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Tue 22nd Oct 2024 - The Revel Collective well positioned for future growth after receiving £12.5m, reports ‘improved’ recent trading |
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The Revel Collective well positioned for future growth after receiving £12.5m from restructuring plan and fundraise, reports ‘improved’ recent trading: The Revel Collective – the operator of 65 venues trading predominantly under the Revolution, Revolución de Cuba and Peach Pubs brands and formerly known as Revolution Bars Group – has said it is well positioned for future growth after receiving £12.5m from its restructuring plan and fundraise and reported “improved” recent trading. The group, which changed its name to The Revel Collective earlier this month, said following the successful completion of its restructuring plan and fundraise, gross receipts of £12.5m have been received, meaning “the group is well positioned for future growth”. It said new non-executive chairman Luke Johnson, and two new experienced non-executive directors, will “bring a wealth of experience in the industry to drive the business forwards”. It said following the restructure, the group’s portfolio “has been reshaped and resized for current industry conditions”. The group said current trading has been “impacted by the restructuring plan and its execution extending into FY25, together with a particularly wet summer”. It added: “More recently, the return of students and positive early bookings for the festive trading period means the group are pleased to begin seeing improved performance. Net bank debt is currently at £12.1m following the fundraise and £4.0m write-off of gross borrowings.” It comes as the group announced its preliminary results for the year ended 29 June 2024. Total sales were down from £152.6m in 2023 to £149.5m, with adjusted Ebitda down from £17m to £13.4m. The group’s pre-tax loss widened from £22.2m to £36.7m, while its net bank debt grew from £21.6m to £24.4m at year-end. “Despite market conditions, total revenue for the year was down just £3.1 million, reflecting the closure of 13 bars in FY24, offset by the annualisation and strong performance of Peach,” it said. “The uncertainty surrounding the plan, coupled with continued cost-of-living impacts on our younger guests, resulted in like-for-like sales of -4.3% in the full year FY24. Peach Pubs, in its first full year in the group, enjoyed strong trade throughout FY24. Peach delivered its best ever Christmas trading period, with three consecutive record weeks during December, achieving weekly sales of over £1m for the first time. It also ended FY24 with positive like-for-like sales of +1.1%. We opened the first Peach Pub post-acquisition, and 22nd pub in total, The Three Horseshoes, in November 2023. The group continues to review expansion opportunities for this brand. The Revolución de Cuba brand performed well and ahead of other bar brands, and enjoyed positive like-for-like sales of +3.2% in the first half of FY24, with the second half impacted by internal distractions. Corporate bookings, as we look forward to festive trading later this year, are strong and we anticipate a positive festive trading period. Revolution concluded its restructuring plan in August 2024, and we now look forward to driving performance of the brand with the resized estate. Founders & Co enjoyed very strong trade, achieving like-for-like sales of +19.6% in FY24 as the site goes from strength to strength. New events continue to be held, and the traders are regularly refreshed, ensuring there is always something new for guests. There is an excellent opportunity to expand this brand when funding allows.” Chief executive Rob Pitcher added: “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 FY25, and we see the pubs and Founders & Co as the key areas for future expansion in the group. I am confident with the distraction the restructuring plan behind us, we will drive growth across all brands. A well-diversified offering through the bars and pubs brands positions us well for the future. In reflection of our more balanced portfolio, we were excited to also announce the renaming of the group to The Revel Collective. 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. Our colleagues have faced continued unprecedented challenges and uncertainty in the last year. The attitude and efforts by both those who have left the group in the last year, as well as our remaining brilliant teams, is unparalleled. I am very excited to see where the new reshaped, resized business can take us.” The Revel Collective features in the Premium Club Turnover & Profits Blue Book, which is available exclusively to Premium Club members and features 994 companies. Its turnover of £149.5m for the year ended 29 June 2024 is the 76th highest in the database. 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.
Next Who’s Who of UK Hospitality to be released on Friday featuring more than 236,000 words of content: The next Who’s Who of UK Hospitality will feature more than 236,000 words of content when it is released to Premium Club members on Friday (25 October), at midday. The database now features 873 companies, and this month’s edition includes 20 new additions and 101 updated entries. The companies, listed in alphabetical order, will have their most recent results reported as well as broader information around Ebitda, plans and trading style available. The database merges Companies House information, interviews and other public information to provide an easy to reference and exhaustive guide to the sector. Premium Club members also receive access to five other databases: the Multi-Site Database, the New Openings Database, the Turnover & Profits Blue Book, the UK Food and Beverage Franchisor Database and the UK Food and Beverage Franchisee Database. All Premium Clubs members will be offered a 20% discount on tickets to Propel paid-for events including Restaurant Marketer and Innovator (two days in January 2025) and Excellence in Pub Retail (May 2025). Operators that are Premium Club members are also able to send up to four members of staff to each of our four Multi-Club Conferences for free. Premium Club members receive their daily Propel Info newsletter 11 hours earlier than standard subscribers, at 7pm the evening before. They also receive videos of presentations at eight Propel conference events two weeks after they are held. This represents around 100 videos of industry insight over the course of the year. Premium Club members will be sent a dedicated monthly newsletter that will highlight key updates in the sector and direct subscribers to all the vital content their membership offers. Premium Club members also receive exclusive opinion columns every Friday at 5pm, which include the thoughts of Propel group editor Mark Wingett and a host of industry leaders from across the sector. A Premium Club subscription costs an annual sum of £495 plus VAT for operators and £595 plus VAT for suppliers. Companies can now have an unlimited number of people receive access to Premium Club for a year for £995 plus VAT – whether they are an operator or supplier. Email kai.kirkman@propelinfo.com today to sign up.
Ten pin bowling venues ‘have never been so full’ but operators must be wary of oversaturation: Ten pin bowling venues “have never been so full”, the general secretary of UK Tenpin Bowling Operators has said. Gary Brimble was speaking as Hollywood Bowl, the UK’s biggest ten-pin operator, this week reported record revenues of £230m after opening new venues to capitalise on rising demand. Ten Entertainment, which runs the Tenpin brand, has also been growing fast, with its most recent accounts showing sales up almost 40% compared with pre-pandemic levels. There are now a record 5,700 ten-pin lanes in the UK, and Brimble said that the pastime’s popularity had been growing for more than a decade. He told The Times his members’ venues “have never been so full” and believes that the secret to bowling’s success is the wide appeal across age and social groups. He said: “It’s an activity that you can do as a family, group of friends, birthday party, staff party and team-bonding exercise. It’s fun, safe and can be enjoyed by beginners as well as enthusiastic sports bowlers. There is plenty of scope for further growth in the UK market. However, there is a risk of oversaturation in some areas, such as Manchester, where too many venues dilute the footfall and may lead to some venues becoming unsustainable.”
Changes to employment rights could cause ‘crisis’ for small businesses: Small businesses should be spared from some of the proposed changes to employment rights, the Conservatives have suggested, as Whitehall’s own assessment of the legislation shows they will be hit with a higher cost burden. Shadow business secretary Kevin Hollinrake argued the Employment Rights Bill would create “an existential crisis of a magnitude not seen since the pandemic” for small businesses, reports The Independent. Policies such as day-one protections from unfair dismissals and banning zero-hours contracts are “likely to have a disproportionate cost to small and micro businesses”, according to economic analysis published by the Department for Business and Trade. The impact assessment shows that changes to paternity leave will result in small businesses bearing 35% of the costs, while only accounting for 29% of employees. It also notes that 74% of small businesses employ at least one worker with a flexible contract, meaning that many will be hit with an “administrative burden” following the changes. Proposed changes to statutory sick pay of removing the lower earnings limit and waiting period are also expected to have “a disproportionate cost to small and micro businesses”. Hollinrake told the Commons: “The question I ask myself now is when this legislation is in place, would I start that small business again today? Sadly, the answer would probably be no, certainly not one that employed any people. That is because the very high costs of these measures will be borne by all companies, which will then be passed on in the form of higher prices, reduced wages and lost jobs. They will fall most heavily on small businesses, for whom these measures could be existential.” Deputy prime minister Angela Rayner responded: “The impact assessment also makes clear that it would have a positive impact on growth and more than 10 million workers will benefit from Labour’s plan in every corner of this country. And the money in their pockets will go back into the economy and will support businesses, in particular, those on the high street.”
Music studio concept with bar and events space signs for fourth London site: A music studio concept with a bar and events space has signed for its fourth London site. Qube, described as the world’s first studio membership for music makers and content creators, has secured a site at Elephant Park in south London. As well as high end studios for state-of-the-art music production or content creation, the space will have a co-working area that transforms into a bar and DJ booth. The 10,500 square-foot space will also feature a separate event space and DJ studio overlooking the bar, which will be available for private parties of up to 20 people. Qube co-founder Amin Hamzianpour said: “We’re thrilled to finally bring Qube to south London’s incredibly talented and diverse creative community. Our ambition is for Qube Elephant to be a launchpad for thousands of forward-thinking creators over the coming decades, and most importantly, a sanctuary for creative expression.” Savills, CF Commercial, and Shelley Sandzer represented landlords Lendlease.
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