Revolution raises a glass to float plan
THE company behind cocktail bar chain Revolution is to make a return to the stock market, with a clear plan to grow.
Based in Ashton-under-Lyne Revolution Bars – previously called Inventive Leisure – is going to join the full list of the market in March, just over nine years after it was taken private by private equity firm Alchemy in a £42.5m deal.
Ahead of its IPO, which is led by Numis Securities, the company has appointed former Arsenal FC managing director Keith Edelman as its chairman.
Revolution currently trades from 58 sites. The majority are operated as Revolution vodka bars, while there are five Revolución de Cuba bars, including in Liverpool and Manchester.
While its heritage was in the student sector, the group has invested heavily in the last 18 months to move upmarket and now places considerable emphasis on freshly-prepared food. Food sales now account for 25% of sales before 10pm.
The group delivered a strong financial performance in the year ended 30 June 2014, with its current bar operations having reported revenue of £108.7m (2013: £104.5m) and adjusted EBITDA of £13.2m (2013: £10.9m.)
Chief executive Mark McQuater, a former investment banker turned leisure sector operator said: “Revolution Bars Group is one of the leading players in the UK’s premium drinking out and casual dining out markets, with a well-invested trading estate of 58 bars that is generating market-leading returns in this sector.
“Both Revolution and Revolución de Cuba are premium brands which target a growing market where we believe a premium offering is in demand. We believe that a successful listing will complement the group’s growth strategy and help support our roll-out plans for the group’s branded bars in the UK.”
New chairman Keith Edelman added: “I am delighted to be joining the board of Revolution Bars Group as chairman and I welcome Michael Shallow as an independent non-executive director. I believe the group’s brands, the markets in which it operates and the experience of the board in the UK retail and leisure sectors make it well placed to fulfil its growth ambitions.”
The company said it would look at acquisitions if the right opportunities arise. Its believes in time there is opportunity to grow the estate to 140, with 100 Revolution bars and 40 Revolución de Cubas, its aspiration.
It is currently targeting a roll-out of up to five new bars per yearby the end of the 2017 financial year, with a likely initial focus on Revolución de Cuba bars.
The pricing of the IPO has not yet been revealed, though the company said it expects Alchemy to sell most of its shares in the group.
