Revolution Bars share price plunges after profit warning

The City turned sour on Revolution Bars earlier, with shares in the cocktails specialist plunging more than 31% following a shock profit warning.

The firm behind 67 branches, including in the City, warned figures for the year to July 1 would be below the underlying profit of £17.2 million to £17.9 million analysts had pencilled in.

It said it had been hit by a combination of higher business rates bills, increased wages and the new apprenticeship levy: “These increased costs will be more than anticipated in the current year.”

The chain also warned five new Revolucion De Cuba branches it has opened in the past 12 months- including in Reading and Liverpool, are “taking longer to mature to full profitability than originally anticipated”.

But boss Mark McQuater added second-half sales have been positive, and said “looking into next year we feel more confident”.