 fell over 30 percent in early morning trading on Friday, after a slow start for new openings impacted on EBITDA.){kind=link}
Shares in British bar chain Revolution (LON:RBG) fell over 30 percent in early morning trading on Friday, after a slow start for new openings impacted on EBITDA.
In a market update for the 52 weeks to 1 July 2017, the company said it had been hit by both the rise in the living wage, as well as the opening of five new Revolucion De Cubas which have so far underperformed.
Although the company said that it had a reasonable start to the second half with like for like sales continuing to grow by 1.7 percent for the year to date, the “well-publicised sector cost headwinds” from the living wage increase, as well as the new apprenticeship levy and above average inflation, had been more than anticipated.
The underlying sales performance of its six new openings bars remain on track with an average weekly turnover of £43,000, but are “taking longer to mature to full profitability than originally anticipated”.
In light of these developments, Revolution said adjusted EBITDA out-turn for the year is expected to be broadly at the same level as last year, and lower than originally anticipated.
Shares in Revolution Bar Group (LON:RBG) are currently trading down 32.84 percent at 137.00 (1015GMT).