Revolution bars operator plans UK-wide expansion following profit hike

Bar operator Revolution Bars Group has achieved record profits and plans to open five new sites.

The Greater Manchester-based firm, which runs the UK-wide network of Revolution bars and restaurants, saw its gross profit rise to £84.6m and its operating profit hit £2.9m in the six months to June 30 2015, representing year-on-year increases of £661k and £249k respectively.

Meanwhile, Revolution Bars Group’s adjusted EBITDA rose year-on-year by £1.4m to hit £14.6m in the first half of 2015, which group CEO Mark McQuater has put down to brand repositioning and bar upgrades.

The period also saw the Ashton-under-Lyne-headquartered company’s total administrative expenses rise by £412k, although the figure was counterbalanced by a revenue increase of 2.9%.

Commenting on the results, group chairman Keith Edelman said: “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.”

Having invested £5.7m in developing and maintaining its current portfolio of 57 bars in the first half of 2015, Revolution Bars Group plans to launch an additional five between now and June 2016, with three due to open in the build-up to Christmas.

The firm has confirmed that its Revolución de Cuba brand will be the focus of the expansion.

Mr Edelman added: “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.”