Nightcap – still building the leading premium bar group

The Q3 Trading Update from this fast-expanding bar-owning group has shown continued growth.

It reported that the 14 weeks to 3 April experienced sales 27.7% ahead on a like-for-like basis, even more impressively it was 52.7% better than the similar period in 2019.

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The strong returns from the November 2021 acquired Barrio Familia group helped to boost the whole group’s growth trajectory.

Sales revenues were well up at £9.6m for the Q3, against £7.9m in Q2 and £7.6m in Q1.

The group has seen its two recently opened bar sites in Cardiff and Exeter already trading profitably within their first week of opening.

More sites are due to open before the end of next month – at Bristol, Liverpool, Cardiff, and with a ‘flagship’ The Cocktail Club in Birmingham.

There are another 23 sites currently under negotiation or offer that are due to be progressed before the group’s June year-end. The company reported that its Q3 cash at bank position was a healthy £7.6m.

The number of operating bars in situ at the year-end is likely to be 30 against just 19 previously.

We are expecting the group to see revenues rise to £34.5m for the current year against just £5.9m in 2021, enabling a significant turnaround from operating losses of £5.3m to a pre-tax profit of £2.1m. That should see earnings coming out at about 1.45p per share.

Looking into the coming year analyst Matt Butlin, at the group’s brokers Allenby Capital, has estimated that group revenues will jump to over £54m and that it will catapult its pre-tax profits by another 150% to around £5m, worth 2.5p in earnings.

Sarah Willingham, Chief Executive Officer, is obviously very confident and delighted about her group’s progress.

“We continue to deliver on our promise to build the leading premium bar group in the UK. As seen from our Q3 revenue numbers, our run rate revenue is developing nicely.”

“We are mid-build on several new openings, we continue to negotiate on a string of new attractive leases and we have the cash required for our incredible teams to deliver on the strategy for their individual brands.”

Looking ahead the group could well repeat the announcement of a Trading Update just ahead of the year-end, early next month.

The company’s next trading year is getting ever closer upon which its shares will be trading on prospective earnings based upon a 2.5p estimate. 

That would see them well undervalued at just 19.25p.

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