Good morning,

This is what I intend reviewing today;

Revolution Bars (LON:RBG) (in which I hold a long position) - preliminary results

Treatt (LON:TET) - trading update

SCS (LON:SCS) - preliminary results

DX (Group) (LON:DX.) - preliminary results - sorry, I ran out of time, so didn't get round to looking at this after all.

Revolution Bars (LON:RBG)

Share price: 123p (down 1.7% today, at 10:16)
No. shares: 50.0m
Market cap: £61.5m

(at the time of writing, I hold a long position in this share)

Preliminary results

Revolution Bars Group plc ("the Group"), a leading UK operator of 76 premium bars, trading under the Revolution and Revolución de Cuba brands, today announces its results for the 52 weeks ended 30 June 2018

Where to start with this?! This is a classic case of a share where some investors will see negatives, and others (including me) see a turnaround opportunity, with the negatives already priced-in to the share price.

Larger competitor, Stonegate, tried to buy RBG last year, with a 203p recommended cash bid. Very unusually, RBG's larger shareholders then turned down this bid, as undervaluing the company. I'm struggling to think of that happening before, as recommended bids are not usually recommended, unless management has agreed the terms with major shareholders. So a very unusual turn of events.


Why has the share price slipped so far down, from the 203p cash bid approach last year, to only 123p now? Partly it's the bid premium coming out of the price of course. But also, here is a list of the things that have gone wrong in the last year;

Management distraction from Stonegate (and Deltic) bid approaches - this is a perfectly valid point in my view - business is bound to suffer, if a small management team is spending a lot of time handling a takeover bid & other approaches.

Lack of leadership - the outgoing CEO (mark McQuater) left on 18 Oct 2017. The new CEO (Rob Pitcher) joined on 25 June 2018. So that's over 7 months without a proper CEO. Again, for a smallish business, that's bound to…

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