Investors cheer rent deal for Revolution as it closes six bars
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REVOLUTION BARS’ stock jumped to levels last reached in August yesterday, on approval of a company voluntary arrangement restructure plan.
The operator of 72 bars across the UK said it will close six of its sites after being saved by its creditors and landlords, with 88pc voting in favour of the plan. It is burning through £400,000 a week.
Reduced rental terms have also been agreed for seven other bars, which are now subject to turnoverbased rents with a minimal rental threshold through the two-year CVA period.
Mike Foster, chief financial officer, said he will not seek re-election at its forthcoming annual meeting on Dec 22.
In a filing, the company said it was “very encouraged” by news of a vaccine potentially being available by Christmas, “which suggests revenue generation may return to more normal levels through the course of 2021”.
Rob Pitcher, chief executive, said: “I’m grateful for the support of our creditors in approving the CVA, providing the opportunity for the business to move forward with much greater certainty for all.”
Shareholders welcomed the news, with its shares rising 1.2p to 17.2p.
The FTSE 100 recorded its best weekly gains since April, despite pulling back to sit firmly in the red during the final two sessions to reverse eight days of gains.
The benchmark dropped 22.55 points to 6,316.39 yesterday, though it added more than 300 points through the week. Equities slipped after rallying on the back of positive Pfizer vaccine news, as the focus shifted to a more negative near-term outlook amid surging virus cases on both sides of the Atlantic. Speculation ensued that tougher restrictions could be in the pipeline.
Vodafone spiked in late trading to its highest level since August, after Bloomberg reported the telecoms giant is considering raising about €4bn (£3.6bn) from an initial public offering of its European towers unit – Vantage Towers – in Frankfurt early next year.
The deal could value the business at around €20bn, including debt, making it the largest flotation on a European exchange for more than three years.
The FTSE 100 firm closed up 1.26p at 119.52p.
Construction contractor Galliford Try was also in the green, climbing 21.4p to 103.6p, after it forecast a return to profitability in the first half of this financial year and the resumption of a dividend with the interim results. It said all projects have been fully operational since the start of its financial year on July 1, and productivity is nearly back to normal levels. Its average month-end cash position is towards the upper end of previous guidance of £125m to £145m.
Aim-listed lithium development company Bacanora Lithium jumped 3p to 35p after its Chinese trading partner more than doubled its stake in its flagship project in northwest Mexico, which should start producing in 2023.
Cornerstone investor Gangfeng Lithium – China’s largest lithium provider – will invest £21.8m to increase its stake from 22pc to 50pc.
telegraph.co.uk/ business-briefing