The Revel Collective (TRC) H1 2024 earnings summary

Executive summary

• Achieved 8.3% year-over-year sales growth to £82.3m for H1 FY24, driven by strong festive trading and full-period contribution from Peach Pubs.

• Statutory profit before tax was £3.1m, aided by a £3.9m exceptional gain from lease disposals; adjusted EBITDA (IAS 17) fell to £3.2m from £5.1m due to cost pressures and softer like-for-like sales.

• Announced eight site closures and a proposed Restructuring Plan, alongside a Fundraising and Formal Sale Process to address ongoing cost and liquidity challenges.

• Net bank debt increased to £21.8m as of 10 April 2024; no interim dividend declared.

Financial highlights

• Revenue rose to £82.3m from £76.0m year-over-year; gross profit increased to £63.0m (gross margin 76.5%).

• Adjusted EBITDA (IFRS 16) was £8.9m (down from £9.8m); adjusted EBITDA (IAS 17) was £3.2m (down from £5.1m).

• Statutory profit before tax was £3.1m (vs. £(0.1)m loss prior year); adjusted pre-tax loss (IAS 17) was £2.1m.

• Basic EPS was 1.3p (vs. 0.1p); adjusted basic loss per share was (0.6)p (vs. 0.7p earnings prior year).

• Net cash flow from operations was £10.1m; capital expenditure was £1.2m, focused on existing sites.

Outlook and guidance

• Board remains confident of achieving adjusted EBITDA in line with January 2024 market expectations for FY24.

• Trading post-Christmas has been challenging, especially for the Revolution brand; expect some benefit from improving economic indicators and wage increases.

• Liquidity pressures anticipated in Q1 FY25 without successful Fundraising and Restructuring Plan.