The Revel Collective FY losses widen to £36.7m

The Revel Collective, former Revolution Bars Group, has seen its loss before tax widen to £36.7m in its preliminary results for the year ended on 29 June. 

The group said that the result was mainly due to non-cash exceptional impairment charges from its restructuring plan.

Despite strong festive trading and the annualisation of the acquisition of Peach Pubs, the closure of 13 loss-making bars and softer performance in the Revolution brand affected sales, which were 2% lower than the previous year at £149.5m. 

The underlying result was £3.6m lower, at a profit of £3m as a result of the ongoing challenges to the underlying cost base. Adjusted EBITDA  was a profit of £13.4m.

In April, the group announced the Restructuring Plan and Fundraise which was successfully sanctioned in August 2024 and the £12.5m gross proceeds raised were received in September 2024. The uncertainty surrounding the Plan, coupled with continued cost-of-living impacts on the group’s younger guests, resulted in a like-for-like sales drop of 4.3% in the full year 2024.

Peach Pubs, in its first full year in the group, 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 the year with positive LFL sales of 1.1%. 

The Revolución de Cuba brand performed “ahead of other bar brands”, and enjoyed positive LFL sales of 3.2% in the first half of FY24, with the second half impacted by internal distractions. Meanwhile Founders and Co delivered “very strong” trade, achieving LFL sales of 19.6% during the year.

The group said that current trading has been impacted by the Restructuring Plan and its execution extending into FY25 together with a particularly wet summer. The board remains focused on driving sales performance and reigniting the business to “allow it to flourish” now that the Restructuring Plan is complete, with a return to normal refurbishment plans and estate expansion expected from FY26.

Rob Pitcher, chief executive officer, said: “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 and 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.

 “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 plc.” 

Pitcher added: “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.”