Joel Muckett 5 Oct 2017 10:46am

Revolution Bars restates accounts for possible takeover

Revolution Bars Group revealed it had to restate its accounts after becoming the target of a takeover by Stonegate Pub Company

The cocktail specialists, who operate Revolution and Revolución de Cuba bars, released its earnings report yesterday and had enlisted PwC to conduct a review.

The report stated that certain marketing expenditures were incorrectly capitalised as short life assets and there had been an over-accrual of supplier rebates at previous period ends.

“As a result, the Board engaged PwC to undertake a detailed independent review of these items,” it said.

PwC completed the report in August, and led to the restatement of accounts for the period that ended 2 July 2016.

“We have been right through the balance sheet making sure the economy is squeaky clean,” Revolution Bars chief financial officer Mike Foster told the Evening Standard.

Stonegate Pub Company made a 203p-per-share bid to acquire the group.

There is also interest from nightclub owners Deltic, who have until October 10 to announce whether they will make a bid or not.

The earnings report also showed pre-tax profits fell from £5.1m to £3.6m, but revenue was up by 9% to £130.5m.

The drop in profits was attributed to increases in general rates, living wage rate increases, and the introduction of the apprenticeship levy, which has recently been a source of contention for businesses.