The Revel Collective H1 sales fall 22% amid bar brands challenges

The Revel Collective has reported that sales for the 26-week period to 28 December 2024 were 22% lower at £64.2m than in the same period last year, due to “challenging” conditions in bar brands which made recovery “slower than expected”. 

The fall in sales reflects a “significant” reduction of venues – from 88 to 62 – across the 12-month period, together with the delay to, and ongoing distraction of, The Revel Collective’s restructuring plan impacting on the bars for the first half of FY25.  

In the second half of FY24, the group closed a number of sites as part of its restructuring plan with eight closed at the start of January 2024 and the rest later in the second half – meaning that FY24 ended with 77 venues. 

A further 15 bars closed in the first half of FY25, being 14 Revolution bars and one Playhouse, as a result of the successful sanctioning of the restructuring plan.     

The Revel Collective maintains that it now has a “well-balanced” portfolio with the main brands, with plans to expand Peach Pubs and Founders and Co “when the opportunity arises”.                                   

Adjusted EBITDA profits were slightly lower in the first half of FY25 at £3.1m compared with £3.2m in the same period last year, while softer sales and lower operating costs meant that APM3 adjusted EBITDA is in line with the previous year. 

The group also operates a £26m revolving credit facility, and had a net bank debt of £14.7m as of the end of the first half of FY25. As of yesterday (3 March), the group has a net bank debt – excluding PIK loan – of £19.4m. 

Following suppressed trading in the first half of FY25, which was in part caused by delays to the restructuring plan, current trading at The Revel Collective remains softer within its bars segment. 

However, the group’s board remains confident of achieving APM3 adjusted EBITDA in line of £2m to 4m as previously announced in January 2025.

Rob Pitcher, CEO of The Revel Collective, said: “The first half of FY25 experienced a number of challenges caused mainly by the impact of consumer confidence on the late night bars market, and the delay to the Restructuring Plan timeline, so I was very pleased to see a robust 2024 festive trading period. I am particularly pleased with the strong performance in Peach Pubs and Founders and Co.

“With the impending Budget measures due in April, we are cognisant of the significant and damaging impact this will have on the group and wider industry and economy. The hospitality industry can be a powerhouse for economic growth in the UK when allowed to do what it does best, unimpeded by unrealistic government cost increases. It’s a real disappointment that Chancellor Reeves doesn’t seem to understand the impact of her actions.”

He added: “Our immediate priority is both the mitigation of this cost impact and continued driving of sales, particularly in the bar brands. We strongly urge the government to reconsider the National Insurance changes and explore more balanced alternatives. I give my thanks to all our teams for their continued dedication and hard work as we navigate these challenging times.”