Revolution Bars (RBG) has scrapped its dividend and put expansion plans on pause as it works to turn around its business. The money has been redirected towards site refurbishments, presumably to make them more appealing for customers, and pay down debt. Chief executive Rob Pitcher said lack of investment into the estate had impacted the company's performance. Three sites were already updated in early February, and another four are due before the end of the current financial year. Refurbished sites are said to be showing improved trading already.
Total sales were up 6.4 per cent to £78.5m, aided by the five new locations that opened during the period. But on a like-for-like basis, revenue fell 4 per cent, while the second half is off to a “slow start”. Management expects full-year adjusted cash profits to be in the range of £11m to £12m, compared to £15m last financial year.
Analysts at Peel Hunt expect adjusted pre-tax profits of £3m during the year to June 2019 giving EPS of 4.7p, compared to £8m and 13p in FY2018.
| REVOLUTION BARS (RBG) | ||||
| ORD PRICE: | 66.5p | MARKET VALUE: | £33.3m | |
| TOUCH: | 66-66.5p | 12-MONTH HIGH: | 170p | LOW: 61p |
| DIVIDEND YIELD: | nil | PE RATIO: | NA | |
| NET ASSET VALUE: | 47p | NET DEBT: | 63% | |
| Half-year to 30 Dec | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
| 2017 (restated) | 73.8 | -3.96 | -6.8 | 1.65 |
| 2018* | 78.5 | -3.48 | -6.2 | nil |
| % change | +6 | -12 | -9 | - |
| Ex-div: | na | |||
| Payment: | na | |||
| *Period ended 29 Dec 2018 | ||||
