Full-year results for Revolution Bars (RBG) were perhaps overshadowed by the bidding war that has centred on the group. Stonegate Pub Company appears to be leading the way with a 203p-a-share cash offer, although nightclub operator Deltic has until 10 October to “put up or shut up”, according to Revolution. Should Deltic come back with a higher cash bid, then management said it would not take long for the board to change its stance, which currently recommends that shareholders accept Stonegate’s proposal.
May’s profit warning signalled that costs had risen faster than expected, sending shares down 40 per cent in one day. Indeed, operating profit fell by almost a third to £3.7m, although net cash flow stayed in positive territory at £10m. Management is working on how to better schedule staff shifts and trialling a simplified menu in an effort to cut costs. Despite the added costs, the gross margin improved by 80 basis points to 76.2 per cent. The six new bars opened during the year contributed to the increase in group revenue, although on a like-for-like basis sales improved by 1.5 per cent.
Analysts at Peel Hunt expect pre-tax profits of £10.7m in the year to June 2018, giving EPS of 16.3p, up from £9.3m and 13.5p in FY2017.
| REVOLUTION BARS (RBG) | ||||
| ORD PRICE: | 210p | MARKET VALUE: | £105m | |
| TOUCH: | 210-211p | 12-MONTH HIGH: | 246p | LOW: 99p |
| DIVIDEND YIELD: | 1.6% | PE RATIO: | 26 | |
| NET ASSET VALUE: | 80p | NET DEBT: | 8% | |
| Year to 1 Jul | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
| 2013 | 112 | -2.1 | na | na |
| 2014 | 112 | 2.6 | 6.0 | nil |
| 2015 | 112 | 2.9 | 4.6 | 1.7 |
| 2016 (restated) | 120 | 5.1 | 8.8 | 3.3 |
| 2017 | 130 | 3.6 | 8.2 | 3.3 |
| % change | +9 | -31 | -7 | - |
| Ex-div: | tbc | |||
| Payment: | 07 Dec* | |||
| *Dividend will not be payable should the Stonegate acquisition complete before AGM | ||||
