Acquisitions drive Nightcap revenues to surge 700%

Nightcap has reported a 700% increase in revenues to £15.8m during the 26-week period ended 26 December 2021 boosted by a series of acquisitions.

The group also revealed like-for-like revenues increased 22.4% compared with the same period in 2019. Excluding the ‘Plan B’ period, group revenue increased by 28.3% on a like-for-like basis for the 24 weeks ended 12 December 2021 compared to the same period in 2019.

As well as “fast, sustainable growth”, it confirmed a continued focus on its conversion, and as such it reported adjusted EBITDA of £2.5m (IAS17 adjusted EBITDA: £1.6m) for the half year. This is an increase of over 300% and 200% respectively on the comparable period in 2020.

However, the group posted a loss of £0.5m for the period, up from £0.3m in 2020.

The group revealed 19 bars traded throughout the period, with 27 bars being operated at the end of the period, reflecting the acquisition of Barrio Familia and the opening of three TCC venues during November 2021, all of which traded for only the last five weeks of the period.

This follows the acquisition of The Adventure Bar Group in May of 2021 which the group attributed as the main driver of its revenue growth during H1.

It added the additions to the estate provide a “significant increase” in expected run rate revenues for the second half of this financial year and the subsequent year.

Sarah Willingham, CEO of Nightcap, said: “Nightcap has had a fantastic half year. We have taken the first steps in significantly growing our family of bars, both by adding the Barrio Familia Group in November 2021 and by opening three more The Cocktail Clubs in Bristol, Reading and London. We finished the calendar year with 27 top quality, late night bars.

“This half year has been spent focusing on getting the team and the Group ready for the fast and sustainable growth that we have planned for 2022 and beyond. With the team now in place to execute Nightcap’s strategy, we see continued excellent opportunities in the property market with over 24 sites in legal negotiations or under offer across several of our brands, in addition to the three new bars we have already announced for Cardiff and Exeter.”

She added: “At the same time we have delivered incredible numbers throughout the core estate with reported revenue increasing by more than 700% compared to last year primarily due to the acquisition of The Adventure Bar Group and a 300% increase compared to the same period in 2019.

“The like-for-like revenue growth of 22.4% (compared to H1 2019) demonstrates that through excellent management and motivated, happy teams we have been able to respond to the pent up demand from our wonderful customers, while significantly growing the underlying businesses.”