Shares in premium bar operator Revolution Bars (RBG:AIM) shot 10% higher on Thursday to 24.7p after it said first quarter trading was well ahead of expectations.
Since all pubs and bars restrictions were removed in England on 19 July, two weeks into the company’s new financial year, it has seen strong demand from party revelers which pushed like-for-like sales up 21% in the period to 2 October compared with pre-pandemic levels two years ago. Around 83% of the estate operates in England.
Restrictions were gradually but wholly removed in the remaining home nations over the period, resulting in total like-for-like sales across the whole estate up 17% compared with two years ago.
A tight control of costs resulted in ‘good profit’ generation, the company said.
‘EXCELLENT TRADING’
Chief executive Rob Pitcher commented: ‘It is extremely encouraging to see we have capitalised on the pent-up demand we predicted, which has been reflected in excellent trading so far this year.
‘We are therefore confident in the group’s outlook assuming that there are no further restrictions on our ability to trade.’
Before today’s announcement, analysts expected the company to get back into the black in the current financial year to 27 June, with an operating profit forecast of £4 million, according to Refinitiv data.
At 6 October the company held net cash of £3.7 million and had £36.5 million of headroom on its banking facilities. The company intends to publish its preliminary results for the year ended 3 July 2021 on 16 November.
