REG - Nightcap PLC - Trading Update

NightcapAnnouncement

11/01/2023 07:00

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RNS Number : 3146M  Nightcap PLC  11 January 2023

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.

 

11 January 2023

 

Nightcap plc

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

 

Trading update for the 26 weeks ended 1 January 2023

 

Trading update

Nightcap (AIM: NGHT) is pleased to announce a positive trading update for the
13 and 26 weeks ended 1 January 2023, with record trading weeks across the
Group, despite the significant train strikes held across the UK during the key
Christmas trading weeks.

13 weeks ended 1 January 2023 ("Q2 FY2023")

Nightcap delivered another quarter of strong growth. Unaudited Group revenue
was £12.9 million for Q2 FY2023, resulting in a 60.9% increase compared to
Group revenue of £8 million for Q2 FY2022 and a 4.7% like-for-like* increase
compared to the same period in FY2022.

Group revenue for the month of December 2022 was £5.9 million, resulting in a
71.8% increase compared to Group revenue of £3.4 million for December 2021
and a like-for-like* increase of 27.6%.

26 weeks ended 1 January 2023 ("H1 FY2023")

Unaudited Group revenue was £23.2 million for H1 FY2023, resulting in a 49.2%
increase compared to Group revenue of £15.6 million for the equivalent period
in FY2022. Revenue for this 26-week period represents a 5.8% like-for-like*
decrease compared to the equivalent period for FY2021, primarily due to the
significant rail strikes in the period and a 10.1% like-for-like* increase
compared to the equivalent period in FY2019.

Site openings

Nightcap continued its strong organic growth during H1 FY2023, seeing six
successful new site openings across three of its key brands, taking its total
number of bars to 36. Two The Cocktail Club bars were opened, in Birmingham
during September 2022 and in Canary Wharf during October 2022. The Group also
opened two Tonight Josephine venues, in Bristol during September 2022 and in
Liverpool during October 2022. H1 FY2023 also saw the first two Barrio
openings since acquisition, in Covent Garden and in Watford, both having
opened during October 2022.

Further to the details in the Group's annual report and financial statements
for the 53-week period ended 3 July 2022, the Group has closed The Cocktail
Club's site in Bethnal Green, London, by way of a creditors' voluntary
liquidation process of the relevant Group subsidiary. The site is a legacy
site which was used as the initial Nightcap training academy and was therefore
not trading to the public at the time of closure. Three of Nightcap's
Directors, being Michael Toxvaerd, Sarah Willingham and Toby Rolph, are
currently directors of The Craft Cocktail Company Limited which is the
subsidiary that holds the lease. The closure of the Bethnal Green site will
have a small positive impact on the Group's future trading.

Cash

The Group's cash position (including cash in transit) as at 1 January 2023 was
£5.5 million. At the same date, the Group had total bank debt of £9.6
million resulting in a net debt position of £4.1 million. £0.75 million of
the Group's total bank debt is scheduled for repayment during FY2023. As noted
in the annual report and financial statements for the 53-week period ended 3
July 2022, the Group has an interest rate cap on the reference base rate
(SONIA) fixed at 3% on £7.8 million out of £9.6 million of its total HSBC
bank facility.

Current trading and prospects

The Group has started 2023 with a portfolio of bars that continues to prove
very popular with its target customers.  The Board looks forward to the
second half of the financial year with confidence and in the absence of
further rail strikes or other major interruptions the Board expects the Group
to trade in line with management's expectations.

The Company expects to announce the Group's interim results for the 26 weeks
ended 1 January 2023 in mid-March 2023.

Sarah Willingham, Chief Executive Officer of Nightcap, commented:

"As we approach our second anniversary since our IPO, I could not be prouder
of the entire Nightcap team. To achieve quarterly growth of 60.9% in revenue
and 4.7% growth on a like-for-like basis represents a monumental effort, not
least during a time when rail unions deliberately chose a number of the
biggest most important weeks and weekends for hospitality, for their series of
significant rail strikes, including the incredibly important Christmas weeks.

"During the first half of our current financial year we also successfully
opened another six phenomenal bars across the country, while also delivering
record breaking amounts of corporate Christmas parties and a New Year's eve
which was sold out across most of our 36 sites.

"This result is a testament to the resilience of our high disposable income
Millennial and Gen Z customers, who continue to enjoy social interactions in a
fun party atmosphere in our bars across the country."

 

* 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 / Toby Rolph / 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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