and Accounts
Revolution Bars Group plc Annual Report and Accounts 2020 | Revolución de Cuba Aberdeen |
premium
BARS...
FINANCIAL HIGHLIGHTS
REVENUE | GROSS MARGIN | |||||||||||||||||||||
FY £110.1m | FY £151.4m | FY £83.5m | FY £114.8m | |||||||||||||||||||
H1 £81.2m | H1 £78.5m | H1 £61.8m | H1 £59.5m | |||||||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||||||||
£110.1M | £83.5M | |||||||||||||||||||||
ADJUSTED EBITDA* | ADJUSTED (L)/PBT* | |||||||||||||||||||||
FY £3.0m | ||||||||||||||||||||||
FY £9.8m | FY £11.1m | FY (£9.8m) | ||||||||||||||||||||
H1 £2.9m | H1 £2.9m | |||||||||||||||||||||
H1 £12.8m | H1 £6.9m | |||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||||||||
£9.8M(£9.8M)
- Adjusted performance measures exclude exceptional items, share-based payment (credits)/charges and bar opening costs (see reconciliation table on page 22 of the Financial Review).
The Group has adopted IFRS 16 in the year which has given rise to a number of adjustments to profit measures impacting FY20 reported numbers only; the comparatives have not been restated as permitted by the transition provisions of IFRS 16.
All bars were subject to the UK-wide Government enforced lockdown for the last 14 weeks of the reporting period.
CONTENTS
- At a Glance
- Investment Case
- COVID-19:Our Response
- Business Model
- Chief Executive's Review
- Strategic Framework
- Strategy in Action
- Risk Report
- Financial Review
- Section 172(1) Statement
26 Operating Responsibly for our Stakeholders
GOVERNANCE
34 | Board of Directors |
36 | Senior Management |
37 | Chairman's Introduction |
Revolution Bars Group plc Annual Report and Accounts 2020
... operating two market-leading brands, "Revolution" and "Revolución de Cuba". We have a strong national presence across the UK but with significant opportunities for further expansion. We currently trade from 67 bars located predominantly in town or city centre high streets.
Both brands focus on a premium drinks range and a quality food offering typically trading from late morning through into the late evening.
PURPOSEVALUES
1
Overview Company
Report Strategic
38 | Corporate Governance Report |
42 | Board Activity |
44 | Nomination Committee Report |
46 | Audit Committee Report |
50 | Directors' Remuneration Report |
58 | Directors' Report |
63 | Directors' Responsibility Statement |
We create fun and memorable experiences with our teams and guests.
Fun
It's at the heart of what we do, it's who we are. Have fun, be fun and create fun.
Ambition
Report Governance
FINANCIAL STATEMENTS
66 Independent Auditors' Report
74 | Consolidated Statement |
Always striving to be the best version of ourselves.
VISIONIntegrity
of Profit or Loss and Other | |
Comprehensive Income | |
75 | Consolidated Statement |
of Financial Position | |
76 | Consolidated Statement |
of Changes in Equity | |
77 | Consolidated Statement |
of Cash Flow | |
78 | Notes to the Consolidated |
Financial Information |
- Company Statement of Financial Position
- Company Statement of Changes in Equity
- Company statement of Cash Flow
- Notes to the Company Financial Information
- Glossary
- Corporate Information
The place where everyone wants to be.
67VENUES ACROSS THE UK
Just doing the right thing, because it's the right thing to do!
Recognition
Creatively rewarding and recognising the achievements of all our people.
Statements Financial
2 Revolution Bars Group plc Annual Report and Accounts 2020
CHAIRMAN'S
Statement
I am pleased to report that prior to the COVID driven enforced closure of our estate, our business continued to make good progress, achieving improved performance in the first half of the financial period and into the early weeks of 2020. The business benefitted from our strategic priorities of investing in our existing space to improve our underlying like-for-like* sales performance, redefining and rejuvenating the Revolution brand,
and reducing bank debt.
However, the COVID-19 pandemic ('COVID') severely impacted our reported performance for the full FY20 period following the UK Government's enforced closure of all UK pubs, bars and restaurants from 20 March 2020 which meant we were unable to trade for the final 14 weeks.
Our senior management team has shown exceptional leadership and resilience in the face of the most extreme circumstances and taken all appropriate actions to ensure that our bars could reopen safely when permitted to do so and to protect and safeguard the future of the business.
The business achieved a much- improved performance in the first half year and remained on a good track until COVID struck in March."
Keith Edelman
Non-Executive Chairman
OUR BUSINESS
At the end of the reporting period, the Group operated 74 premium bars with a strong presence throughout the UK for its two high- quality retail brands: Revolution, focused on young adults; and Revolución de Cuba, which attracts a broader age range. Most of the Group's sales are derived from drink and food with some late-night admission receipts driven by entertainment completing the sales mix.
Our strategy to focus both management resource and investment capital on the existing estate to improve the underlying performance of the business and to use surplus cash to reduce debt continued to gain momentum pre-COVID, following on from the improving trends seen through the last few months of FY19.
Consistent with our strategy, no new bars were opened in the period and 11 bars were refurbished at cost of £2.4 million. Our refurbishment programme was cut short by COVID so we were unable to cover one fifth of the estate consistent with our stated aim of
-
five-yearcycle. However, we were pleased with the results of the programme, which delivered an overall sales uplift pre-COVID consistent with the first wave of eight refurbishments undertaken in FY19. Good progress was also made with exiting underperforming bars with six leases surrendered including two bars that had not traded since 2015. Since the end of the reporting period, two more loss-making leases have been surrendered and a further five sites returned to their landlords through a Company Voluntary Arrangement ('CVA') undertaken by the Group's wholly owned subsidiary entity, Revolution Bars Limited, resulting in an estate of 67 premium bars as at 16 December 2020. The CVA also delivered rent savings at a further eight bars. With a streamlining of our Support Centre resource undertaken post period end and our estate unburdened by a number of underperforming bars, the Board believes, subject to a return
to normal trading conditions, the Group is well positioned to operate more efficiently and, longer term, achieve a higher net margin.
OUR RESULTS
Sales of £110.1 million (2019: £151.4 million) were 27.3% lower than the previous period as result of the COVID lockdown eliminating all trading for the last 14 weeks of the period. Like-for-like** sales in the first half were up 1.2% and for the
36 weeks to the end of February 2020, before COVID started to impact sales performance, were up 1.3%. Adjusted EBITDA*, our preferred KPI, is significantly impacted by the change in reporting resulting from the implementation of IFRS 16. From next year, when there will be consistency of reporting, our preferred KPI will become adjusted EBITDA including rent
Summary
LIKE-FOR-LIKE** SALES IN FIRST HALF
+1.2%
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Revolution Bars Group plc published this content on 22 January 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 22 January 2021 11:51:09 UTC