Good morning, it's Paul here with the SCVR for Thursday.

It's busy for updates today. I'll start with 3 companies in which I have long positions, as obviously I read the updates that affect me personally first thing. Newer subscribers may not be aware that I'm primarily a professional investor (since 2002), doing writing as a sideline.

Today's report is now finished.


Revolution Bars (LON:RBG)

Share price: 20.4p
No. shares: 50.0m
Market cap: £10.2m

(I hold a long position in this share)

Completion of banking documentation

You might recall that this operator of 74 town centre late night bars, surprised on the upside 2 days ago, with an update that its bank (Nat West) is being supportive, thus eliminating (for now anyway) the need for an equity raise. Being long of the shares myself, (this is now my biggest position in my trading account), I'm delighted that it seems the company won't need to dilute me at this stage, thanks to bank support.

Today RBG confirms that the bank paperwork has all been finalised;

Revolution Bars Group plc (the "Group"), a leading UK operator of 74 premium bars, trading under the Revolution and Revolución de Cuba brands, confirms that it has now executed final documentation with its lending bank, Natwest to increase its revolving credit facility to £30.0m until 31 August 2020, as further detailed in the Group's announcement of 14 April 2020.

Here at Stockopedia we've provided a range of opinions on this share this week;

  • Graham - sounded very negative here
  • Paul (me) - positive, whilst acknowledging it's risky, in the same article, in the reader comments section
  • Jack - seemed middling, leaning to slightly positive, in his excellent article here

It's good to have confirmation that the increased overdraft documentation has been executed, which should make the necessary larger facility available. This buys RBG time to tread water until the lockdown is lifted, hopefully soon.

As mentioned in yesterday's article, after reading the OBR report on the likely cost of lockdown, I am increasingly convinced that the Govt has little option but to phase in a lifting of the lockdown relatively soon. That's starting to happen in other countries too. Hence there are really 2 unknowns with RBG at the moment;

1. When will lockdown be lifted for bars? Currently RBG is generating nil revenues, but has costs…

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