The chief executive of Revolution Bars Group, which is behind vodka bar Revolution and rum bar Revolución de Cuba, has warned that the coming months are “going to be challenging and uncertain, not only for us, but for many businesses”. It has also lowered its EBITDA guidance.

In a trading update, the company reported a rise in LFL sales for the five weeks to 31 December 2022 of 17.3 per cent, compared to the same period in 2021.

It noted that strong corporate party bookings reflected a return of corporate guest confidence, although the comparative period was affected by Omicron.

Furthermore, pre booked party revenue in the Christmas trading period was up 10.3 per cent against 2019, representing an all-time LFL sales record for the group.

However, Revolution added that its guests’ confidence in the “reliability of the train service and their ability to travel has been severely impacted over recent months, with the threat of and ultimately significant industrial action through strikes in the week commencing 11 December, traditionally our busiest week of the year”.

“This, taken together with the ramifications of the cost of living crisis, has meant that our walk-in revenue was lower than in previous years, with a consequential impact on group sales.”

Elsewhere, the group’s recently acquired Peach Pubs business continued its “strong performance, delivering LFLs over the same period” with revenues increasing  7.5 per cent compared to 2021 and 10.1 per cent compared to 2019.

Overall in H1 – the 26 weeks ended 31 December – compared to the same period in 2019, LFL sales were down 9.4 per cent.

As a consequence of the impact on its Christmas trading period, the board has reassessed its expectations of the group’s FY23 outturn assuming that “industrial action subsides, energy prices hold at their current levels and taking into account various mitigating actions being undertaken”.

As such, it has concluded that the IAS 17 EBITDA outturn for the year, including rental costs, is likely to be “lower than previously guided” and is estimated to be at the bottom end of the range of market expectations, of £6.7m to £10.5m.

Chief executive Rob Pitcher said: “Given the current economic environment, the coming months are going to be challenging and uncertain, not only for us, but for many businesses.  We are not immune to this.

“The board have reviewed their expectations for the full year, taken a number of actions to mitigate the external factors where possible, and will continue to track these closely.

“The decision to close some bars on a Monday and Tuesday in the early weeks of the year allows us to minimise energy usage in our quietest period whilst also allowing our teams to recover after the busy Christmas period.”