Revolution Bars

Tuesday, 2nd October 2018 09:16 - by Rajan Dhall

Today we received the latest prelim report from Revolution Bars I have mixed feelings about the forward guidance and like for like performance statistics. The Co. state ''Pre-booked Christmas sales up 20.3% (LFL : 14%) on the same time last year'' but currently like-for-like sales are down -5%. Here are some of the other highlights from the report:

·     Sales of £141.9m (FY17: £130.5m), up 8.7%

·     FY like-for-like sales decline of 0.6% following 1.9% growth in H1

·     Final dividend maintained at 3.3p per share (FY17: 3.3p per share)

·    H2 impacted by the uncertainty following corporate activity, management change, extremes of weather and the FIFA World Cup

·     All aspects of the business reviewed, issues identified and actions planned to improve performance

·     Most recent like-for-like sales of -5%, but benefits of new initiatives put in place by new CEO yet to work through

Rob Pitcher, Chief Executive Officer, commented "This is a fundamentally good business which has seen significant disruption over the past year and factors outside of its control. He also when on to say ''The performance of our new sites is encouraging, in line with our expectations and set to deliver good returns underpinning our strategic view of the business.  Our confidence in the potential of the Group is undiminished."

Looking at the weekly chart, price action is still in a downtrend and we may see another test of the 100p area again. There are two support areas to keep eye on first of all the trendline from the lows in May last year connecting to the low in September. There is a chance we may see some support at that level and a break could indicate a move down to 99p which is the key support on the chart. At the moment in the last couple of weeks prices have consolidated indicating that the downside momentum is slowing but I'm not sure today's RNS will be enough to stop the trend.

The Writer's views are their own, not a representation of London South East's. No advice is inferred or given. If you require financial advice, please seek an Independent Financial Adviser.