TAKEOVER target Revolution Bars has revealed annual profits fell by almost a third and cautioned over cooling Autumn sales.
The nightclub and bar group - which is at the centre of a takeover tussle - said pre-tax profits fell 29 per cent to £3.6 million for the 12 months to July 1 after sales growth slowed and costs soared.
The Ashton-under-Lyne-based firm, which owns more than 60 Revolution and Revolucion de Cuba high street bars, including an outlet in Belfast which it opened in July in the former Cafe Vaudeville, said like-for-like sales rose by 1.5 per cent in the year.
But it added that trading since its year-end has been hit by a "disappointing" September, with first quarter sales growth easing back to 0.3 per cent.
It cautioned: "July and August returned to a more normal trading pattern following the terrorist incident in Manchester in May, whilst September trading, for the sector as whole, has been disappointing, largely due to this year's very wet and cool weather compared to record temperatures in September last year."
Revolution issued a profit warning in May, which sent shares tumbling and sparked off takeover interest in the group.
Slug And Lettuce owner Stonegate said in August it had struck an agreement to acquire Revolution Bars in a £101.5 million deal, but shortly after rival Deltic Group said that it was also looking at a rival bid for the group.
Revolution rejected the approach from Deltic, one of Britain's biggest nightclub operators, to merge the two firms over "significant concerns regarding both value and deliverability".
Deltic is still considering whether to make a cash offer for Revolution to rival Stonegate's bid of 203p a share. It must make its intentions clear by 5pm on October 10 under City takeover rules.
Keith Edelman, chairman of Revolution, said: "Deltic is continuing to perform due diligence on the group, and the board is committed to ensuring that the interests of shareholders are best served."
He added: "Given the recommended cash offer for the business from Stonegate, it is likely that the ownership of the company will change in the next few weeks.
"However, such an event is not certain and, whatever the outcome of the potential transactions, the business is well placed to succeed."
Stonegate is the fourth largest managed pub company in the UK by sites.
Deltic's estate consists of 57 clubs, including those operating under the PRYZM, Bar and Beyond, Steinbeck and Shaw, Atik, and Fiction brands.
Revolution's full-year results showed that on an underlying basis, the group's annual pre-tax profits rose to £9.3 million from a restated £7.4 million the previous year.
Its bottom line has been knocked by a sector-wide surge in costs, including the impact of the living wage and the new apprenticeship levy, as well as an above-inflation increase in business rates.
