Earnings release
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RNS Number : 1968U Revel Collective PLC (The) 22 January 2025 This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is disclosed inaccordance with the company's obligations under Article 17 of MAR. The Revel Collective Plc(the "Group") H1 update The Revel Collective plc, a leading operator of premium bars and gastro pubs, trading mainly under the Revolution,Revolución de Cuba and Peach Pubs brands, today provides an update on Christmas and H1 trading and gives guidance on theoutturn for the year ending 28 June 2025 (FY25). Festive trading · Group like-for-like sales for the 4 weeks from 7 December 2024 to 3 January 2025 were +1.6%. · Prebooked revenue, largely Corporate Christmas bookings, achieved record levels over the festive period in ourRevolution and Revolucion De Cuba and was 5.3% ahead of last year. · 32 weekly food and drink sales records were broken across the group during the festive period with the Peach Pubsbrand performing the best of our 3 main brands. FY 25 Outturn While Festive trading was robust, and our pubs have seen a strong H1 performance compared to last year, sales in our barbrands during the early part of the financial year were hampered by the uncertainty caused by the delay to the completion ofthe Revolution Bars Limited Restructuring Plan. Although there has been some gradual improvement in sales in ourRevolution brand, the late night market continues to be challenging, and sales have not yet recovered as quickly as we hadanticipated. Several planned initiatives are in place to boost profitable growth in the second half, as previously outlined as part of ourRestructuring Plan. However, the changes announced in the budget are expected to fully offset these efforts in FY25. Weestimate that the annual profit impact of the Budget announcements on the Group is £4m. Lower sales in H1 and higher costs arising from the Budget, which will come into effect for the final quarter of the financialyear, mean that the Board now expect the IAS 17 EBITDA outcome, driven by the level consumer sentiment, to be in therange of £2.0-4.0m. Net debt at 21 January 2025 is £14.4m (excluding the PIK tranche of £2.3m and excluding lease debt). We currently have headroom on our banking facilities but we will continue to keep discretionary spend and capital investmentunder significant restriction for the rest of this financial year. 22 January 2025 Rob Pitcher, CEO of Revolution Bars Group, said: "The 2024 festive trading period provided us with a fantastic opportunity to showcase what we do best and it waswonderful to see our guests enjoying the parties we hosted. I am particularly pleased with the strong performance in Peachand Founders & Co, which stood out in terms of sales growth. However, the younger guests in our bars continue to face challenges with the high cost of living. Additionally, the negativediscourse surrounding the Restructuring Plan created uncertainty among our guests and team members. This uncertaintypersisted well into FY25, leading to a weaker recovery than we had originally anticipated. We now look forward to a periodwhich will see us implement several new sales initiatives, including launching the new brand proposition for ourRevolution brand, just in time for our target guests to receive the 16.3% (18-20 year olds) increase in National MinimumWage. The newly elected Labour Government's recent budget announcements, especially the reduction in the National Insurancethresholds for Employers, will have a very damaging impact on the Group. These measures are regressive and offer no
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clear pathway for economic growth within the hospitality sector. They also pose risks to the employment market. Westrongly urge the government to reconsider this policy in particular and explore more balanced alternatives. I'd like to thank our teams for all their dedication and hard work in making the Christmas period such a wonderfulexperience for our guests. " Enquiries: The Revel CollectiveRob Pitcher, CEO Danielle Davies, CFO Tel: 0161 330 3876 Cavendish Capital Markets Limited (NOMAD & Broker) Matt Goode Teddy Whiley (Corporate Finance) Tim Redfern (Corporate Broking) Tel: 020 7220 0500 Instinctif (Financial PR) Matt Smallwood / Justine Warren / Augustine Chipungu Tel: 020 7457 2005/ 020 7457 2010 This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com. RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy. END TSTEAAFFASSSEAA