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Revel Collective PLC said Friday it will conduct a strategic review, which includes a formal sales process, following what it called a ‘continued period of external challenges’ affecting trading. Shares in Revel Collective plunged 27% to 0.20 pence late on Friday morning in London. The Manchester, England-based operator of pubs and bars under the Revolucion de Cuba, Revolution and Peach Pub brands said revenue was lower than the amount anticipated in its pre-close statement for the year ended June 28. Revenue for the first quarter of financial 2026 was £26.3 million, down 7.4% on a like-for-like basis compared to a year before. This was primarily due to a 10.5% reduction in like-for-like sales in its bar business, the company said. Revel Collective attributed this to ‘fragile’ consumer sentiment, particularly among younger customers who ‘continue to be some of the hardest hit by the cost-of-living crisis’. Revel Collective said actions to reduce costs and increase margins had not been ‘sufficient to mitigate the negative impact of the Autumn Budget’, pointing to the increase in employer National Insurance contributions, minimum wage and a duty on spirits. The company said the warm weather compounded these adverse factors on the high street bar business. Net debt grew 15% to £25.3 million at September 30, from £22.1 million at June 30. Revel Collective said it expects a significant profit contribution from the festive trading period. However, it warned that due to the quieter January and February months for the sector, it would need additional funding early in 2026 to stay within banking limits. Advised by Cavendish and FTI Consulting, Revel Collective said it is considering a range of options, including a sale of the business or its brands, though it is not currently in talks with any potential offerer. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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