Last checked at 24 Jun 2016 08:22
Revolution Bars Group plc (LSE: RBG)
("the Company" or "the Group"))
Proposed acquisition
Revolution Bars Group plc (the "Group"), a leading operator of 62 premium bars across the UK, under the Revolution and Revolución de Cuba brands, today announces that it is in discussions regarding a proposed acquisition of four bars in Edinburgh (the "Target Assets") for an expected consideration of approximately £16m. In the financial year ended 26 April 2015, the Target Assets reported an aggregate site EBITDA of £3.3 million. The proposed acquisition, should it complete, is expected to be significantly earnings enhancing for the Group's financial year ending 30 June 2017, and would enlarge the Group's portfolio of bars and introduce a further brand, which the Directors believe to be capable of being rolled out to other sites, to the Group's portfolio.
The consideration is expected to be funded via new debt, a relatively small placing of new ordinary shares for cash and the issue of ordinary shares to the vendors.
Discussions are ongoing and, particularly in light of the results of the EU Referendum announced this morning, may or may not result in any transaction, whether as described above or at all, being agreed.
A further announcement will be made when appropriate.
Current trading
The Group continues to trade well in the second half of the financial year ending 30 June 2016 following its strong performance in the first half. The site opening programme for the financial year ending 30 June 2017 is progressing ahead of schedule.
24 June 2016
Revolution Bars Group plc
Mark McQuater, CEO 0161 330 3876
Instinctif Partners
Justine Warren / Matthew Smallwood 020 7457 2020