Good morning, it's Paul here.

Just to clarify, for any new subscribers who may not be aware, this is was a placeholder article, which is posted early every weekday, so that readers can add your comments from 7am on RNSs. Then I update the article section by section throughout the morning. Official finish time is 1pm, when the SCVR email goes out, by which time the bulk of the report is usually done. If I have spare time, I then add more sections on some days in the afternoons, which is bonus content that I'm doing in my own time.

Many thanks for the smashing positive feedback yesterday, I really appreciate it!

Today's report will focus initially on Revolution Bars (LON:RBG) because this is one of my big 4 personal holdings. Once I've got my head around that, then I'll look at other companies reporting on trading.

Estimated time of completion today is 2 pm

Update at 14:05 - today's report is now finished.

Revolution Bars (LON:RBG)

Share price:  88.8p (up c. 7% today, at 09:25)
No. shares:  50.0m
Market cap:  £44.4m

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

Trading update

Revolution Bars Group plc ("the Group"), the leading operator of premium bars trading across the UK under the Revolution and Revolucion de Cuba brands, is today providing a trading update for the 26 weeks ended 28 December 2019 ("H1 FY20") and also for the important Christmas trading period through to and including New Year's Eve.

Background - this is a turnaround situation under new-ish (18 months), operationally focused management. The share price lost two thirds of its value, after the aborted 203p cash takeover bid from Stonegate, as investors clearly didn't believe the turnaround was likely to work.

What went wrong?

  • Old management too focused on expansion roll-out of new sites, took their eyes off the ball on existing sites
  • Brain drain of key site managers & area managers - led to demotivated staff, high staff turnover, and hence deteriorating performance
  • Distraction of protracted bid process from Stonegate at 203p per share, and interference from nightclubs operator Deltic
  • Older sites became tatty, as refurbishment cycle delayed
  • Competition intensified
  • Cost headwinds

Action taken

  • Expansion halted
  • Dividends stopped for the time being to focus on debt reduction
  • Numerous…

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