Revolution Bars Share Discussion Threads

[mammyoko] 02/5/2018 17:45

Stonegate don't want to pay more than 203p. They can't come back with an offer at that level when the share price is at 145p - it was rejected by the instis when the share price had been 125p. Deltic are a red herring - they couldn't raise the funding before and are unlikely to be able to do so now.

Absent any news and any major moves in the wider market, this will stay around here with a 20p bid premium attached to it. If either the market tanks or their next update gives further evidence that this isn't a self-funding roll-out then that bid premium is going to evaporate. Next scheduled update isn't until July.

Probably the best thing that could happen is for these to lose their bid premium and start trading at 120p again. That could then revive Stonegate's interest. Less likely at this level when the backdrop is tough trading conditions

[crumppot] 02/5/2018 14:37

I don't understand why nothing is happening. I cant believe that things have changed that much. They could pitch a lower offer and most people would accept unless there was a counter one......

[luafc] 02/5/2018 14:06

I would be happy for Stonegate to win a renewed bid at under 203. Management poorly rated, fairly or not, doesn’t matter.

[spot1034] 29/4/2018 13:43

Brokers still have targets well in excess of current share price - most recently Peel Hunt reiterated target of 240p last month.
hxxps://stocknewstimes.com/2018/04/23/revolution-bars-group-rbg-receives-buy-rating-from-peel-hunt.html

[barvin] 29/4/2018 11:12

Surprised to not see any renewed bid action here, now all time restrictions are lifted. Are we confident they will return?

[yupawiese2010] 20/4/2018 20:14

Deltic Group has secured a new £20m debt facility with HSBC as part of its strategy to target new sites, other multi-site operators, and even make larger-scale acquisitions. Speaking at Peel Hunt’s Leisure Conference yesterday, CEO peter Marks said that the first round of the group’s refurbishment programme -- due to complete this financial year -- ‘is the big rocket fuel for’ for the bar and club operator.

[spot1034] 19/4/2018 17:06

Comment on Stonegate in which the bid for RBG last year gets a mention.

hxxps://www.thecaterer.com/articles/525031/top-100-simon-longbottom-stonegate

[exbroker] 16/4/2018 20:02

Bought some more today, both parties free to bid from tomorrow. I would be happy to sell mine at 203 given the chance.

[spot1034] 10/4/2018 16:02

A quieter day today but buyers still coming in and the price has nudged up a couple more pennies.

[spot1034] 09/4/2018 16:18

Must look good value to someone at this level.

[tinker49] 08/4/2018 19:22

Deltic Group set for fresh float plan: The Deltic Group, the UK’s largest operator of premium late-night bars and clubs with 57 venues, is revisiting plans for a potential float. The company put plans for a stock offering on hold last year because of challenging trading conditions. However, Deltic appears to have reignited listing plans – a capital markets day for potential investors is planned later this month, reports The Sunday Times. The company, led by chief executive Peter Marks, made an approach for Revolution Bars Group in October. At the time, Revolution was pursuing an ultimately unsuccessful £101m merger with Stonegate Pub Company. After being rebuffed, Deltic snapped up a 3% stake in Revolution. Under takeover rules, the earliest it can come back with an offer for its rival is Tuesday (10 April). Marks pulled Deltic out of the ashes of nightclub group Luminar in a £34m rescue in 2011. Last June he said he might seek a float or sale within 12 months, “macro factors permitting”. Marks also said he was hungry for smaller acquisitions, and indicated he would seek funding support from investors or private equity firms for any potential deals. Deltic, which is being advised by Stifel, is keen to convince potential investors the late-night sector has a future, despite a contraction in recent years.

[yupawiese2010] 07/3/2018 19:48

Phil Oakleys analysis of company's accounts, you will need to scroll down to get to RBG.

[spot1034] 07/3/2018 15:02

It really is a bizarre state of affairs when it was Deltic's intervention which derailed the Stonegate offer, saying that it undervalued the company (which many commentators agreed with) yet six months on they seem incapable of taking advantage with the share price now languishing more than 25% below that supposedly cheap valuation.

I'm convinced that this story has another chapter, but when it will begin and whether there will ultimately be a happy ending for shareholders is anybody's guess.

[barvin] 07/3/2018 15:01

Good comments from Paul Scott as ever.If I can get a bid price at FLYB whilst I wait for the bidding to resume here and then back in at 120p-130p level that will be a result.From my limited knowledge of the price here, it seems pretty illiquid. So a wall of disgruntled sellers could walk this back down to 125p level along with sentiment of economy/restaurant sector etc.But I remain confident of a bidding war resuming in 2018

[montyville2] 07/3/2018 13:23

Latest Paul Scott comment

Brief comment

I've been wading through the reader comments for yesterday, and quite a few people want me to comment on recent results from Revolution Bars. I was quite pleased that Graham was working that day, as people already know that I'm bullish on the company, so thought it would be interesting to get Graham's take - which I can probably summarise as being lukewarm, at best!

I'm sure you've already worked out that Stockopedia gives Graham & I complete freedom to write what we believe to be true, at that moment in time, on all companies. We don't confer, or go soft on stocks that the other (or anyone else for that matter) happens to own. In any case, I welcome bearish views on stocks that I hold, as it makes me think more, and question whether I'm right or wrong.

There isn't time at the moment to write anything detailed on RBG, but to give you my current thinking, here's a copy of something I just posted in the comments to yesterday's article, which you might otherwise have missed;

The accounting issues are pretty irrelevant I think - indeed the onerous lease provision will actually boost future reported profits, so could be seen as positive.
Roll-out of new branches going well (exceeding initial targets)
Almost debt-free
Current trading of -2% LFLs is a bit disappointing
Food - good to see new CEO & COO being focused (by the Chairman) on improving their food offering. This is key, and a big opportunity in my view. They already have big footfall, but if they could fill the bars with diners during the day, then a lot of upside - high margin sales, with little to no additional fixed costs
This share is woefully misunderstood by the stock market - we can buy now at under 150p, when a cash bidder was turned away at 203p quite recently. So the valuation clearly doesn't make sense.
I am very confident this is likely to be a big win, but no idea when - patience needed.

Obviously, as always, that's just my personal opinion (on a stock which I hold a big long position) - which is sometimes right, and sometimes wrong!

[barvin] 06/3/2018 14:58

If Brexit was called off, I think you'd have more than the share price of RBG to worry about.

You're living in a dream world if you think Brexit will be reversed now.

[runthejoules] 06/3/2018 14:24

Barvin, not news, my prediction. Called off or kicked so far into the long grass it is effectively so. As soon as house prices start to fall with the population all support for it and the Tories will evaporate. I may be wrong but that's what I'm banking on, just explaining why I'm still in the market/ here in this sector.

[barvin] 06/3/2018 13:36

Brexit called off? News to me

[qs99] 06/3/2018 11:21

Think this will drift IMO: divi issues, net debt increasing, market headwinds, ridiculous amount of exceptionals in results and massive costs of aborted bid all IMO....I think funds will try and sell this down, when it gets to nearer £1.20, it may not do, but anywhere around there then IMO the Stonegates/Deltics of this world may start to look seriously at bidding again....DYOR and all IMO...but can't see why anyone would be buying shares at this level yet...GLA

[runthejoules] 06/3/2018 11:01

Like Paul Scott says, they've got to improve the food. I bought in here for the bid a little while ago and will hang on despite being underwater but demographically, a lot of people are giving up drinking so it's got to be all about the food. I'd welcome a bid from anyone with money personally.

On the other hand I'm pretty sure that when Brexit gets called off and young foreign workers come back the services sector, and economy as a while, will bounce.