Member Info for Bigbaddaz

I’ve been holding on begrudgingly for too long, hoping just hoping for something positive. I thought my average 0.00356 would have provided me a profit, sold out this morning at a considerable loss. The final straw for me, AZ said at the AGM the £1m from TAG to SYME would come during July as TAG was waiting for money from the Italian government. I thought at the time it sounded like a ‘jack o nory’ (Story) … I was right it that respect. Another clear blatant lie from the CEO. My instincts were to sell after the last AGM, which didn’t instil confidence, especially the CFO, she was extremely nervous during her pitch imo. Best of luck all that hang on, but I’ve decided to take the loss on the chin and listen to my gut feelings !

Make that £100k buy at full ask ! Two separate transactions

£50k buy just landed at full ask. Have a feeling this is going to start moving soon, and very quickly

Not the RNS I was expecting. Looks like I may have called this incorrectly.

Over 70% of venues to invest in refurbs despite rising costs. Some 71% of hospitality operators are set to invest in venue refurbishments in the next year.

The survey was conducted jointly by UKHospitality, the British Beer & Pub Association, Hospitality Ulster and the British Institue of Innkeeping.

Revolution Bars Group starts takeover talks with potential buyers, 8 May 2024.

The group has decided a formal sales process could deliver a “better outcome for stakeholders” than a mooted restructuring.

Rob Pitcher joined Rev Bars Group in June 2018, his tenure was for 6 years, due to expire June 2024. He also holds a position of Director at U.K. Hospitality Ltd.

Banburyboy, my opinion and nothing more …

I believe the current board have played a good hand securing financing for the restructuring plan. This has created the opportunity for the company to be offered for sale without being a ‘distressed seller’. If a suitor wants to buy the company they will have to pay ! (Not steal out of administration)

I believe the current board will sell at the right price, remember a number of them were purchasing shares 5p, 6p, 7p over the last year - clearly they saw value in the company.

Eldose Babu the largest shareholder was aggressively purchasing shares 5p -5.5p in December.

The restructuring plan would suit Luke Johnson and the other two investment vehicles. At present they do not have the final say here, they will have in September if a sale doesn’t happen and the restructuring plan goes ahead - My opinion is a sale will happen, the restructuring plan will not happen, which is not a given anyway (subject to court approval)

The bank will have significant influence as to the direction of travel here. Their priority will be to have their money repaid, the outstanding debt. A sale at the right price will be the safest and quickest way for this to happen.

I do find it interesting the SP hasn’t moved on news of 32 potential suitors signing a NDA (and Nightcap disclosing their interest) . Shares in other companies would have risen significantly on this news alone. I am however quite pleased about this as it removes the temptation to sell at a price which may be regretted.

I believe the SP will open significantly higher one morning on news of a formal offer being received (an offer will happen without doubt imo). I see the SP opening one morning significant higher than the 2.99p you were contemplating selling at, purely my opinion.

Revolution Bars Group, the struggling AIM listed pubs and bar operator received 42 serious expressions of interest in buying assets either brands or assets, of which 32 signed confidentiality agreements.

We are going to wake up one morning and the SP will be significantly higher imo. I am of the opinion the entire business will be sold, originally I thought between 5p - 5.5p a share, could be higher with the amount of interest generated. 32 signed confidentiality agreements is extremely positive.

Banburyboy, Net Bank Debt was £21.8 million at 10 April 2024, not £28m.

PE firms also circling.

Also keep in mind Eldose Babu significantly purchasing shares in December 5p -5.5p region.

I’m of the opinion a bid of around 5p-6p is received, and excepted. Lower bid initially which is rejected and subsequently increased by 30%. Is usually the way these events unfold.

Open Offer to Qualifying Shareholders of Revolution Bars Group plc of 7 New Ordinary Shares per 8 existing Ordinary Share.

Applications together with payment in full must be received no later than 11.00 am on 30 April 2024

I am expecting the SP to naturally rise back to 3p, where we were before Sky news leaked the company in talks about fundraising. SP was False drop to 1.2p on fear of administration. Ask yourselves who leaked the info to Sky News, reported to be an investor. That investor knew the SP would tank on such news, giving them their 1p price per share if the fundraising goes ahead. Now that’s been agreed, SP can return to where it was just a week ago. Higher the SP now the better for the three new investors, a higher SP may put off a potential offerer in their eyes. Win win now for the three new investors, some of us may still win here also.

Banburyboy, I think the bank will have the final say here, not the three new investors. Will be sold before we get to September imo.

I also can’t get Eldose Babu out of my mind. I wouldn’t be surprised if he and his family feature here with an offer for the company. As we know Eldose was aggressively buying in December taking his shareholding to 17%, paying 5p a share. We learn this week that another family member has also been buying and holds 1.7%. I am of the opinion this was strategic buying in December, I refuse to believe an investor of this magnitude buys up 17% of a company on a whim. Time is on our side. This is going to get interesting imo

It isn’t particulate clear. However, the rights issue may never happen. . If there is a buyer and we are not holding we will miss out. I am confident we will receive an offer for the company, I therefore am choosing to hold.. I noticed Young & Co took a holding recently. They purchased City Group in December. They have enough finance behind them, and Rev Bars is currently cheap imo.

Last post from me for a while, going to sit back and see how events unfold. I would be happy with a part sale or full sale of the business, at the right price, and there is a possibility this may happen.

There is also a possibility Luke Johnson may get involved, interesting Rev Bars decided to name him in the recent RNS. Mr Johnson has significant experience in the hospitality industry, and especially for turning companies around. Any PI that hasn’t already done so should take a few moments to read up on Luke.

To suggest suppliers will now want money up front from Revolution is naive at best in my opinion. Rev Bars have not defaulted on any payments, why would suppliers therefore change their payment terms. Rev Bars increased turnover last year by £11.8 million to £152.6 million. £152 million is a significant amount of alcohol and food. Distributors (suppliers) to the Hospitality Industry will be facing their own challenges. Suppliers to Rev Bars will not want to lose the business, along as the current terms are being met. If anything, if approached to do so, it wouldn’t surprise me if certain distributors would reduce their margins and lower costs to keep the business, after all the supply to 58 bars and 22 pubs I would suggest would be a significant account to have.

Dom-Bella, it is my opinion your posts are deliberately negative, each and every one, in an attempt to present yourself an opportunity to buy in at a lower SP. I do not have a problem with that, we all have our own investing strategies. I was hoping for constructive conversation when asking posters their opinion on why Eldose was heavily buying in December. It is unintelligent to suggest an investor of his magnitude wasn’t aware of the rising costs approaching in 2024, namely business rates and payroll costs. This would not have just come as a surprise in the last 3 months as you are suggesting, it was widely known costs were to increase from the start of April 24. There was a good reason Eldose decided to buy up 16% of the companies shares. You and I do not know the reason, I do wonder however if this will come to light over the course of the next few months.

I’m sitting tight, hopeful that part or all of the business will be sold. I commented in December that I thought part of the business (excluding Peach Pubs) would be sold. There is hope. Eldose Babu was buying heavily in December, the last purchase on 21st Dec was over 5p a share and took the holding to over 16%. As an investor of this magnitude he would have done due diligence. I can’t get my head around the heavy buying from Eldose in December at 5p a share, fast forward just 3 months to 1p a share. Surely Eldose hasn’t just thrown over £1millon away in less than 3 months ! Surely he knows more than us pi’s ! What do others think ?

I wouldn’t be surprised to see a takeover offer. Stonegate offered just over £100 million which Revolution rejected. This was in 2017, before the pandemic, but still shows how undervalued this currently is at £6.5 million MCap. I think for the right offer Revolution would consider selling the Bars to focus on the Peach Pubs / food side of the business themselves. Slightest whiff of an interest and the SP flys imo.