Revolution Bars Share Discussion Threads

[buywell3] 22/5/2017 08:38

Inflation on the rise is something to consider

China is exporting it around the world

Also you might want to consider that Revolution have already committed by the signing of leases for the new bars that now have to be opened in 2017

I bet they wish they had never signed those leases

Be interesting to see if they open any in 2018

Looks like early mug punters will get burnt today


read this for a better update

ProPhotonix Limited AGM Statement 18 May 2017

18/05/2017

AGM Statement

ProPhotonix Limited (London Stock Exchange - AIM: PPIX, OTC: STKR), a high technology designer and manufacturer of LED illumination systems and laser diode modules, with operations in Ireland and the United Kingdom, is holding its Annual General Meeting at 2:00pm today, at which the President and CEO, Tim Losik, will make the following statement:

"2016 was a successful year for ProPhotonix with another year of net profit. During 2016, net income increased 348%, operating income increased 89% and EBITDA increased by 49%, each compared with 2015.

"In addition, the ProPhotonix team has been diligently pursuing new customers and new product and market initiatives, which has resulted in an encouraging 2017 to date. The Company has enlarged its UV product family to include the COBRA Cure FX3, its highest intensity fan cooled UV LED products, and adds to the existing COBRA Cure FX1 and the COBRA Cure FX2.

"The Board remains positive about the business pipeline and is confident in the Company's ability to achieve continued positive momentum toward its business objectives."

[5chipper] 22/5/2017 08:30

Buywell3.. in the feb interims report ceo discussed extra cost headwinds and told investors they were working hard to mitigate.

On friday he stated profits will be same as last year. . If you consider newly opened bars did not contribute to profitability then same set of profitable bars have generated the same profit as last year. Considering the all time high increase in nmw and b. rates then this seems to be a mitigation strategy well executed. Something to consider

[stocky12] 22/5/2017 08:24

Takeover bid speculation already?

[buywell3] 22/5/2017 08:21

Not an auspicious start to the day

Will early mug punters have set stops ?

[connor23] 22/5/2017 08:04

I see Langton mentioned PE interest reports. Presumably in the specialist press as I didn't see anything.

[opodio] 22/5/2017 07:43

Boucne to 170p?

BID

Place your bets lads

[blusteradjuster] 22/5/2017 07:42

I said it's a constant in that it's generally above zero.

I didn't say it was a constant value.

A one-off blip in costs stays in the released-monthly inflation figures for a whole year but a PLC would probably only warn of it (ideally pre-warn) once.

[connor23] 22/5/2017 07:30

No wage price inflation in the UK (I can testify to this lol) so the min wage bump should be a one off. Obviously more detail on the costs overrun and how the company intends to mitigate would be useful. The point is (for bulls) the negatives are more than in the price.

[buywell3] 22/5/2017 07:22

Inflation is constant my @rse it is on the increase which is why house prices are now falling

Hence bar leases signed up to would have been cheaper next year and cheaper still the year after

Also following the 25th Feb positive Interims the pace at which Revolution is planning to open new bars has accelerated and is set to carry on into 2017 with more new bars



But

These new sites come at a price, with a whopping 183 per cent rise in one-off opening costs

[blusteradjuster] 22/5/2017 07:21

Inflation is, generally, a constant..

..but there was:

- a sizeable hike in the minimum wage that won't be repeated to the same degree.
- the fall in the £ (partly reversed recently), creates a one-off blip in inflation.

Yes, they should have factored this in.
No, it doesn't look like part of a new trend.

[buywell3] 22/5/2017 07:02

The problem is the CEO only said this a couple of months ago




So on Feb 25th , everything was hunky dory

11 weeks later things have changed and he says ''increases in minimum wage, the apprenticeship levy, and the rise in general business rates'' have all been blamed for costs that are now going to be more than anticipated.

But inflation is now on the rise EVERYWHERE , costs are going up from now on , wages ,rates and prices for goods are all going to rise from this point on.


This year the financial year end for Revolution is June 30th.

The impact of rising costs for the year 2017 will be felt for the whole 52 weeks NOT just the last 11 weeks since the +ve slanted interim results given on Feb 25th.

Hence I think the slide on Friday was deemed by the market as profit warning number 1.

The market now waits for the next trading update , profit warnings have a tendency to go in 3's

Sure I expect there might be a bounce this am as mug punters try to make a quick buck , but when they sell , what happens next ?

[moneytree1] 22/5/2017 06:59

paulypilot

It's a fantastic business model. Investors just have to sit back & do nothing, and in 5 years time we should be significantly richer from this share.

Over-analysing historic numbers is completely missing the point!



another useless call from the 'guru'......

[5chipper] 22/5/2017 06:53

Thevaluehunter - the interim rbg cfo was formerly cfo at Walkabout for 7 years; cfo at regent inns; f.controller at spirit group earlier in his career as well as spells at esporta and first leisure.

Is this the cfo you are referring to as not having had much experience in the sector?

[thevaluehunter] 22/5/2017 01:55

CFO doesn't look like he's had much time in the hospitality sector through his career, let's hope they appoint someone who has had experience in running bars or restaurants.

[barnetpeter] 21/5/2017 22:04

I think about 160 to 180 ish this is a great short so lets see if this does rally strongly. I note the cfo leaving recently to spend time with family. Which I accept...but I wonder if the guy knew things were not so good and it just triggered things. He wanted to work less but realised the opposite was needed.

It is easy for the company to generate revenue but profits in an economy where costs are rising rapidly is another matter. Trying to increase sites is plain daft at this moment.....personal debt is at record levels, wages are going up, "cheap labour" is not that cheap anymore. Business rates are rising and so on.

I have seen plenty of genuine management who were really clueless about finances. It can all get out of hand. I remember a couple who were running a couple of pubs packed to the rafters every night. They thought they were making fortunes...the shock when their accountant warned them they faced imminent bankruptcy if they did not get a grip on costs.

We will only find out the true position early next yr I think! Pays yer money.....takes your position long or short.

[investment dave] 21/5/2017 15:20

French agreed and I will not stop

[hooley] 21/5/2017 14:39

As a retired investment analyst of 30 years standing, I bought a few on Friday just before the close. There will have been an element of shorting earlier. Closure should produce a big bounce at some stage. The fundamental analysts have had their say, following conversations with the company. We await clarification?

[turbocharge] 21/5/2017 14:00

Not sure if it's already been posted.

"Revolution Bars Group PLC (LON:RBG)‘s stock had its “buy” rating reissued by FinnCap in a research note issued on Thursday, April 20th. They presently have a GBX 250 ($3.23) target price on the stock. FinnCap’s price objective would suggest a potential upside of 104.50% from the company’s current price.

A number of other research analysts have also weighed in on RBG. Canaccord Genuity reissued a “buy” rating and set a GBX 300 ($3.87) price target on shares of Revolution Bars Group PLC in a research note on Tuesday, February 14th. Peel Hunt restated a “buy” rating and set a GBX 260 ($3.36) price objective on shares of Revolution Bars Group PLC in a report on Thursday, February 23rd. Finally, Numis Securities Ltd restated a “buy” rating and set a GBX 265 ($3.42) price objective on shares of Revolution Bars Group PLC in a report on Thursday, January 19th."

hxxps://goo.gl/cclMBm

[frenchfry] 21/5/2017 13:53

Investment Dave- if as you state (post 357) you were in at 128 and 130, then ramping is the natural option left to you.

[investment dave] 21/5/2017 13:36

Either way this will be a great recovery trade this week and expect a big move higher

[5chipper] 21/5/2017 13:31

Thanks for providing your view and responding to my posts staverly... i'd imagine m&b have a higher % of owned estate and more out of town lower rent properties... but anyway let's see what happens next week!

[5chipper] 21/5/2017 13:22

Yes you are quite correct Dan_The_Epic - my calculation was based on hy17 not fy16 figure. Honest mistake - thanks for pointing out

[buywell3] 21/5/2017 13:10

The reason given was 'staffing costs'

When did the rise in staffing costs start ?

Are they still rising ?

What is being done to counter their rise ?