Revolution Bars Group is continuing with opening new sites, including its Revolución de Cuba rum brand, after increases in sales and revenue.
In its preliminary results today, it has reported a 3% rise in like-for-like sales, excluding new openings, for the year to June 30 alongside 2.9% growth in revenue to £111.8m.
Profits are also at a record level, with earnings (EBITDA) up 11% to £14.6m and pre-tax profits up 12% to £8.3m after adjustments.
With 57 bars operating as Revolution and Revolución de Cuba around the UK, the group is on course to open five new sites by June next year. Three rum-oriented Revolución de Cuba venues will open in Milton Keynes, Leeds and Nottingham before Christmas.
Chief executive Mark McQuater said: “We are reviewing many opportunities and assessing all potential new sites against our rigorous and proven investment criteria. We will only proceed on those units that meet our challenging return on capital criteria.”
Chairman Keith Edelman added: “The future, in a highly competitive and changing market, is an exciting one and one in which the board and management are highly alert to the challenges created.
“Our performance in 2015 has given us a solid platform and our current pipeline of new bars gives us the confidence that we can grow the footprint of the group.
“With a clear strategy and our depth of management experience, we remain confident that the business is well positioned for future growth and we expect to make continued progress in 2016.”
Commentary from Fiona Cincotta, a senior market analyst at www.finspreads.com: “Revolution Bars Group has produced some encouraging results in a challenging and crowded marketplace. This is a challenging and crowded market space, however the group appear to be positioning themselves well by rebranding to include premium products. The key going forward will be continued tough assessment of new sites to ensure exclusiveness of these premium products isn`t lost.”
Pictured: Revolución de Cuba, Manchester