Trading resumes in Revolution Bars after firm secures £12.5m in emergency fundraising

Troubled Revolution Bars last night announced an emergency multi-million-pound fundraising backed by serial hospitality investor Luke Johnson. 

In a statement published after markets closed, the owner of Revolution, Revolución de Cuba and Peach Pubs, said it planed to raise up to £10.5m for a placing and up to £2m via the placing and open offer.

Up to £3m of the investment is being funded by former Pizza Express and Channel 4 chairman Luke Johnson, while another £3m is coming from the German-owned Robus Recovery Fund II and £3.5m from three existing shareholders. 

It has been proposed that Johnson join the board as a non-executive director in the first instance and later become chairman of the nightlife chain. 

The firm has already closed eight underperforming sites this year. Bars across Southampton, Reading and Liverpool were impacted, but no sites in London closed. 

This month, trading in Revolution shares was suspended after the company failed to publish their interim results on April 6th. 

Trading in the shares has resumed this morning.

Alongside the fundraising announcement, the business, which owns a total of 58 bars and 22 gastro pubs, published its trading performance for the 26 weeks to the end of December. 

The group achieved sales growth of 8.3 per cent year over year and a profit before tax of £3.1m. 

Operating profit grew £7.2m up from £3m in the exact same period the year before. 

Rob Pitcher, chief executive officer, said: “The first half of FY24 has seen continued challenges with the cost-of-living crisis disproportionately impacting particularly the discretionary expenditure of our young Revolution brand guests. 

“Revolución de Cuba and Peach have been less impacted as the guest profile is more affluent, and both brands enjoyed very strong festive trading, and Revolución de Cuba, in particular, has shown excellent trading when compared against the wider Bars market.”

He added: “I would like to take this opportunity to thank our brilliant teams for always bringing a smile to our guests, and their continued resilience and hard work in the face of these challenging times.”

“They have delivered another brilliant Christmas, continue to delight and thrill our guests, and I appreciate their continued professionalism.”