Nightcap to slow expansion plans despite revenue surge
Looking ahead, Nightcap said its focus will be to maximise returns from its existing and newly opened sites and then continue its roll out programme as market conditions improve
Nightcap has announced that it plans to slow down its expansion plans of new site openings during the current financial year as trading in the first 13 weeks to 2 October 2022 has been “adversely” impacted by record warm weather, train strikes and the cost of living crisis, combined with increasing build costs.
The news comes as Nightcap reported that its revenues surged 500% in the 53 weeks ended 3 July 2022, rising from £6m to £36m year-on-year, representing Nightcap’s first full year of trading.
Adjusted EBITDA also grew tenfold from £200,000 to £3.3m, and during the year Nightcap increased the number of bars it operated from 19 to 31, driven by both new openings and acquisitions.
The group has opened several more sites post year end, taking the total number of opened bars to 36. Looking ahead, Nightcap said its focus will be to maximise returns from its existing and newly opened sites and then continue its roll out programme as market conditions improve.
Nightcap is the owner of The Cocktail Club, the Adventure Bar Group and the Barrio Familia group of bars.
Sarah Willingham, chief executive, said: “Our year has been eventful, fun and, at all times, rewarding. During the year the number of bars we operated increased from 19 to 31 and this reflects our strong growth.
“What excites me the most is that we have defined our brands and fine-tuned their business models to optimise the roll out of the individual brands.”
