Revolution Bars suspends shares following financial results delay

Revolution Bars has suspended trading on its shares, after a delay in announcing its results for the second half of the latest financial year.

The firm, which trades mainly under the Revolution, Revolucion de Cuba and Peach Pubs brands, said in a statement that suspension from trading will be lifted with the publication of the interim results in due course.

This suspension is in line with AIM rules, which state that companies are required to publish their interim results by 30 March. Failure to do so means that trading on ordinary Revolution shares have been suspended as of today.

Revolution Bars, which operates 58 bars and 22 gastro pubs across the UK, announced plans to close eight sites after recording a 2.8% drop in like-for-like sales in the first half of the latest financial year.

Furthermore, it said that "guests continue to be disproportionately impacted by the current macroeconomic conditions" and that the statutory 10.8% increase in the national living wage in April will also cause further financial challenges.

The group stated last week that "following a period of external challenges which have impacted the company’s business and trading performance", the board is actively exploring all the strategic options available to it to "improve the future prospects of the group".

This includes a restructuring plan for certain parts of the group, a sale of all or part of the company and "any other avenue to maximise returns for stakeholders".

Sky News also reported that the firm is drawing up plans to close around 20 of its bars.

Following last week’s announcement, investment director at AJ Bell, Russ Mould, said: "Hospitality had a tough time during Covid and the inflationary pressures of the last couple of years have only compounded the situation.

"This is the unhelpful context in which Revolution Bars operates and it’s not a major surprise to see the company confirm speculation it is looking to raise emergency cash and slash its workforce. The share price reaction suggests the market is expecting a discounted and highly dilutive fundraising."

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