Revolution Bars warned that its figures this year would be below the predicted profit of around £17m £18m analysts were hoping for.
The brand, which now has 67 sites, blamed site openings, higher business rates bills, increased wages and the new apprenticeship levy for damaging profit forecasts. Its shares plummeted 30% following the announcement.
It also said that its five new Revolucion De Cuba branches, which it opened in the past year, are “taking longer to mature to full profitability than originally anticipated”. On top of this, key sites in Blackpool and Cardiff were closed for two weeks for refurbishment which has contributed to the damage.
But directors said that underlying sales were positive in H2 and that like-for-like sales grew by 1.7%.
In a statement, the group said: “The directors remain confident in the underlying strength of the business, its brands, the strong customer proposition and the business’ capability to deliver high returns on invested capital. Consequently, it remains the plan to open six new bars in the next financial year.”