Revolution Bars : Interim results presentation FY23

©Revolution Bars Group | Strictly Private & Confidential

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©Revolution Bars Group | Strictly Private & Confidential

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©Revolution Bars Group | Strictly Private & Confidential

Multitude of external factors impacting consumer confidence

and costs in H1

• Overall, FY23 H1 LFL sales compared to 2019 were (9.4)%, impacted by a hot summer, postponed events and holidays, industrial action, and the cost- of-livingcrisis fuelled by the war in Ukraine
• Peach Pubs LFL sales have delivered +9.9% in H1 since acquisition compared to 2019
• Despite train strikes targeting peak Christmas trading, Corporate guests returned, setting a new LFL record of +10.3% pre-bookedrevenue compared to 2019
• Group LFL sales of +17.3% for the five weeks to 31 December, compared to the Omicron affected 2021 period
• FY23 H2 Group LFL sales have been (6.8)% to date, an improvement of +2.6%pts on the first half of the year
• The Group had £18.5 million net debt at the end of FY23 H1 following the Peach acquisition, compared to net cash of £4.1 million at the end of FY22

Strong corporate Christmas but with strikes affecting walk-in

guests, suppressed H1 results

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Navigating through macroeconomic headwinds to come out stronger

Interim Results - 26 weeks ended 31 December 2022

Turnaround since 2018

• Well invested estate following accelerated investment programme (24 refurbishments in last 18 months)
• Exited under-performing bars through lease surrenders, CVA, and refurbishment to new brands
• Diversified offering from original two brands to five through acquisition and in-houseinnovation
• Guest proposition deep dives for both original brands to create fun and memorable experiences
• Stronger management team in place with bar, pub and gastro-pubexperience
• Much stronger business compared to pre pandemic with our People, Practices, ESG and Guest metrics all at record levels

Challenging Environment

• Hospitality has been hammered by nearly three years of COVID restrictions and a multitude of external factors
• Cost-of-livingcrisis with high inflation resulting in lower discretionary spending. Rising costs a bigger threat than under COVID with government support withdrawn
• Industrial strike action on the railways affecting travel plans into city centres since June 2022
• Working from home having impact on footfall and traditional weekday post work nights out in city centres
• Britain's number of licensed premises had an 11% drop since March 2020, and a 4.5% drop in 2022 and forecast to fall below 100,000

Looking Forward

• Diversification of the business giving more daytime, early-eveningand outdoors trading space providing a natural hedge to our original brands
• Record Christmas pre-booked revenue, reflecting a return of Corporate guest confidence. Expectation that walk-intrade this Christmas will return
• New CRM platform has recently been implemented allowing us to optimise the 3.7 million guest database
• New revenue streams with accommodation, photobooth income, amusement & vending machine sales
• Investment in our sustainability programme has mitigated some of the utilities cost pressures
• Consumer confidence recovering from low, energy prices heading in the right direction

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