Revel Collective results show reliance on pubs

The pub division of The Revel Collective, the operator formerly known as Revolution Bars Group, has once again proved the most prosperous, as the business reveals its interim results for the 26 weeks ended 28 December 2024. 

During the period, the operator of 40 bars and 22 gastropubs saw a strong performance from its Peach Pubs and Founders & Co businesses.

However, trading in its bars continued to be challenging, which the group says is due to the reduced consumer confidence currently impacting the UK nighttime economy.

It also highlights that its Restructuring Plan from Revolution Bars Limited completed two months later than originally planned, leading to prolonged uncertainty for both its Revolution and Revolución de Cuba offers. 

"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," says Rob Pitcher, CEO of The Revel Collective. "I am particularly pleased with the strong performance in Peach Pubs and Founders & Co. and excited to see where these brands can take us in the future. 

"With the impending Budget measures due in April, in particular the regressive reduction in the National Insurance threshold, we are cognisant of the significant and damaging impact this will have on the group and wider industry and economy. 

"Our immediate priority is both the mitigation of this cost impact and continued driving of sales, particularly in the bars brands. We strongly urge the government to reconsider the National Insurance changes and explore more balanced alternatives."

Breaking down the numbers

During the half year, pre-tax profit (IFRS16) was £30.1m, compared to £3.1m in 2024, while pre-tax loss (IAS17) increased from £2.1m to £3m. Adjusted EBITDA (IFRS16) was down from £8.9m to £6.1m, while adjusted EBITDA (IAS17) reduced from £3.2m to £3.1m.

The Revel Collective saw a statutory profit before tax of £30.1m, which it says was "significantly impacted by non-cash gains from the disposal of leases under the Restructuring Plan". 

It describes its festive trading as "robust". The group experienced positive like-for-like sales during the key four-week festive trading period of +1.6%, with record levels of pre-booked corporate bookings in its bar brands of +5.3% on last year. 

Current trading at The Revel Collective continues to see softer sales which it attributes to subdued consumer confidence.

"This, together with changes announced in the Budget and due from April 2025, are expected to offset initiatives implemented in FY25," the business says. "We therefore expect to achieve Alternative Performance Measures adjusted EBITDA of £2 to £4, as previously announced. Further cost savings have been identified across the group to support FY26 onwards. Net bank debt (excluding PIK loan) is £19.4m at 3 March 2025." 

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