REG - Nightcap PLC - Assignment of Dirty Martini leases

NightcapAnnouncement

09/11/2023 07:00

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RNS Number : 8494S  Nightcap PLC  09 November 2023

9 November 2023

 

Nightcap plc

("Nightcap" or the "Company")

 

Assignment of Dirty Martini leases

 

Further to the Company's announcement on 9 June 2023, Nightcap (AIM: NGHT),
the owner of The Cocktail Club, the Adventure Bar Group, Barrio Familia and
the Dirty Martini group of bars, announces that it has completed the process
of assigning the Dirty Martini leases from the administrator, Leonard Curtis
Recovery Limited (the "Administrator").

When Nightcap acquired certain assets of DC Bars Limited and Tuttons Brasserie
Limited, the operator of the 'Dirty Martini' chain of cocktail bars and
Tuttons Brasserie, a critical part of the process was securing the assignment
of leases for the key sites from the Administrator, with the consent from the
relevant landlords.

The Company is pleased to announce that this process has now been successfully
completed and Nightcap will continue trading in nine of the ten sites
previously operated by DC Bars Limited.

Eight out of ten leases have been assigned on existing terms (only subject to
rent reviews) and these assigned leases have expiry dates between 2030 and
2047.

One site previously operated by DC Bars Limited has not been assigned.  This
is the Hanover Square site, where the Company could not agree with the
landlord on reduced rental costs to make the site profitable, and therefore no
agreement could be reached to keep trading at the site.

The Company has entered into a new three year lease for the Tuttons restaurant
and Dirty Martini Covent Garden site. This lease covers a restaurant lease as
well as the small downstairs cocktail bar. The new lease is on considerably
more favourable commercial terms and is in line with Nightcap's objective to
not remain as a restaurant operator in the long term.

The completion of the assignments secures 95% of the historic £23.7 million
of aggregated annual revenue and all of the historic £3.9 million annual site
EBITDA, based on DC Bars Limited's and Tuttons Brasserie Limited unaudited
management accounts for the year ended 31 December 2022.

The Company will make a further announcement in due course in relation to
deferred consideration for the acquisition.

 

Sarah Willingham, Chief Executive Officer of Nightcap, commented:

"The successful assignment of all of the important and profitable Dirty
Martini leases completes the acquisition of Dirty Martini and preserves the
majority of historic revenue and EBITDA which is the outcome we have worked
hard to achieve since the acquisition in June 2023.

"We are exceptionally pleased with how well the staff across the Dirty Martini
estate have embraced becoming part of Nightcap and we are excited by what the
brand has brought to Nightcap, both in terms of great locations as well as the
overall high quality of the estate."

 

For further enquiries:

 Nightcap plc

 Sarah Willingham / Toby Rolph / Gareth Edwards                     email@nightcapplc.com (mailto:email@nightcapplc.com)

 Allenby Capital Limited (Nominated Adviser and Broker)

 Nick Naylor / Alex Brearley / Piers Shimwell (Corporate Finance)

 Jos Pinnington / Amrit Nahal (Sales and Corporate Broking)         +44 (0) 20 3328 5656

                                                                    www.allenbycapital.com (http://www.allenbycapital.com/)

 Bright Star Digital (PR)                                           https://www.brightstardigital.co.uk/ (https://www.brightstardigital.co.uk/)

 Pam Lyddon                                                         +44 (0) 7534 500 829

                                                                    pamlyddon@brightstardigital.co.uk (mailto:pamlyddon@brightstardigital.co.uk)

 

 

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