Nightcap, the owner of The Cocktail Club, the Adventure Bar Group, Barrio Familia and the Dirty Martini group of bars, has announced its audited full year results for the 52 weeks to 2 July 2023. The Company’s Annual Report and Accounts for the 52 weeks to 2 July 2023 which reveal that annual revenue increased 29% to £46.4 million.
The bar chain operator increased the number of sites in its portfolio to 46 during the period, up from 31 a year ago, after buying Dirty Martini out of administration, it said in its annual financial statement today.
The owner of The Cocktail Club, the Adventure Bar Group, Barrio Familia and the Dirty Martini bars increased annual revenue 29% to £46.4 million. However, the company estimates that it lost £2.9 million in sales and £1.9 million in underlying earnings during train strike days.
Chief executive Sarah Willingham said the business “will not be in a position to reach its fullest trading potential until the industrial action has been settled”.
Group revenue was £14.7m for the period, an increase of 42.7% on the £10.3m the previous year. The company, which operates 46 sites, stated: “Warm weather in September (which reduced the demand for socialising in basement bars) led to record weeks at our outdoor venues, Bar Elba and in particular Luna Springs, which had its strongest summer yet, as customers enjoyed our large outdoor spaces. While trading in October 2023 has continued on the same trend as the first quarter of FY2024, we are focusing on the important Christmas period. Christmas bookings and enquiries across the whole estate including Dirty Martini are in line with the strong 2022 Christmas period. The board remains cautious about the near term future trading due to the challenges presented by continuing train strikes.
“The Nightcap estate is of a higher quality, better operated and with better trained and more engaged teams than ever before. We therefore remain optimistic about the future potential of the group and remain excited about building the UK’s leading bar group. The group’s balance sheet remains strong. As at 1 October 2023, the group’s cash at bank was £2.6m with bank debt of £9.1m prior to entering the important and lucrative Christmas period.”
It comes as the group reported revenue for the 53 weeks ending 3 July 2022 increased 29% to £46.4m (2022; £35.9m). Adjusted Ebitda on an IFRS 16 basis was up to £6.6m (2022: £6.0m). It made a pre-tax loss of £4.9m (2022: profit of £0.2m).
Chairman Gareth Edwards said Nightcap’s focus in the medium term will be on growth. He said the team has identified a number of new sites to expand geographical reach and is searching for potential acquisitions that could add value and strengthen its portfolio.
Trading in the first 13 weeks of the new financial year to October was “adversely impacted” by September’s record warm weather, cost of living and train strikes, but, post acquisition, represented a 43% increase in sales compared to last year, according to chief executive Sarah Willingham.