warning.
The company is pinning its hopes on the opening of new bars, a review of its marketing spend, and the roll-out of new software for managing staff schedules.
In morning trading on Thursday, shares were down 13.15% or 20.6p to 136p.