Revel Collective confident despite wider full-year losses

22nd Oct 2024 11:06

(Sharecast News) - Bar and gastropub operator the Revel Collective reported total sales of £149.5m in its preliminary full-year results on Tuesday, down from £152.6m in 2023.

The AIM-traded company said it had completed a major restructuring and fundraising effort, securing £12.5m in gross proceeds in September, positioning the business for future growth.

Operating losses for the year widened to £28.4m for the year ended 29 June, from £15.2m in the prior year, while adjusted EBITDA fell to £13.4m from £17m.

The group also reported a loss before tax of £36.7m, widening from £22.2m in 2023.

Net bank debt rose to £24.4m by year-end, but had since reduced to £12.1m following the fundraising and a £4m debt write-off.

Despite the financial challenges, the company's Peach Pubs brand delivered a strong performance, with like-for-like sales rising by 1.1% and achieving record Christmas sales in December.

The Revolución de Cuba brand also performed well, posting positive like-for-like sales of 3.2% in the first half of 2024.

Meanwhile, the Founders & Co brand saw a 19.6% increase in like-for-like sales during the year, supported by new events and refreshed offerings.

Looking ahead, the company said it was encouraged by early positive bookings for the festive season and the return of students, which was beginning to drive improved trading performance.

The restructuring plan's successful execution, combined with the addition of new leadership, was expected to drive the business forward in 2025, with opportunities for expansion across its brands, including Peach Pubs and Founders & Co.

"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," said chief executive officer Rob Pitcher.

"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 the 2025 financial year, and we see the pubs and Founders & Co as the key areas for future expansion in the group."

Pitcher said he was "confident" with the distraction of the restructuring plan now done, the firm would 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.

"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."

At 1004 BST, shares in the Revel Collective were down 14.86% at 0.75p.

Reporting by Josh White for Sharecast.com.