City round-up: Revolution Bars Group; EG; Pebble Group; Together; Assura
Revolution Bars Group, the Ashton-under-Lyne-based operator of 65 premium bars and gastro pubs, has confirmed the appointment of entrepreneur, Luke Johnson, as its non-executive chairman.
It follows the retirement of Keith Edelman, who has been chairman since February 16, 2015.
Earlier this month the group completed its fund raising and restructuring plan which involved directors subscribing for new shares in the business, but none of them representing a stake over one per cent.
The restructure was also facilitated by a £12.5m placing with new shareholders including Johnson, 62, turnaround investor Rebus and three existing shareholders.
Johnson is a well known entrepreneur and investor recognised for his track record in the hospitality sector.
He established himself in the sector as chairman of, and significant investor in, PizzaExpress during its rapid expansion in the 1990s. He has since been involved in numerous successful ventures, including his role at and investment in Gail’s bakeries amongst many others.
However, he was also chairman of Patisserie Valerie when it imploded in 2019 as “a direct result of a significant fraud”.
He has chaired or founded various companies, including the private equity firm Risk Capital Partners, which has invested in a range of industries.
Asa result of the restructuring he holds 300,000,000 ordinary shares of 0.1 pence each in Revolution Bars Group, representing 20% of the company’s ordinary shares.
CEO, Rob Pitcher, said: “Keith’s strong leadership has been instrumental in steering the group since 2015.
“Through IPO, the pandemic, unsolicited offers and the most recent fundraise and restructuring plan. As he steps down, we express our gratitude for his support and vision, which have left an enduring footprint on the company. We wish him all the best in his future endeavours.”
He added: “We are excited to be working with Luke who is vastly experienced in the hospitality sector and brings a wealth of knowledge to enable the next phase of the group’s development.”
Keith Edelman said: “After over nine years as chairman of the group, the time has come for me to step down. I leave knowing the company is now in a stronger position and fit for purpose in today’s marketplace.
“I extend my heartfelt thanks to the board, the management team, and all our dedicated colleagues for their support and commitment over the years. I am pleased that Luke has agreed to now become chairman and I firmly believe his outstanding experience within the hospitality sector will be instrumental in guiding the group in the future and I look forward to watching Revolution Bars Group thrive in the years ahead.”
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Mohsin Issa
Blackburn-based EG Group has issued a trading update for the second quarter of 2024, representing the three months to June 30, 2024.
Mohsin Issa CBE, co-founder and CEO of EG Group, commented: “EG Group delivered a strong performance in Q2 – with underlying EBITDA increasing by 12%, powered by a stand-out performance in the USA and earnings growth in Europe.
“In the USA, we continued to deliver on our strategic growth initiatives, designed to drive an improved organic performance. These include expanded dispensed beverage initiatives which – alongside improved margins in the Grocery & Merchandise segment – helped to grow EBITDA in the region by more than 25%. Meanwhile, strong fuel performance in Germany led to a 10% increase in underlying Europe EBITDA.
“The Group also made good strategic progress across the quarter by continuing to strengthen its balance sheet. The sale of the Group’s 216 KFC franchise restaurants in the UK and Ireland completed on April 29, and the Group remains on track to complete the sale of the remaining UK forecourt business by Q4 2024. Proceeds from these transactions will be used to repay debt.
“This excellent quarterly performance is in no small part due to the hard work of EG colleagues globally – and I would like to thank them sincerely for all their hard work and efforts, as we continue to deliver against our strategy.”
The Group grew underlying EBITDA by 12% to $282m in Q2 2024, driven by growth in the USA and Europe. Group gross profit increased 5% on a LFL basis, boosted by strong fuel and Grocery & Merchandise performances.
Grocery and Merchandise gross margin grew by 2.4% and gross profit increased by 6% to $336m, driven by coffee and dispensed beverage initiatives in the USA.
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Anne de Kerckhove
Pebble Group, the Trafford Park-based corporate promotions specialist, said it has made “strong operational progress” during its first six months, to June 30, 2024, in its results announcement today.
The group saw revenues fall four per cent to £60.8m, and pre-tax profits reduce by six per cent to £2.9m. Net cash rose by £700,000 to £4.9m.
It said its customer retention “remains excellent” across the group as its services continue to resonate well with customers, underpinning growth opportunities.
The balance sheet remains strong with cash generated funding the group’s capital investment to support its growth strategy while continuing to increase shareholder returns
On September 6, 2024, £0.8m of up to £5m has been returned to shareholders under the Share Buyback Programme launched in May 2024, and the group grew its dividend paid in in HY 24 by 100% to £2m (HY 23: £1m).
The board said it expects full year results for 2024 to deliver on its market expectations.
It also announced the appointment of Anne de Kerckhove as non-executive chair, bringing significant experience and further strengthening the board’s technology expertise following the appointment of non-executive director, David Moss, in June 2023.
Chief executive, Chris Lee, said: “We expect our full year performance to be in line with market expectations and have made strong operational progress in the period. The group’s robust financial profile and market leading businesses leave us well placed to gain market share in the circa $50bn global promotional products market.
“Anne’s significant experience will further strengthen the board’s expertise and be particularly valuable as we push to deliver Facilisgroup’s technology and product innovation strategy.”
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Mike McTighe
Cheadle Hulme-based specialist lender, Together Financial Services, has announced the successful pricing of its £445m 1st charge only residential mortgage backed securitisation (RMBS), Together Asset Backed Securitisation 2024 – 1ST2 PLC (TABS12).
It involves a £445m 1st charge only RMBS, 1.08% weighted average cost of placed notes, 95% advance rate, with 89.5% of issued notes expected to be rated AAA(sf) by S&P and AAA(sf) by Fitch.
Mike McTighe, chairman of Together, said this is the group’s third RMBS this year as it continues to support more residential owner occupier and buy-to-let customers in realising their ambitions.
Gary Beckett, Group MD and chief treasury officer, said: “Since the start of this calendar year, we have successfully raised or refinanced over £2.2bn across six transactions. As we continue to strengthen and diversify our funding, this highlights the strength of our business model, quality of our loan book and strong ongoing support from our investors.”
TABS12 is supported by a portfolio of 1st charge owner occupied and buy-to-let loans secured against residential property in England, Scotland and Wales and refinances assets forming part of the Group’s AA rated £1.25bn Charles Street facility (CABS) and the group’s senior secured notes.
The new facility complements the group’s existing seven public residential and four commercial real estate MBS, six private securitisation facilities, senior secured notes and banking syndicate facility (RCF).
Lloyds acted as Arrangers and Joint Lead Managers accompanied by Natixis and Santander as Joint Lead Managers.
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Jonathan Murphy, Assura CEO
Altrincham-based healthcare property group, Assura, has appointed Steven Noble to the newly created role of Chief Investment Officer to support the business’s short and long term growth strategy.
He joins the business effective immediately and will be responsible for implementing Assura’s investment strategy across all healthcare markets, including delivery of capital recycling initiatives.
He was most recently Chief Investment Officer at Atrato Group, the investment adviser to Atrato Onsite Energy (ROOF) and Supermarket Income REIT (SUPR), where he negotiated and executed more than £2bn of property transactions and played an important role in taking SUPR from IPO to the FTSE250.
Prior roles include nine years at Lloyds in origination and risk management with a focus on commercial real estate and KPMG where he qualified as a Chartered Accountant.
Assura CEO, Jonathan Murphy, said: “Steven’s appointment to the newly created role of Chief Investment Officer is an important strategic step for Assura to support our ambitious growth plans.
“The UK healthcare crisis continues to worsen with an immense need for improved access to healthcare services across the country. These factors are driving demand for infrastructure across an increasingly diverse range of healthcare markets, to which Assura is best placed to respond owning to our market position, sector expertise and capabilities and our strong corporate culture.”
He added: “Steven’s skills and expertise will complement those already within the Executive Committee to deliver against this demand and our long term growth strategy.”
Steven Noble said: “The business’s recent acquisition of 14 private hospitals and its JV with USS are a clear indication of the group’s ambition and I am incredibly excited to be part of Assura’s next stage of growth.
“I look forward to working as part of an exceptionally skilled and experienced team at the UK’s leading listed healthcare property investor.”
