London Cocktail Club owner Nightcap sees its shares skyrocket after the sale as drinkers flock to its bars again since it reopened indoors
- Sales increased 92% in the last three weeks compared to the same period in 2019
- Weekly sales at the seven newly acquired bars hit an all-time high of more than £ 520,000
- Company continues to use the crisis to expand its barn stable
London Cocktail Club owner Nightcap said recent sales exceeded expectations as drinkers flocked to his bars again since indoor seating was allowed on May 17.
The group, which was co-founded and led by former Dragons’ Den investor Sarah Willingham, also said their management teams were “traveling the UK looking for new property” as the group continues to take advantage of the crisis to expand its barn stable .
Revenue has increased 92 percent in the past three weeks since indoor food service reopened compared to the same period in 2019 before the pandemic broke out, with like-for-like sales increasing 53 percent.
Back to the Bars: Sales at Nightcap’s 19 bars rose 92% in the past three weeks
Performance at the 19 bars in London, Bristol and Birmigham was well above expectations, Nightcap said, especially given the bars have “limited capacity” due to social distancing requirements.
Nightcap’s shares rose as much as 18 percent in early trading after the update. They rose less than 4.4% to midnight at 11 a.m. on Tuesday.
The group owns the London Cocktail Club, a chain of 12 top quality bars in London and Bristol.
Last month it also took over the Adventure Bar Group and its seven bars, including Luna Springs in Birmingham and Bar Elba, a rooftop bar in London’s Waterloo.
Weekly sales in the newly acquired bars hit a cumulative record of more than £ 520,000, the company said as it saw 96 percent growth compared to 2019.
“Particularly encouraging” were sales at Luna Springs, the first outdoor bar in Birmingham, which opened on April 12 this year, and at Tonight Josephine, also in Birmingham – the chain’s first to open outside of London.
It added that if all lock restrictions aren’t lifted on June 21, it still “has confidence that all sites will continue to do well” even if current social distancing restrictions remain in place.
Former Dragon Den investor Sarah Willingham is the co-founder and CEO of Nightcap
Launched in London’s Junior AIM market in January, Nightcap recently raised £ 10m to fund the Adventure Bar Group’s acquisition, more than doubling its original fundraising goal.
The stock market debut came shortly after the purchase of the London Cocktail Club for an initial sum of 5.7 million pounds.
The group has tried to take advantage of attractive hospitality real estate opportunities following the impact of the pandemic.
“The group is expanding its opening pipeline for the next three years,” it said in a statement today.
‘Our management teams are touring the UK in search of new property and we have a number of locations that are currently in legal negotiations for several of the Group’s brands.’