Interim Results – period to 31 December 2016
CEO
Mark McQuater
CFO
FC
Chris Chambers
Andrew Chard
REVOLUTION BARS GROUP PLC
Contents
>
Introduction
>
Highlights of H1
>
Financial results
>
New opening programme
>
Digital Strategy Growth
>
Innovation
>
Summary
Revolution Bars Group PLC Interim Results – ended 31 December 2016
2
REVOLUTION BARS GROUP PLC
Introduction
>
Differentiated premium branded UK bar-restaurant group
>
Growth business with Sales and PBT growing
•
Sales +12.7%
•
Adjusted EBITDA +13.6%
>
High returns of 38% from openings post IPO
>
Disciplined operating model is continuing to deliver:
•
Like for like sales +2%
•
Strong Christmas trading
>
Increased expected opening number for FY17 (5 to 6)
>
Future growth pipeline increased again in H1 – now 26 deals
3
Revolution Bars Group PLC Interim Results – ended 31 December 2016
REVOLUTION BARS GROUP PLC
Financial results: income statement summary
FY17
£m
FY16
£m
%
change
Revenue
66.7
59.2
+12.7%
Gross profit
50.6
45.0
+12.4%
75.9%
76.0%
9.2
8.1
13.8%
13.7%
5.5
5.0
PBT % *
8.2%
8.4%
Adjusted EPS *
9.1p
8.5p
Gross margin %
Adjusted EBITDA *
EBITDA % *
Adjusted PBT *
Dividend per share
1.65p
>
Revenue +12.7% +£7.5m
• LFL sales +2.0%
>
Gross margin maintained year on
year
>
PBT conversion 8.2%
>
EPS up +7.1%
>
Interim dividend of 1.65 pence
+13.6%
+10.0%
+7.1%
1.50p
per share +10.0%
* Adjusted profit measures exclude exceptional items and non-recurring opening costs (FY17: £0.8m, FY16: £0.3m)
Revolution Bars Group PLC Interim Results – ended 31 December 2016
4
REVOLUTION BARS GROUP PLC
Financial results: site EBITDA
Operating expenses
FY17
£m
% sales
FY16
£m
>
Revenue
66.7
59.2
Gross profit
50.6
75.9%
45.0
76.0%
Site gross profit
48.4
72.6%
43.1
72.8%
Site payroll
(15.3)
22.9%
(13.3)
22.5%
Other site costs
(15.2)
22.7%
(14.0)
23.6%
Site EBITDAR
17.9
26.8%
15.8
26.7%
Rent
(4.7)
7.1%
(4.4)
7.4%
Site EBITDA
13.2
19.8%
11.4
19.3%
Revolution Bars Group PLC Interim Results – ended 31 December 2016
Strong performance by the whole estate
% sales
•
Impact of new sites
•
No tail
>
Site gross profit 72.6%
>
Site EBITDAR +10bps despite increased site
payroll for new openings in H1.
>
Rent at 7.1% as we continue to leverage the
cost base (down from 8.4% of sales in FY13)
5
REVOLUTION BARS GROUP PLC
Financial results: cash flow statement
FY17
£m
FY16
£m
Profit after tax from operations
3.9
4.0
Tax expense
0.8
0.7
Depreciation of property, plant and equipment
3.7
3.1
(2.1)
(2.8)
6.3
5.0
(2.5)
(3.4)
3.8
1.6
Development capital expenditure
(4.4)
(4.4)
Equity dividend paid
(1.7)
(0.8)
Loan drawdown
4.5
2.5
Increase / (decrease) in cash and cash equivalents
2.2
(1.1)
Opening cash and cash equivalents
2.8
2.7
Closing cash and cash equivalents
5.0
1.6
(5.0)
-
-
1.6
>
Cash flows from operating activities
Working capital movement
Net cash flows generated from operating activities
Maintenance capital expenditure
Free cash flow
Closing RCF facility
Closing Net Funds/(Debt)
Revolution Bars Group PLC Interim Results – ended 31 December 2016
£3.8m free cash flow generated from
operating activities
>
£2.5m maintenance in the year, well-invested
estate
>
Development capital expenditure £4.4m
>
Net of RCF, nil net debt
6
REVOLUTION BARS GROUP PLC
4 New bars successfully opened in first half of FY 2017
Stafford
>
4 New Revolucion de Cuba bar
restaurants
Nottingham
Aberdeen
Harrogate
Milton Keynes
Reading
Aberdeen
>
All trading to expectations
>
Significant pro forma contribution
>
Low average rent of £120k per new
unit
Leeds
Reading
Liverpool
Revolution Bars Group PLC Interim Results – ended 31 December 2016
Glasgow
Harrogate
Aberdeen
7
REVOLUTION BARS GROUP PLC
Reading case study
Stafford
Nottingham
>
Reading
Aberdeen
Aberdeen
Harrogate
Milton Keynes
Two floor city centre trading
operation
Leeds
Reading
>
In the heart of the traditional circuit
>
CAPEX: £1.3m
>
Opened November 2016
Glasgow
Harrogate
>
Liverpool
>
Revolution Bars Group PLC Interim Results – ended 31 December 2016
EDA: 5,700 sq ft
Average ROI 38%
Aberdeen
8
REVOLUTION BARS GROUP PLC
Confirmed Opening programme for FY17 increased to 6 new openings in FY17 with
Southend-On-Sea and Torquay opening in H2 (currently on site with both units)
Stafford
Southend-On-Sea – Revolution
Nottingham
Torquay – Revolution
Milton Keynes
Leeds
Liverpool
Revolution Bars Group PLC Interim Results – ended 31 December 2016
9
REVOLUTION BARS GROUP PLC
New site deals being worked continues to grow
 More new site deals being worked on creating
26
February 2017
a growing scale of pipeline
21
October 2016
 Complexity of permissions needed means RBG
units when opened have barriers to entry
15
October 2015
 RBG has outstanding track record with
7
March 2015 (IPO)
0
authorities
20
New Sites
40
 Strong, experienced and ehanced property
team
Revolution Bars Group PLC Interim Results – ended 31 December 2016
10
REVOLUTION BARS GROUP PLC
RBG brands working well in smaller affluent locations and market towns
Stafford – Revolution
Harrogate – Revolucion de Cuba
 Customer EDA: 3,900 sq ft
 Customer EDA: 3,100 sq ft
 CAPEX: £0.9m
 CAPEX: £0.8m
11
Revolution Bars Group PLC Interim Results – ended 31 December 2016
Target market methodology: Affluent suburbs, cities with post-recession investment and towns with
major new developments.
REVOLUTION BARS GROUP PLC
Constant innovation keeps differentiated customer proposition strong and drives like
for like sales
>
New Vodka contract Ketel One – super premium
>
Pre-bookings for Christmas ahead of last year
>
Increased team size in H2
>
Premium cocktails – Largest category grown 10% in
FY17
>
New food specials range & fresher food content
>
New APP ready for market testing
>
Bookings, loyalty and payment
Revolution Bars Group PLC Interim Results – ended 31 December 2016
12
REVOLUTION BARS GROUP PLC
A leading sector player in digital market growth
>
Pre-booked occasions and digital customer
interaction growing
>
Digital marketing grown significantly
>
•
Facebook Fans 756,859 (Up 22%)
•
Website visits 2,192,076 (Up 26%)
•
Database of 1,177,239 customers
Digital bookings have grown +20% with new CRM
Revolution Bars Group PLC Interim Results – ended 31 December 2016
13
REVOLUTION BARS GROUP PLC
Real Market opportunity
RBG proven operating model
Like for like
sales
New sites
Digital
marketing
and
engagement
Bolt on
accelerated
pipeline
Revolution Bars Group PLC Interim Results – ended 31 December 2016
14
REVOLUTION BARS GROUP PLC
Summary

Finely tuned operating model delivering:
•
10%+ sales growth
•
Increase in roll out
•
Increase in cash flow and dividend

Strong ROI track record

Outperformed from IPO

Market opportunity growing

Future trading
15
Revolution Bars Group PLC Interim Results – ended 31 December 2016
REVOLUTION BARS GROUP PLC
FORWARD-LOOKING STATEMENTS
FORWARD-LOOKING STATEMENTS
This presentation contains various statements and graphic representations (together, ‘forward-looking
statements’) that reflect management’s current views and projections with respect to future events and
financial and operational performance. The words ‘target’, ‘objective’, ‘growing’, ‘scope’, ‘platform’, ‘future’,
‘forecast’, ‘expected’, ‘estimated’, ‘continuing’, ‘potential’ and similar expressions or variations on such
expressions identify certain of these forward-looking statements.
Others can be identified from the context in which the statements or graphic representations are made.
These forward-looking statements, as well as those included in any other material discussed as part of this
presentation, involve known and unknown risks, uncertainties, assumptions, estimates and other factors,
which may be beyond the Company’s control and which may cause actual results or performance to differ
materially from those expressed or implied from such forward-looking statements.
All statements (including forward-looking statements) contained in this presentation are made as of the date
of this presentation and the Company disclaims any obligation to update any forward-looking statements,
whether as a result of new information, future events or results or otherwise. There can be no assurance
that forward-looking statements will prove to be accurate, as actual results and events could differ materially
from those anticipated in such statements. Accordingly, readers should not place undue reliance on any
forward-looking statements due to the inherent uncertainty therein.
Revolution Bars Group PLC Interim Results – ended 31 December 2016
16
REVOLUTION BARS GROUP PLC
APPENDIX
Financial results: income statement summary (continued)
FY17
£m
FY16
£m
5.5
5.0
(0.8)
(0.3)
4.7
4.7
-
-
4.7
4.7
(0.8)
(0.7)
3.9
4.0
Adjusted operating profit*
- non-recurring opening costs
Operating profit
Finance costs
Profit on ordinary activities before tax
Tax on ordinary activities
Profit on ordinary activities after tax
Dividend proposed
1.65
1.5
EPS (pence per share)
7.8
8
Adjusted EPS* (pence per share)
9.1
8.5
Effective rate of tax
£m
Profit on ordinary activities before tax
add back: opening costs
Adjusted profit before tax
Tax at standard rate (20%)
3.9
0.8
4.7
0.9
Capital allowances in excess of depreciation
Effective tax charge
17%
Earnings per share (EPS)
£m
Profit after tax
Weighted average number of shares
3.9
50,000,000
EPS (pence per share)
7.8
FY17
£m
FY16
£m
Profit before tax
add back: opening costs
4.7
0.8
4.7
0.3
Adjusted profit before tax
5.5
5.0
(0.8)
(0.7)
4.7
4.3
50,000,000
50,000,000
9.1
8.5
Tax on ordinary activities
Adjusted profit after tax for EPS
Adjusted number of shares
Adjusted EPS (pence per share)
Revolution Bars Group PLC Interim Results – ended 31 December 2016
0.8
Effective tax rate
Adjusted EPS
* Adjusted profit measures exclude exceptional items and non-recurring opening costs
(0.1)
17
REVOLUTION BARS GROUP PLC
4 New bars successfully opened in first half of FY 2017
Site
Brand
Investment
Size (EDA sq.
Notes
ft.)
Harrogate
Revolucion de Cuba
£0.8m
3,100
Open October 2016
Aberdeen
Revolucion de Cuba
£1.4m
5,200
Open November 2016
Reading
Revolucion de Cuba
£1.3m
5,700
Open November 2016
Glasgow
Revolucion de Cuba
£1.3m
4,300
Open December 2016
Revolution Bars Group PLC Interim Results – ended 31 December 2016
18