The operator of 40 bars and 22 gastropubs, trading predominantly under the Revolution, Revolución de Cuba and Peach Pubs brands, reported sales of £64.2m in its unaudited interim results for the 26 weeks ended 28 December 2024 while sales hit £82.3m in the same period a year before.
However, The Revel Collective’s (TRC) operating profit rose to £30.5m from £7.2m and its profit before tax reached £30.1m (£3.1m H1 FY24) while adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) dipped to £6.1m versus £8.9m in FY24.
H1 FY25 saw the completion of the business’s restructuring plan in September 2024, which TRC said has put the group in a “far stronger” position going forward. There were also strong performances from Peach Pubs – which was the best performing of its three main brands – and Founders & Co.
However, trading in the bars “continued to be challenging due to the reduced consumer confidence currently impacting the UK night-time economy”.
Cost-saving measures
It added the restructuring plan in Revolution Bars Limited completed, two months later than originally planned, leading to prolonged uncertainty for both Revolution and Revolución de Cuba.
TRC said it had been working to counter this through evolution of the bar brands and propositions, and through the execution of robust efficiency and cost-saving measures.
There were record levels of pre-booked corporate bookings in its bar brands during the festive trading period.
TRC added there are opportunities for conversion of existing portfolio properties into Peach Pubs and Founders & Co sites.
TRC CEO Rob Pitcher 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.
Reconsider NI changes
“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.
“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.
“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.”
