Revolution Bars Group is looking to fit up to 80 new bars across the UK if a forthcoming IPO proves successful, it revealed this week.
The Ashton-Under-Lyme-based, which trades as Revolution and Revolución de Cuba, confirmed it is seeking a listing on the London Stock Exchange, with the IPO likely to take place in March.
It is not known how much the firm expects to raise from the share offering, but the move is designed to trigger an aggressive growth plan following a decade in private ownership.
Revolution currently operates almost 60 bars around the UK but believes it can create a group with about 140.
The group is keen to pursue larger format bars of up to 7,800 square feet. These are almost 70%larger than the Group’s standard format bars and typically require around £1.7m worth of development investment per site but have historically delivered more revenue and higher profits.
The design of the bars, use of high quality equipment and freshly-prepared food are all intended to attract customers from the premium end of the 18-35 year old mainstream market that are willing to pay a premium.
Chief executive Mark McQuater revealed the company is targeting a roll-out of up to five new bars per year by the end of its 2017 financial year.
“Revolution Bars Group is one of the leading players in the UK’s premium drinking out and casual dining out markets, with a well-invested trading estate of 58 bars that is generating market-leading returns in this sector,” he said.
“Both Revolution and Revolución de Cuba are premium brands which target a growing market where we believe a premium offering is in demand. We believe that a successful listing will complement the group’s growth strategy and help support our roll-out plans for the group’s branded bars in the UK.”
The Ashton-Under-Lyme-based outfit made sales of £109m in its last financial year, achieving EBITDA of £13m.