22nd Oct 2024 12:25
(Alliance News) - Revel Collective PLC on Tuesday said its annual loss widened during its 2024 financial year, due to the effects of its now-completed restructuring plan.
The Manchester, England-based operator of 65 pubs and bars under the Revolucion de Cuba, Revolution and Peach Pub brands recently changed its name from Revolution Bars Group.
Its pretax loss widened to GBP36.7 million for the financial year that ended June 29 from GBP22.2 million the year before.
Revenue fell 2.0% to GBP149.5 million from GBP152.6 million, whilst exceptional items costs increased by 54% to GBP31.1 million from GBP20.2 million.
Revel said current trading has been impacted by a "particularly wet summer" in the UK, continued cost-of living impacts on its younger customers, as well as the effects of its restructuring plan for Revolution Bars Ltd, which it launched in August amid "constraints of consumer demand, rising costs and a permanent shift in trends".
The restructuring plan removed loss-making sites, reduced rents to allow the market to return to more normal levels, and reduced the company's bank debt. It expects the execution of the plan to extend into financial 2025.
Revel Collective anticipates a return to normal refurbishment plans and estate expansion from financial 2026.
Chief Executive Officer Rob Pitcher said: "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.
"Peach Pubs continues to trade very strongly post-acquisition and enjoyed its best ever festive trading this year. The pubs have seen a strong start to financial 2025, and we see the pubs and Founders & Co as the key areas for future expansion in the group. I am confident, with the distraction of the restructuring plan behind us, we will drive growth across all brands.
"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."
Shares in Revel Collective were down 15% at 0.75 pence each in London on Tuesday afternoon.
By Emily Parsons, Alliance News reporter
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