Revolution Bars Group has raised £21m to scale back its debt and proceed refurbishing and increasing its venues.
The Manchester-headquartered listed group, which is behind the Revolution and Revolución de Cuba manufacturers, secured the extra capital by way of inserting new shares on the London Stock Exchange.
In a press release, the group revealed that its internet financial institution debt stood at £28.5m on May 10, 2021, which the board considers a stage which “will restrict its potential to spend money on the refurbishment and enlargement of its property”.
A complete of £11m will go in direction of strengthening the group’s steadiness sheet and cowl the prices of the fundraising, £2.5m will likely be used to refurbish a further 15 bars over the subsequent 18 months and £7.5m will likely be used to increase the property by eight venues into new cities and areas.
Chief govt Rob Pitcher stated: “Thanks to the assist of our shareholders and new traders, this profitable fundraising will permit Revolution Bars to emerge from this era of disruption in a powerful place with a match for objective steadiness sheet which gives us with ongoing monetary flexibility and a wonderful platform from which to ship for all our shareholders.
“We now have the firepower to ship robust confirmed returns from the refurbishment of the rest of our uninvested bars and the flexibility to make the most of alternatives that undoubtedly will come up from a really dislocated market.
“We have traded outstandingly because the preliminary restrictions have been lifted. We at the moment are wanting ahead to the top of all restrictions and are excited concerning the subsequent a part of the journey delivering greatest in school leisure and hospitality to our company.”
An announcement issued to the London Stock Exchange added: “Prior to the onset of the Covid-19 pandemic, the Group was demonstrating indicators that the turnaround technique put in place by the board was profitable, with the group attaining development in each like-for-like gross sales and adjusted EBITDA and making important progress on debt discount.
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“However, the Covid-19 pandemic has resulted in a big enhance within the group’s indebtedness, however the measures taken by administration to scale back the group’s prices and money burn throughout a interval of great disruption to the enterprise together with a number of intensive intervals of property closure throughout UK Government enforced lockdowns, and the assist supplied by shareholders through the fairness fundraising accomplished in July 2020.
“The board was excited to have the opportunity to recommence buying and selling outdoors on 12 April 2021 in 20 bars, prepared to bounce again to seize the pent-up demand and to make the most of the enhancements made to its manufacturers over the previous 12 months.
“The board is delighted with the efficiency of the 20 bars inside this group since reopening, with the group delivering 48% of identical interval 2019 gross sales within the 4 weeks to 9 May 2021 from solely 15% of the overall capability of bars that have been in a position to commerce, considerably exceeding expectations.
“The board believes that, with a extra applicable capital construction, the group is properly positioned for robust buying and selling in a market surroundings pushed by robust pent-up client demand, aided by a big enhance in family financial savings.
“The board additional believes that such client demand will present the chance for robust returns from its property refurbishment plans with the group additionally benefiting from beneficial market situations for the enlargement of its property.
“In addition, the administrators imagine that there may be opportunistic M&A prospects when Government assist and the hire moratorium ends over the summer time months.”
The agency inserting and the inserting was performed by finnCap and Peel Hunt by way of an accelerated bookbuilding course of.