Revolution Bars Share Discussion Threads

[mammyoko] 07/9/2018 10:57

Deltic NTAV of £6.7m. Net current liabilities of £27m. They have no chance of raising the finance to buy RBG and can't believe current insti holders will be interested in handing over management of a combined entity to them based on their latest accounts.

[tonysss13] 07/9/2018 10:46

Ben interestingly has labelled this as well done rather than rare, so I think this is a nailed on story IMO

[jeffian] 07/9/2018 10:37

It's the wrong one. They should have gone with Stonegate.

[jpsmithson] 07/9/2018 10:33

Interesting, Ben Harrington is a credible source for mergers and acquisitions.

[tonysss13] 07/9/2018 10:08

hxxps://www.betaville.co.uk/betaville-intelligence/well-done-alert-revolution-bars-group/

Revolution Bars Group is said to have rekindled talks with privately-owned Deltic about merger.

Sources claiming to be familiar with the matter said Revolution and nightclub operator Deltic have been holding amicable discussions over the last few weeks about striking a deal to combine.

[mammyoko] 30/8/2018 13:00

Bid premium well and truly evaporated. Stonegate gone elsewhere - picked up Be at One for £50m in July> Deltic never had the resources. This could be heading sub-100p

[spot1034] 16/8/2018 12:46

Without Deltic's intervention, the bid from Stonegate would very likely have gone through. It was only the suggestion planted by them (and supported by some commentators) that the Stonegate bid was too low that led to it being rejected. Well, here we are at about half the valuation being suggested as fair only a year ago.

It must say something about Deltic that they are unable to do anything about this.

[stokiematt] 15/8/2018 15:23

Suggests Detica paid around 146p per share. I wonder if they've reduced their holdings since that period or they're looking at 600k loss.

[crumppot] 15/8/2018 12:32

RBG should be talking to Deltic. They seem to be floundering at the expense of the shareholders.

[mctmct] 15/8/2018 11:52

Detica still has an acquisition strategy and the resources to carry it through. They valued RBG above £2 a year ago, so if the new CEO kitchen-sinks the year's accounts, it might trigger a bid.

Detica's accounts today say:

Following the end of the period, the Parent Company agreed a new £14m financing facility with HSBC, resetting the term loan to £10m and including a new £4m RCF facility. Discussions are in an advanced stage to provide an additional facility dedicated to supporting the acquisition strategy.

Corporate Transaction
During the period, the Company engaged with the board of a listed national bar operator regarding a potential merger of the two businesses. Deltic's proposal envisaged an enlarged group, that would maintain the stock market listing. The Company incurred costs totalling £1.1m through the proposal process, which was ultimately aborted.

During the period, the Company purchased 1,500,000 shares in this business on the open market for a total cost of £2.2m. This constitutes a 3% shareholding in the company. The shares were valued at £2.5m at the end of the period.The £0.3m gain has been recognised in other comprehensive income.

[mammyoko] 15/8/2018 09:02

The story here has gone very stale. Stonegate moved on. Trading alone doesn't justify current price. Bid premium evaporated. Tough summer trading likely. Dividend not covered by free cashflow. More onerous lease provisions likely. Heading towards 100p?

[costax1654x] 08/8/2018 20:31

Is a new listed company BigDISH,next JustEat,small mcap,huge customer expansion in Asia coming to UK.Ex JustEat Ceo,Ex play.com Ceo,app is on AIS and google,offering discounts at restaurants up to 70%.Brilliant story.It will be a few baggers soon

[yorkshireinvestor] 08/8/2018 19:50

I've been in the Manchester revs de Cuba a few times and always rammed in there at the weekend! I was in the Chester Revolution on Sat, must have had a recent fit out, really impressed. A table of 19, the waitress looked after us and was friendly. The food was good quality and great value for money, can't go wrong really!

[runthejoules] 08/8/2018 19:23

Went to take a look at the Revolucion de Cuba in Manchester Peter St today and by 'eck it's gorgeous, really well done. They have a massive underground bar downstairs with a dancefloor, projector, screen, and, as I was looking to book an Awayday for my work, do the £10 meal menu plus fruit & pastries, tea and coffee for £14.95 per head. But because of that the venue hire is free in the day. They do salsa lessons down there, and put the match on the big projector screen when we got chucked out of the World Cup. But mostly they use it as an office! So there is a tremendous untapped potential here.

The bookings person I spoke to said they loved working for RBG and some staff didn't relish the potential Stonegate takeover because they get 50% drinks discounts and yearly shindigs at Tatton Park. Sounds like the staff enjoy working there. They said the new RBGs all had outside space and enjoyed working [at RDC] more compared to Revolution. They hadn't heard of Deltic.

Staff upstairs were friendly and well turned-out. Bar light and clean. Can see why Paul Scott likes research there so much!

So! Make of that what you will. A lot of untapped potential. They could have gigs down there, all sorts. Could be full at the weekend, though.

I'll let you know what I think of the food soon, well, the vegan options anyway!

Still holding on for a t/o or, more likely, an improvement in fortunes with the festive period here.

[boonkoh] 23/7/2018 09:31

Stonegate buys Be At One chain. They're probably not thinking of bidding again for Revolution anytime soon then.

[pireric] 22/7/2018 21:18

I do wonder how much space in their banking facilities they have left. I'd have thought this Stonegate move today is probably a small net negative to RBG as less likely to be taken over as you suggest. Will look further

[arthur_lame_stocks] 22/7/2018 20:52

I looked it up after you mentioned it. They are also planning another acquisition, probably too much to hope that they're coming back for another go at Revolution although shareholders might be more amenable to it this time.

[pireric] 22/7/2018 19:14

Stonegate gone fishing elsewhere it seems. Bought Be at One, set to be announced tomorrow

[pireric] 16/6/2018 10:03

Fair. Re-worded

I don't think there is a great buy case for this as a standalone entity.

[jeffian] 15/6/2018 23:28

"The buy case here is that the assets are worth more than the share price"

Are they?

According to the 2016 report "All of the Group’s operating sites are held on leases". Leases are liabilities, not assets. In the 2016 report, they claim £100m-odd of 'assets', half of which are 'short leaseholds' and the other half the investment in fitting them out. As anyone in property knows, the value of a lease is its ability to generate profit and the fixtures and fittings are a wasting asset written off usually over about 5 years but, in the event that a site trades at a loss and has to be closed, the lease is worth whatever premium someone else will pay for the site, if at all, and the F&F is a write-off.

[pireric] 15/6/2018 21:39

The buy case here is that the business is worth more to an industry player than standalone, rather than the operating performance justifying it IMO.

The problem is that this is very unpredictable. Could be sat here in 3 years and not have a bid.

[staverly] 15/6/2018 02:03

Following my earlier posts (409,439,444,590,596,647) still keep an eye on this story. The first thing the CEO designate should do is insist that the unaffordable dividend is immediately cut. Then he can sort out the rest of the mess the previous management have created. If not, then i would expect more of the same. It shouldn't be too difficult to improve the group's dire operating performance but it will require an effective CEO.
No position to date.

[runthejoules] 14/6/2018 20:07

Not so sure jpsmithson. Some (some women) might be looking for somewhere that's not showing football but want to meet back up with their blokes later. But world cups apparently bring sales up across the board. Of course if England are out early...

[jpsmithson] 14/6/2018 10:58

James why do you think the world cup will be a positive for a Revolution or Revolución de Cuba bar ?
I think it could be an off the shelf excuse for poor trading in June/July. People will be going to bars and pubs with TV's in them.

[jameshughes1980] 14/6/2018 10:38

Agree - I've bought a few more this morning. No CEO since around October can't have helped. Scheduling improvements through software developments seem yet to have kicked in (should offset some headwinds)and upside from food / new CEO should help. Given backdrop of potential bid activity risk reward doesn't seem too bad. Interesting to hear how SCVR / PAUL Scott view this. Perhaps some upside from World Cup.....