The Revel Collective (TRC) H1 2025 earnings summary

Executive summary

• New Board in place, driving strategic plans amid a challenging market and delayed restructuring.

• Revenue declined 22% year-over-year to £64.2m for H1 FY25, mainly due to estate reduction and delayed recovery in bar brands following a prolonged Restructuring Plan.

• Peach Pubs and Founders & Co. delivered strong performances, while bar brands faced ongoing challenges from weak consumer confidence and increased competition.

• The Restructuring Plan completed in September 2024, resulting in significant lease disposals, site closures, and a strengthened balance sheet.

• Record pre-booked corporate bookings (+5.3% year-over-year) and positive like-for-like festive sales (+1.6%) were achieved despite market headwinds.

Financial highlights

• Sales for FY25 H1 were £64.2m, down 22.0% year-over-year; like-for-like sales for the festive period up 1.6%.

• Adjusted EBITDA (IAS 17) was £3.1m, reflecting restructuring delays and ongoing challenges, but stable year-over-year.

• IFRS 16 operating profit was £30.5m, including £30.8m non-cash exceptional income and £2.4m cash exceptional costs.

• Net bank debt reduced to £14.7m at FY25 H1, aided by £4.0m debt write-off and fundraising.

• Statutory profit before tax: £30.1m (H1 FY24: £3.1m), driven by exceptional non-cash gains from lease disposals.

Outlook and guidance

• Disruption from restructuring is over, with significant growth opportunities for bars and strong pub performance expected.

• Board expects FY25 adjusted EBITDA (APM) of £2.0–4.0m, with further cost savings identified for FY26.

• Budget cost increases from April 2025 will offset restructuring savings, with an annualized impact of £4.0m.

• Revolution brand relaunch planned for Spring 2025, targeting increased disposable income among young guests.

• Expansion opportunities identified for Peach Pubs and Founders & Co. from FY26.