(Alliance News) - Revolution Bars Group PLC on Wednesday said its recovery will take longer than previously forecast as younger drinkers are feeling the squeeze of the cost of living crisis in the UK.
Revolution Bars shares were down 17% to 3.20 pence each on Wednesday morning in London. The stock fell as far as 2.50p earlier Wednesday, just above its 52-week low of 2.45p.
The Tameside, England-based operator of 58 premium bars reiterated that like-for-like sales in the four weeks to December 31 from December 4 were up 9.0% year-on-year, "the best festive period since 2019".
However, citing "soft" January trade, the company expects IAS 17 earnings before interest, tax, depreciation and amortisation for financial 2024 of between GBP3.0 million and GBP3.5 million, down at least 47% from GBP6.6 million in financial 2023, which had ended on July 1, 2023. IAS 17 is an alternative performance measure.
Revolution Bars said younger customers are "still feeling the disproportionate effect of the cost-of-living crisis.
"Looking forward, both business rates and national living wage will increase materially in April 2024 and therefore we have had to take the view that, with inflation remaining high, the recovery for the Revolution business, our largest brand, will take longer than we had previously forecast."
The company expects to publish results for the half-year ended December 30 at the end of March.
By Tom Budszus, Alliance News slot editor
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Rev Bars (RBG)