Revolution Bars Group PLC on Thursday said it raised £10.5 million plus up to £2.0 million in its bookbuild launched yesterday, amid a restructuring plan that could see the business sold.
The Manchester-based bar group, which operates the brands Revolution and Revolucion de Cuba, will issue 1.05 billion new shares under a firm placing and subscription at 1 pence per share, raising £10.5 million.
Meanwhile, a minimum of 50.0 million new shares will be issued via a placing and open offer at the issue price, raising a minimum of £500,000. This will increase to a maximum of 201.3 million new shares, or around £2.0 million, depending on shareholder uptake under the open offer.
Shares in Revolution Bars surged 48% to 1.70p each in London on Thursday. Results of the fundraise were announced after the closing bell of trading in London.
Several directors have agreed or shown intention to participate in the fundraise.
In the firm placing, Chief Executive Officer Rob Pitcher intends to buy 8.0 million new shares, while Senior Independent Non-Executive Director Jemima Bird subscribes to 1.0 million new shares.
Under the offer, Non-Executive Chair Keith Edelman subscribes to 1.4 million new shares, Chief Financial Officer Danielle Davies subscribes to 1.3 million new shares, while Non-Executive Director William Tuffy subscribes to 360,000 new shares.
Following admission, Revolution Bars said up to 1.50 billion shares will be in issue, with the new shares representing around 85% of the enlarged share capital.
The new shares are expected to be admitted to trading on AIM in London on September 3.
On Wednesday, Revolution Bars announced the fundraise amid a restructuring plan that could see the business sold.
Without the additional funding, and cost savings delivered through a proposed restructuring plan, Revolution Bars said it would face liquidity pressures from the first quarter of 2025 onwards.
In addition, the company said it had launched a formal sale process to see whether a sale of the company would provide a more beneficial outcome for stakeholders than the restructuring.
Revolution Bars said it was also looking at a sale of one or more subsidiaries.
Revolution Bars also announced cornerstone investments of £9.5 million: £3.0 million from Luke Johnson, £3.0 million from Robus and £3.5 million from three key existing shareholders.
Proceeds from the fundraising will be used to fund the implementation of the restructuring, which will primarily impact the Revolution branded sites, provide additional working capital and is expected to enable the company to recommence a site refurbishment programme from 2026.
The proposed restructuring is expected to enable significant adjusted earnings before interest, tax, depreciation and amortisation improvement, put at £3.8 million in the first year, through site rationalisation, rent reductions and other central cost savings.
In addition to the central cost savings identified, which equate to £900,000 in 2025, the company intends to identify up to a further £2.0 million of annual cost savings.
In addition, Revolution Bars reported results for the 26 weeks to December 30.
The firm reported a pretax profit of £3.1 million, swinging from a pretax loss of £0.1 million the year prior. Sales climbed to £82.3 million from £76.0 million.
The profit included a £3.9 million exceptional gain on the disposal of a property.
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