REG - Nightcap PLC - Record Christmas trading and trading update

NightcapAnnouncement

10/01/2024 07:00

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RNS Number : 1661Z  Nightcap PLC  10 January 2024

This announcement contains Inside Information for the purposes of Article 7 of
EU Regulation 596/2014 (which forms part of domestic UK law pursuant to the
European Union (Withdrawal) Act 2018).  Upon the publication of this
announcement this Inside Information is now considered to be within the public
domain.

 

10 January 2024

 

Nightcap plc

("Nightcap" or the "Company" or the "Group")

 

Record Christmas trading and update for the periods ended 31 December 2023

 

Trading update

Nightcap (AIM: NGHT), the owner and operator of 46 premium bars, is pleased to
announce a positive trading update for the four week 2024 Christmas period as
well as the 13 weeks and 26 weeks ended 31 December 2023, with record trading
weeks across several of the Group's sites.  This positive trading is despite
the ongoing challenges of train strikes, inflation and the cost of living
crisis.

Four week festive period ended 31 December 2023

Nightcap achieved a number of record revenue weeks during the important
Christmas period. Unaudited Group revenue for the four-week period ended 31
December 2023 was £7.4 million, a 65.7% increase compared to Group revenue of
£4.5 million for the equivalent period in 2022 and a like-for-like* increase
of 11.9%.

As a result, Nightcap's revenues for the entire of December 2023 were the
largest monthly revenues in its nearly three-year history since IPO, with
total December 2023 unaudited Group revenue of £9.2 million against £5.9
million for December 2022, an increase of 55.9% and a like-for-like* increase
of 4.6%.

13 weeks ended 31 December 2023 ("Q2 FY2024")

Nightcap saw another quarter of strong growth in Q2 FY2024. Unaudited Group
revenue was £18.0 million, resulting in a 39.0% increase compared to Group
revenue of £12.9 million for the equivalent period in FY2023 and a 5.9%
like-for-like* decrease compared to the same period in FY2023.

This represents a significant improvement in like-for-like* revenue
performance compared to Q1 FY2024, primarily driven by strong Christmas
trading alongside: the integration of the Dirty Martini bars; the Company's
PianoWorks collaboration; and a number of sites opened in the previous 12
months starting to show improved maturity profiles.

26 weeks ended 31 December 2023 ("H1 FY2024")

Unaudited Group revenue was £32.7 million for H1 FY2024, resulting in a 40.9%
increase compared to Group revenue of £23.2 million for the equivalent period
in FY2023. Revenue for this 26-week period represents a 10.0% like-for-like*
decrease compared to the equivalent period for FY2023.

Cash

The Group's cash position as at 31 December 2023 was £3.9 million (including
cash in transit of £0.9 million). At the same date, the Group had total bank
debt of £8.9 million resulting in a net debt position of £5.0 million
(excluding convertible loan notes). £1.0 million of the Group's total bank
debt is scheduled for repayment during FY2024.

The Company has reached agreement with the administrator of DC Bars Limited
and Tuttons Brasserie Limited to pay the full £0.5 million of deferred
consideration on the Dirty Martini acquisition following all conditions being
met. With £0.2 million paid in December 2023, the remaining £0.3 million
will be paid during Q3 FY2024. Details of the Dirty Martini acquisition were
announced on 9 June 2023.

The Company expects to announce the Group's interim results for the 26 weeks
ended 31 December 2023 in mid-March 2024.

Sarah Willingham, Chief Executive Officer of Nightcap, commented:

"I could not be prouder of the entire Nightcap team as we continue to build
the UK's leading premium bar group. To achieve half yearly growth of 40.9% in
revenue and 11.9% growth on a like-for-like* basis for the important four week
Christmas period is a monumental effort.

"2023 has been a volatile year, particularly in terms of the macro-economic
impact on the hospitality sector. The cost of living crisis, inflation and
rail strikes have significantly impacted our business and therefore it is very
welcome news that the majority of rail workers have reached an agreement to
end the rail strikes. It is also positive news that inflation is getting under
control, which is expected to result in interest rate cuts in 2024.

"These are elements that should start to positively impact disposable income
for our target customers during 2024.

"During the second half of 2023 we have transformed our management team whilst
focussing on the integration of acquisitions and improving our systems. We
expect to see the benefits of this integration and the synergies during the
coming year.

 

"We are a much larger business with the team and foundations in place for the
next stage of growth. We have set ourselves up to maximise our long-term
potential. I am so proud of what we have achieved and am very excited about
the future of Nightcap."

 

* Like-for-like revenue is same site revenue defined as revenue at only those
venues that traded in the same week in both the current year and comparative
reporting periods.

 

For further enquiries:

 Nightcap plc

 Sarah Willingham / Richard Haley / Gareth Edwards                          email@nightcapplc.com (mailto:email@nightcapplc.com)

 Allenby Capital Limited (Nominated Adviser and Broker)                     +44 (0) 20 3328 5656

 Nick Naylor / Alex Brearley / Piers Shimwell (Corporate Finance)           www.allenbycapital.com (http://www.allenbycapital.com/)

 Jos Pinnington / Amrit Nahal / Tony Quirke (Sales and Corporate Broking)

 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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