- The bar operator was co-founded by former Dragons Den star Sarah Willingham.
- Nightcap said trading had been “much smoother” than anticipated since the start of the year.
Cup actions plunged on Tuesday as the hotel company’s acquisition of a live entertainment brand was marred by a bleak business update.
The pub operator, co-founded by former Dragons Den star Sarah Willingham, saw its share price fall 8.2 per cent to 4.5p in late afternoon after it told investors that Operations had been “much weaker” than expected since the year began.
He blamed continuing cost-of-living pressures, rail workers’ strikes, “above-inflation increases” in business rates and other costs, and the upcoming rise in the UK living wage.
Market crash: Nightcap, co-founded by Sarah Willingham (pictured), saw its share price fall after saying trading had been “much smoother” than expected since the start of the year.
While the group believes FY2024 revenue will be in line with forecasts, it also expects to achieve adjusted profits before unpleasantries of between £2m and £2.5m, up from £2.6m for the year. past.
The company’s guidance came alongside the announcement that it had bought The Piano Works for £200,000.
Founded in 2015, The Piano Works runs a Victorian warehouse in Farringdon and a residence in the local Nightcap’s Covent Garden neighborhood in the heart of London’s West End.
Their venues offer a mix of live music, usually with musicians performing playlists decided by the audience, along with food and drinks, including cocktails.
Nightcap intends to make permanent the Covent Garden residency, which has been in operation since November, and expand the Piano Works concept to additional locations, such as cities outside the UK capital.
Alan Lorrimer, founder of Piano Works, said: “The last four years have been the toughest I have ever known in my forty years in hospitality.”
He added: “We now have the potential to expand The Piano Works and demonstrate that customers across the country will love our immersive, in-demand live music experience.”
Nightcap’s latest acquisition follows its acquisition of cocktail chain Dirty Martini and central London brasserie Tuttons in a £4.65m pre-pack deal last year.
He warned that the costs of integrating Dirty Martini and The Piano Works this year would be higher than expected.
Willingham said: “I am very excited about Nightcap’s future prospects and look forward to next year when our synergies become established and we begin to benefit from the successful integration of all our businesses.”
“Our new systems and processes will be fully operational and optimized, and the impact of our exceptional team and their excellent work will be felt and seen widely across the company.”