Nightcap racks up over £300,000 in lockdown costs
The group was unable to achieve revenues during Q4 of 2020 as it had not yet completed its acquisition of London Cocktail Club
Nightcap has announced that it incurred costs of £318,342 for Q4 of 2020, with the group unable to offset the losses with any turnover.
The group, owned by Sarah Willingham, completed its first acquisition of London Cocktail Club (LCC) on 13 January 2021, after the period ended.
Therefore, Nightcap acted essentially as a cash shell for the three months ended 31 December 2020.
Nightcap’s £5.75m takeover of LCC came on the same day as its IPO on the AIM market of the London Stock Exchange.
Willingham said: “Our view for the future prospects of both the group and the London Cocktail Club business remains unchanged.
“We believe that drinks-led hospitality will come back stronger than ever during the second half of 2021, helping us on our mission to be one of the UK’s leading bar groups.”
While Nightcap currently owns 10 LCC venues, it has plans to grow its group portfolio to approximately 40 venues over the next five years.
Willingham added that the “damage done” to the hospitality and property industries has provided “access to new sites in prime locations” with lower rents and capital costs.
She added: “Given this, we are confident in our ability to provide even better returns on our capital employed than historically.”
