Restructuring plan at Revolution bar owner was two months late
The Revel Collective, the newly branded owner of the Revolution bar chain, suffered delays to its restructuring plan which led to prolonged uncertainty for both its Revolution and Revolución de Cuba businesses.
Preliminary unaudited results for the 26 weeks ending 28 December 2024 show the Ashton-under-Lyne headquartered bar operator took £64.2 m in takings, 22% lower than the same half last year, across its Revolution, Revolución de Cuba and Peach Pubs brands, albeit on the back of the closure of 26 premises.
Overall the operator of 40 premium bars and 22 gastro pubs said it made pre-tax profit of £30m in the period, but prefers the alternative measure of EBITDA, which it said was £6.1m.
Profit guidance for the year will be within the £2m to £4m range for the year.
The accompanying statement hinted that underperforming bars could be converted to Peach Pubs, or an expansion of the food court model it currently operates at one site in Swansea, Founders & Co.
Luke Johnson
New chairman Luke Johnson, the former Pizza Express owner, said: “With robust Christmas trading, the Group has very much seen a continued strong performance from Peach and Founders & Co., with challenged sales within both bar brands. The delayed timetable of the Restructuring Plan caused more disruption and caution within the bars than was initially anticipated, and, coupled with the continued impact of negative consumer confidence, this has led to a slower sales recovery in our bars. This is clearly very disappointing, and management’s focus is very much on the return to sales and profitable growth across all areas of the business.”
In the accompanying statement the company made the surprising admission that the Revolución de Cuba brand was “impacted by the negative commentary surrounding the Restructuring Plan” and “therefore experienced softer sales in FY25 H1”.
