Revolution Bars Group (RBG) : Corp

Good H1 pre-close; management actions delivering

Key data

  • Share price (p) 84.5
  • Target price (p) 120.0
  • Market cap (£m) 42.3
  • Enterprise value (£m) 57.2

RBG has delivered a strong trading performance over Xmas/New Year’s Eve (+4% LFL sales growth in the key 4 weeks to Dec 31), supporting H1FY20 LFL’s sales growth of +1.2%. A steady improvement was seen over the six-month period, and represented a sequential upswing on Q1FY20’s +0.7%. This improved performance is consistent with our unchanged FY20 adj EBITDA forecast of £12.3m (following negative forecast momentum during most of FY18/19), and a first important milestone in RBG’s broader revitalisation programme to drive the company to a stronger competitive position. Central to the RBG investment case is driving a sustained recovery in LFL sales. The initial benefits of management actions appear to be driving the basis of such a recovery. So far, so good.

Peter Smedley 020 7220 0548 psmedley@finncap.com

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