Trading update

RNS Number : 1343R

Nightcap PLC

03 November 2021

 

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.

3 November 2021

Nightcap plc

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

Trading update

Board expects results for 53 weeks ending 3 July 2022 will be significantly ahead of current market expectations

Nightcap (AIM: NGHT) is pleased to announce that following the very positive trading period during the 13-weeks from 28 June to 26 September 2021, the Board expects that the Group's results for the 53 weeks ending 3 July 2022 will be significantly ahead of current market expectations.

This trading update is being given ahead of the announcement (scheduled for 15 November 2021) of the Group's results for its financial year ended 27 June 2021.

The first 13 weeks of the new financial year have started strongly. Pent-up demand and disposable income built-up during lock-down has seen significant demand for experiential socialising across all the Group's cocktail bars, inside and outside of London. 

Nightcap is pleased to report unaudited total net sales, per its management accounts, for the 13-week period of the new financial year of 7.6 million. This is a 68% increase compared to the same period in 2019, when there were no COVID-19 restrictions. The London Cocktail Club ("LCC") increased total net sales by circa 55% over 2019 and Adventure Bar Group ("ABG") by circa 75%.  Like for like* sales at LCC were up 52% when compared to 2019 and like for like ABG sales were up 24% for the same period in 2019.

The Group's balance sheet is solid, with cash at bank of 12.2 million as at 26 September 2021.

Taking this ongoing strong performance of the Group's bars since the reopening of indoor hospitality into account, together with a strong pipeline of site openings and the levels of Christmas bookings, the Board remains confident about the Company's financial year ahead.

* a measure of growth in total net sales for sites that have been opened for at least a year, which the Board considers to be a widely used indicator in the hospitality sector to measure current trading performance. Within the context of this announcement the Group's trading over the 13-week period from 28 June to 26 September 2021 has been compared with the 13 weeks ended 29 September 2019.

Sarah Willingham, Chief Executive Officer of Nightcap, commented:

"I am delighted to announce this upgrade of our expectations for the 53 weeks ending 3 July 2022, as a result of such strong performance across the Group. Our teams have been incredible, working tirelessly to meet the unprecedented pent up demand.  I can't thank our customers enough for their continued loyalty and commitment to helping, not just Nightcap, but the hospitality industry as a whole. 

Nightcap was built during the Covid-19 global pandemic to acquire and expand leading brands in the drinks-led bar sector and whilst the macro-economic climate remains uncertain, we believe that this uncertainty is core to our opportunity.

As anticipated, new sites are becoming available as the fallout from the pandemic continues. We expect the end of the rent moratorium in March 2022 to further improve availability of excellent sites.

With the opening of three new sites in November and a further 23 sites in legal negotiations or under offer, we are confident both in the strength of our bar concepts and in our ability to continue our rapid expansion across the UK."

For further enquiries:

Nightcap plc Sarah Willingham / Toby Rolph / Gareth Edwards	c/o We Are The Romans
Allenby Capital Limited (Nominated Adviser and Broker) Nick Naylor / Alex Brearley / Piers Shimwell (Corporate Finance) Matt Butlin / Amrit Nahal / Tony Quirke (Sales and Corporate Broking)	[phone] www.allenbycapital.com
We Are The Romans (Financial PR) Courtney Hamilton-Foad (Account Manager)	https://www.wearetheromans.com/ [phone] [e-mail]

 

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