Revolution Bars implements cost saving programme, ups debt facility

British pub group Revolution Bars said on Tuesday that it had been rapidly implementing actions to help mitigate the impact of the temporary forced shuttering of its locations across the UK, including the furloughing of employees and an increase to the size of its NatWest debt facility.

Revolution said it had accessed the UK Government's Coronavirus Job Retention Scheme, enabling future retention of employment for its 2,775 furloughed employees, whilst also delivering a "considerable" payroll saving.

The AIM-listed firm also said its chief executive officer, chief financial officer and non-executive directors had all agreed to have their salaries reduced by 50% and stated that all PAYE and VAT payments from 18 March would be deferred for three months.

As a result, Revolution said its weekly running costs had been cut to about £400,000 per week.

Revolution also stated that a £21m facility with NatWest running to December 2021 had been upped to £30m until 31 August, subject to final documentation. Natwest also agreed to waive all financial covenant tests in March and June.

Chief executive Rob Pitcher said: "We welcome and are delighted with the additional support from Natwest at this difficult time. They have acted as a true partner to our business and this decisive action has enabled us to be another step closer to being well-positioned to emerge from this crisis."

As of 0945 BST, Revolutions shares had shot up 10.39% to 17p.