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Called it ;)
Well results are out on 17th Oct - hopefully there will be a H1 trading update too.
Be interesting to see how much the CEO is getting. Last year he got c£750k - £400k basic and almost the same in bonuses.
I think his bonus was 'limited' to 100% of basic so the targets must be ridiculously easy for him to get c90% of it whilst he seems unable to get Revolution moving forward.
Buying Peach pub on credit at a time when the balance sheet had just been stabilised and interest rates were increasing seem bizarre IMHO.
May be a wise choice.
Profit isn't forecasted to improve much for the next few years, and costs will only be continue to climb.
Can easily see this being on the ropes for years to come with mo obvious near term catalysts.
Starting to look like a casual dining group situation for me. Debt reduction may see a rebound from here but its a coin toss as to this remaining a going concern for me presently
Sold the balance this morning - too embarrassed to say how much I lost - but at least I can now stop thinking about it.
Laughton assume you are appraising total loss off investment. What % likelihood did you land on?
Well I sold some today - so the bottom is bound to be in.
Super super low price 6p is a 50% plus gain from here. Really tempted to top up
The bid price keeps dropping though
I honestly believe that we have hot bottom here
Mark my words
Number I. I brought in at just over 5p but concur.
Next update not until 17th October I think with finals.
The net debt was £23.1m on 6th March and £20.8m on 25th July.
They are trading well within covernents and paying down debt BUT they have curtailed new investment so really tough going.
Like you I think this is an attractive business at £10m current market cap and dont see the balance sheet as too bad. Do think this is attractively priced.
This seems like an obvious buy now to me. They arent going bankrupt. At this price Im supprised they dont get bought out
Peaches are going to pull them through I think rather than the Rev Bars
Worth a little look at COM at £7m cap.. growing fast and more cash than current value.
Group revenue increased 49.7% to £31.0m (2021 restated: £20.7m).
· Gross profit up 44.3% to £24.4m (2021 restated: £16.9m).
· Adjusted EBITDA* before highlighted items of £6.3m (2021: £6.4m).
· Cash and cash equivalents balance at the period end of £9.9m and a net cash position of £7.7m (2021: £7.1m).
Yes Ian.
This has moved 20% lower on virtually no volume.
Slow burner for sure but I like the risk and reward of a recovery play. Timed by 5.9p buy too early in anticipation of a better set of results which were quite ordinary.
alcohol tax duty comes in today, levelling the field a bit compared to supermarket prices. probably great for peaches and beer drinkers at the bars, but unsure how it will affect ****tails seeing as they are of course made with spirits
A decent but not spectacular update. Good to see debt coming down, so cash generative, but this was to be expected as the refurb programme was delayed in H2 following the Peach purchase.
Reading between the lines it looks like Peach is performing well but the core Revolution bars are still struggling.
The outlook for 2024 seems to be less optimistic than previous updates.
IMHO the EBITDA target is misleading. Firstly RBG quote 2 separate EBITDA amounts so that immediately is slightly confusing. Secondly profit is king, so that should be the BODs focus.
Buying Peach on debt at a time when interest rates are going through the roof seems a high risk approach - however, the operating profit can still be reported as healthy but add in the finance costs and suddenly it doesn't look so good.
The CEO, Pitcher, received a salary of over £400k and a bonus of 95% of salary in 2022 (plus loads of share options) so over £750k in total. Amazingly generous for a company that made just £2m profit overall and the share price crashed
Yes Barnet I did know that but forgot. It rather illustrates a point though. This one could go either way but feels a good risk and reward. Good Xmas and debt in Jan at £15m not impossible.
My personal view is this could be longer term a TO target. With net debt of £20m a cheeky 12p bid would cost £45m.
This made me laugh! The shareholders previously turned down 100p cash as too low.....
Pretty decent update. Looks like balance sheet improving in difficult trading conditions. Could be a remarkable turnaround play here. Truly rock bottom market cap... Taken a small entry position @5.8
Certainly not rushing out to buy more. Xmas pre-bookings are encouraging.
GLA we got a while to wait for this to turn around
There isnt anything unexpected or shocking mostly revenue is inline with expectations plus as you say debt is down.
They have had some challenging times to get through and i think they are doing well.
Next year will be a good one when inflation drops
Not sure Number 1.
Peach is clearly an excellent aquisition at a good price.
Not much meat in their but I liked net bank debt at £20.8m at 25th July. It was £23.1m at 6th March so clearly generating cash. £2.3m in 4 and a bit months.
They did invest £3.5m in six refits up to Dec 22 so have a difficult decision pay back debt or refurbish.
For the now they have taken the option of paying back debt.
My personal view is this could be longer term a TO target. With net debt of £20m a cheeky 12p bid would cost £45m. Feels to me its worth that. Opening be interesting.
Pretty good update
nothing really worrying
keep on keeping on
I think we will see a rise here today
Yeah, more than likely badly marked, at least 75k of those sells are buys from myself and no1, most others probably the same, been fluctuating all day
Hope you are right Ian. I have a good feeling as you can see from previous posts. Market cap is really low if update is promising.
Could just be badly defined trades because the price was too close to the sale price. if there is that many sells, it would have dropped a lot more than 0.08p