Shares of The Revel Collective, formerly called Revolution Bars Group, fell about 15% after it published results for the 52 weeks ended June 29, 2024, showing its pretax loss widened to £36.7 million from £22.2 million the year before.
Greater Manchester-based Revel, operator of 43 bars and 22 gastro pubs trading predominantly under the Revolution, Revolución de Cuba and Peach Pubs brands, said total revenue fell £3.1 million to £149.5 million.
“Following the successful completion of the Restructuring Plan and Fundraise, with gross receipts of £12.5 million received in September 2024, the group is well positioned for future growth,” said The Revel Collective.
“New non-executive chairman, Luke Johnson, and two new experienced non-executive directors, bring a wealth of experience in the industry to drive the business forwards …
“Current trading has been impacted by the Restructuring Plan and its execution extending into FY25 together with a particularly wet summer.
“More recently, the return of students and positive early bookings for the festive trading period means the Group are pleased to begin seeing improved performance. Net bank debt is currently at £12.1 million following the Fundraise and £4.0 million write-off of gross borrowings.”
The Revel Collective CEO Rob Pitcher said: “Despite the distractions to the bars side of the business, particularly Revolution bars, I am very pleased to have seen strong trade elsewhere in the Group.
“Peach Pubs continues to trade very strongly post-acquisition and enjoyed its best ever festive trading this year. The pubs have seen a strong start to FY25, and we see the pubs and Founders & Co. as the key areas for future expansion in the Group. I am confident with the distraction the Restructuring Plan behind us, we will drive growth across all brands.
“A well-diversified offering through the bars and pubs brands positions us well for the future. In reflection of our more balanced portfolio,, we were excited to also announce the renaming of the Group to The Revel Collective plc.
“We look to the Government as an engine for growth for the UK hospitality industry, with urgent reforms needed to business rates and the apprenticeship levy, as well as recognition of ongoing challenges through minimum wage legislation, which should be supported through reduced VAT for the industry which is undoubtedly over-taxed.
“Our colleagues have faced continued unprecedented challenges and uncertainty in the last year. The attitude and efforts by both those who have left the Group in the last year, as well as our remaining brilliant teams, is unparalleled. I am very excited to see where the new reshaped, resized business can take us.”