Revolution Bars owner takes glass-half-full approach after restructuring ‘distraction’

Revolution Bars owner Revel Collective is doing its best to take a glass-half-full approach despite revealing pre-tax losses of £36.7m.

The hospitality group has begun a restructuring which saw it bank £12.5m from a fundraising, appoint industry heavyweight Luke Johnson as non-executive chair, and rebrand the group in recent weeks.

Revel Collective chief executive Rob Pitcher

Earlier this year it had warned administration was a possibility if shareholders hadn’t approved its restructuring plan, which emerged after a mooted takeover approach from rival operator Nightcap was dismissed as “incapable of being delivered”.

Rob Pitcher, Revel Collective’s chief executive, said: “I am confident with the distraction the restructuring plan behind us, we will drive growth across all brands.

“I am very excited to see where the new reshaped, resized business can take us.”

Revenue was down slightly, by 2%, to £149.5m in the year to June 29. The group closed 13 bars during the year but benefitted from the first full year of trading from Peach Pubs.

While the group’s other brands, Revolución de Cuba and Founders & Co, increased sales, the core estate of Revolution bars struggled dragging the overall like-for-like sales down 4.3%

“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,” Pitcher said.

“A well-diversified offering through the bars and pubs brands positions us well for the future.”

He called on the Government to support the hospitality industry, with the sector among those most keenly awaiting Rachel Reeves’ first Budget next week.

He said: “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.”