​Rhubarb Hospitality Collection's Profitable Turnaround

​Rhubarb Hospitality Collection's Profitable Turnaround

Posted by Emily on 14th Feb 2024

Rhubarb Hospitality Collection (RHC), a distinguished London-based caterer and restaurant operator, has triumphantly returned to profitability, according to its latest financial disclosures. With exclusive management of the food and beverage offerings at prestigious venues like the Royal Albert Hall, Sky Garden, Royal Ascot, and 22 Bishopsgate, RHC has showcased a significant turnaround. The company reported a turnover of £38.1 million for the year ending December 31, 2022, a sharp increase from £11.8 million in 2021, reflecting a strong recovery from the challenges posed by COVID-19 restrictions. This period saw RHC achieving a gross profit of £8.7 million and a pre-tax profit of £1.4 million, a notable rebound from a £3 million loss the previous year. Adjusted EBITDA also improved from a £1.9 million loss to £2.7 million in gains.

The Sky Garden © User:ColinWikimedia Commons

RHC's resurgence is further highlighted by its expansion into Germany, marking a strategic move into the European market. The company has announced its entrance into Hamburg by launching a South American-inspired restaurant, Elemente, and the Air Bar, enhancing its presence, including venues in New York and Berlin. This expansion is part of a broader strategy to cater to over five million people annually, extending RHC's reputation for excellence in hospitality.

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The company's revival and growth have been significantly supported by its Oak View Group (OVG) acquisition in June last year. OVG, a significant player in the sports, live entertainment, and convention industries, acquired RHC to elevate customer experiences worldwide. This acquisition led to RHC's bank debt repayment, including a £35 million Unitranche facility and an £8 million acquisition facility, alongside £8.4 million in loan notes and interest, thereby strengthening RHC's financial footing.

In addition to its financial achievements, RHC continues to innovate in the hospitality space, with new ventures like the Italian restaurant Larch at London's Sky Garden and its partnership at the 50-storey 8 Bishopsgate office tower. These developments underscore RHC's commitment to growth and excellence in hospitality services.

Royal Albert Hall, London - Nov 2012 Diliff, CC BY-SA 3.0, via Wikimedia Commons

The directors expressed confidence in the group's future, buoyed by the strong performance and significant contracts won in 2022. As RHC embarks on this exciting phase of expansion and profitability, it remains a testament to the resilience and strategic foresight in the hospitality industry.

We welcome your thoughts and comments below on Rhubarb Hospitality Collection's journey towards recovery and growth. How do you see these developments influencing the hospitality sector?

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