Image Source: Pub & Bar
Revel Collective PLC, formerly Revolution Bars Group, has reaffirmed its commitment to rigorous cash and debt management as it navigates a post-restructuring landscape. The group, which operates 65 bars and pubs under brands like Revolution, Revolución de Cuba, Peach Pubs, and Founders & Co., is focused on stabilizing its financial foundation following a turbulent FY24 marked by venue closures, cost pressures, and strategic pivots.
Key Financial Highlights
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FY24 revenue declined 2% to £149.5 million due to the closure of 13 loss-making bars and softer like-for-like sales
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Adjusted EBITDA (IAS 17) dropped to £3.0 million from £6.6 million in FY23, reflecting macroeconomic headwinds
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Net bank debt reduced from £24.4 million to £12.1 million by October 2024, aided by a £12.5 million fundraise and £4.0 million debt write-off
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Operating loss widened to £28.4 million under IFRS 16, driven by exceptional restructuring costs
Restructuring Plan Execution and Portfolio Optimization
The group’s April 2024 restructuring plan aimed to streamline operations and exit underperforming sites. Key developments include:
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Closure of 22 Revolution bars, 2 Revolución de Cuba venues, and 2 Playhouse sites
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Annualized rent reductions of £0.4 million achieved through lease renegotiations
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The estate now comprises 62 venues, down from 89 at FY23-end, with a stronger focus on profitable formats
The reshaped portfolio emphasizes Peach Pubs and Founders & Co., which delivered robust EBITDA contributions and are earmarked for future expansion.
Brand Performance and Strategic Focus
Despite challenges, several brands showed resilience and growth potential:
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Peach Pubs generated £4.6 million in venue EBITDA and achieved positive like-for-like sales of +1.1%
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Founders & Co. posted a stellar +19.6% LFL sales growth, driven by refreshed events and trader rotations
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Revolución de Cuba outperformed other bar formats in H1 FY24 with +3.2% LFL sales, though H2 was impacted by internal restructuring distractions
Revolution, the group’s flagship brand, remains under pressure but is expected to stabilize post-restructuring.
Operational Efficiency and Liquidity Management
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Revel Collective has taken decisive steps to improve liquidity and operational efficiency:
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Capex was tightly controlled, with only £2.2 million spent on the existing estate and one new pub opening
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Lease surrender premiums of £1.1 million were received, offsetting exit costs
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Profitability-based covenants have been waived until July 2026, providing breathing room for recovery
The group’s cash flow position has improved significantly, with working capital stabilized and creditor stretches unwound.
Leadership and Governance Enhancements
The board has undergone a refresh to align with the group’s strategic direction:
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Luke Johnson appointed Non-Executive Chairman in September 2024, bringing deep hospitality sector experience
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Gavin George and Charlie McVeigh joined as Non-Executive Directors in October 2024, adding operational and investment expertise
This leadership overhaul is expected to drive disciplined execution and unlock growth opportunities across the portfolio.
Outlook and Strategic Priorities
Looking ahead, Revel Collective is focused on:
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Returning to a normal refurbishment cycle by FY26, with targeted expansion in Peach Pubs and Founders & Co.
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Enhancing profitability through cost control, pricing optimization, and brand differentiation
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Advocating for industry reforms, including business rates relief and VAT adjustments, to support long-term sustainability
Despite a challenging FY24, the group’s diversified brand mix and improved financial footing position it for a measured recovery and renewed growth.
Source: London Stock Exchange – July 29, 2025 Investegate – July 29, 2025 MarketScreener – July 29, 2025 Revel Collective Investor Presentation – July 29, 2025
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