Nightcap has reported record trading weeks across several of its sites in the lead up to Christmas.
The operator of 46 premium bars, achieved revenue for the four-week period ended 31 December 2023 of £7.4m, a 65.7% increase compared to £4.5m for the equivalent period in 2022 and a like-for-like increase of 11.9%.
As a result, Nightcap’s revenues for the entire December 2023 were the largest monthly revenues in its nearly three-year history since IPO.
The group reported unaudited revenue of £9.2m, during the period, compared to £5.9m for December 2022, an increase of 55.9% and a like-for-like increase of 4.6%.
The company said that it also saw a quarter of strong growth in Q2 FY2024.
Revenue was £18.0m, resulting in a 39.0% increase compared to £12.9m for the equivalent period in FY2023 and a 5.9% like-for-like* decrease compared to the same period in FY2023.
This was primarily driven by strong Christmas trading alongside the integration of the Dirty Martini bars, a collaboration with PianoWorks and a number of recently opened sites “starting to show improved maturity profiles”.
Also reporting the groups half year results, revenue for the 26 weeks ended 31 December 2023 was £32.7m.
This marks a 40.9% increase compared to £23.2m 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.
Sarah Willingham, Nightcap CEO said 2023 had been a “volatile year” in terms of the macro-economic impact on the hospitality sector.
”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”, she added.
”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.
Nightcap’s cash position as at 31 December 2023 was £3.9m (including cash in transit of £0.9m).
At the same date, it had total bank debt of £8.9m resulting in a net debt position of £5.0m (excluding convertible loan notes).
£1.0m 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 £0.5m of deferred consideration on the Dirty Martini acquisition following all conditions being met.
With £0.2m paid in December 2023, the remaining £0.3m will be paid during Q3 FY2024.
Willingham added, “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,” she said.
