Revolution Bars Group unveils restructuring plan as sales rise 8.3%
The company announcement of a restructuring plan follows the need to raise additional equity capital from new and existing investors through a fundraising and reach approximately £12.5m
Revolution Bars Group has unveiled a restructuring proposal while also revealing an 8.3% boost in sales to £82.3m for the 26-week period ending 30 December 2023.
Group like-for-like sales for the four weeks from 4 to 31 December 2023 were up 9%, the best festive period since 2019. LFL sales for FY24 H1, including New Year’s Eve, continued to demonstrate an “improving trend” at -2.8%.
The group, which is the UK operator of 58 premium bars and 22 gastro pubs, achieved a profit before tax of £3.1m, after an exceptional gain on disposal of £3.9m relating to the exit from certain leasehold properties. However, the operator reported an adjusted EBITDA of £8.9m, a decrease compared with the £9.8m reached during the same period the previous year.
Despite a strong festive trading period, the pub group said that the macroeconomic trading environment continued to provide a challenging trading environment – as a result, eight site closures were announced in January 2024 to reduce expected future losses.
The company announcement of a restructuring plan follows the need to raise additional equity capital from new and existing investors through a fundraising and reach approximately £12.5m.
In addition, the group is also exploring a formal sale process to explore whether a sale of the Company will provide a more beneficial outcome for stakeholders, although currently there are no discussions with any potential offeror relating to an acquisition.
Rob Pitcher, chief executive officer, said: “The first half of FY24 has seen continued challenges with the cost-of-living crisis disproportionately impacting particularly the discretionary expenditure of our young Revolution brand guests. Revolución de Cuba and Peach have been less impacted as the guest profile is more affluent, and both brands enjoyed very strong festive trading, and Revolución de Cuba, in particular, has shown excellent trading when compared against the wider Bars market.
“We are driven by the imperative to deliver to stakeholders a business which is fit for purpose in today’s environment, better balanced and financed in a way to provide a sustainable long-term future for the Group which, in time, has the opportunity to grow and flourish again.”
