Fri 14th Jun 2024 - Shareholders back Revolution Bars Group restructuring plan and fundraise Shareholders back Revolution Bars Group restructuring plan and fundraise: Shareholders of Revolution Bars Group – the operator of the Revolution, Revolución de Cuba and Peach Pubs brands – have backed the company’s restructuring plan and fundraising. At a general meeting today (Friday), a total of 90.47% of shareholders voted in favour of both the restructuring plan and fundraising. Keith Edelman, non-executive chairman of Revolution Bars Group, said: “The board is grateful for the shareholder support in passing the general meeting resolutions and pleased for our dedicated and loyal people who have continued to provide our guests with excellent hospitality through this uncertain period. We can now move to the next stage of the process to seek the sanction of the restructuring plan, which will put the business on a much stronger footing to be fit for purpose in today’s evolved market.” Last month, the group ended its formal sales process and warned that if the restructuring plan was not backed, a cash injection of £8.1m could be needed by the start of September, and in these circumstances, filing for administration would be “expected”. The group last month set out its proposed restructuring plans, including a £12.5m fundraise and the closure of 18 sites, alongside the launch of a formal sales process. The group plans to use the fundraising proceeds to fund the implementation of the restructuring plan, which will primarily impact the Revolution branded sites and provide additional working capital to the company. The group’s proposed strategic focus for FY25 will include executing the restructuring plan, rationalising its trading estate and protecting the group’s liquidity; continuing the “premiumisation of Peach Pubs’ product and service”; and “continuing the enhancement of Revolución de Cuba’s entertainment and brand proposition”. In FY26, it has proposed recommencing the five-year investment cycle for the group’s bars, with a target return on capital employed (ROCE) of 50% from refurbished sites; recommencing the seven to eight-year investment cycle for the group’s pubs, again with a target ROCE of 50% from refurbished sites; and exploring site acquisition opportunities across the Peach and Revolución de Cuba brands. For FY27, it plans to recommence the expansion of the group’s brands, with a focus on Peach, Founders & Co and Revolución de Cuba. The business previously said that without the additional funding from the fundraising, and without the cost savings delivered through the proposed restructuring plan, it anticipates that the group will face liquidity pressures from the first quarter of FY25 onwards. The fundraising aims to raise up to £10.5m via a firm placing and subscription and up to approximately £2m via a placing and open offer. Cornerstone investments of £9.5m comprise of £3m from serial sector investor Luke Johnson, £3m from Robus SCSP and £3.5m from three key existing shareholders. It is proposed that Johnson will join the board as a non-executive director in the first instance following implementation of the restructuring plan and the fundraising, with a view to him being proposed to take the role of chairman at the company's annual general meeting in 2024. Last month, Revolution Bars Group rejected an acquisition proposal from Nightcap – owner of the Cocktail Club, the Adventure Bar Group, Dirty Martini and the Barrio Familia group of 46 bars – after concluding it was “incapable of being delivered”. That was disputed by Nightcap, which said it would not make an offer for Revolution Bars Group. Revolution Bars Group features in the Propel Turnover & Profits Blue Book, the latest edition of which was sent to Premium Club members today and features 926 companies. Revolution Bars Group’s turnover of £152,551,000 for the year ending 1 July 2023 is the 73rd highest in the database. The Blue Book ranks companies by turnover, profit and profit conversion, listing directors’ earnings for the past five years. Companies can now have an unlimited number of people receive access to Propel Premium for a year for £995 plus VAT – whether they are an operator or a supplier. The single subscription rate is £495 plus VAT for operators and £595 plus VAT for suppliers. Email kai.kirkman@propelinfo.com to upgrade your subscription.