Nightcap (NGHT): Initiation - A heady cocktail

Edison Investment Research Limited Nightcap (NGHT): Initiation - A heady cocktail 15-Dec-2020 / 08:00 GMT/BST London, UK, 15 December 2020 Nightcap (NGHT): Initiation - A heady cocktail With the launch of Nightcap, entrepreneurial management with significant experience in developing successful bar groups is seizing a clear-cut opportunity to build a major drinks-led UK hospitality business. The increased availability of target sites at attractive rents, sharply reduced competition and shifting consumer preferences highlight extensive changes beneficial to Nightcap, which have only been accelerated and enhanced by COVID-19. London Cocktail Club (LCC) looks a strong first move for Nightcap as it is both popular and well-regarded in its own right - and highly scalable. This acquisition is likely to be just the start. As a base for assessing underlying profit without structural changes and COVID-19, LCC's pro forma EBITDA uses results for FY19, enhanced by efficiencies and site maturity, plus a full year for openings based on trading up to February 2020 and head office/one-off adjustments. For a total consideration of £7.5m, which assuming a pro forma EBITDA of £1.8m gives an exit EV/EBITDA multiple of 4.2x. Click here to view the full report. Subscribe to Edison's content to receive reports by email. All reports published by Edison are free-to-access and available on the website. About Edison: Edison is an investment research and advisory company, with offices in North America, Europe, the Middle East and AsiaPac. The heart of Edison is our world-renowned equity research platform and deep multi-sector expertise. At Edison Investment Research, our research is widely read by international investors, advisers and stakeholders. Edison Advisors leverages our core research platform to provide differentiated services including investor relations and strategic consulting. Edison is authorised and regulated by the Financial Conduct Authority. Edison is not an adviser or broker-dealer and does not provide investment advice. Edison's reports are not solicitations to buy or sell any securities. For more information please contact Edison: Richard Finch, [phone] Russell Pointon, [phone] [e-mail] Learn more at www.edisongroup.com and connect with Edison on:  LinkedIn  https://www.linkedin.com/company/edison-group- Twitter   www.twitter.com/Edison_Inv_Res YouTube   https://www.youtube.com/user/EdisonITV/videos Dissemination of a CORPORATE NEWS, transmitted by EQS Group. The issuer is solely responsible for the content of this announcement.

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