Nightcap to delist from AIM; FY underlying profits to miss expectations

Bar owner Nightcap said on Friday that it plans to delist its shares from the London Stock Exchange, as it cautioned that underlying profits would be below current market expectations.

Explaining the decision to delist, Nightcap said that despite its "positive growth trajectory and focused strategy of consolidating the UK premium bar sector", the current market capitalisation "does not reflect these positive achievements nor the underlying prospects of the business".

As a result, the company’s directors believe that as a private company, it will be able to realise a greater valuation for the brands and the business as a whole, which would serve in the best interests of its shareholders.

Chair Gareth Edwards said: "We have not taken this decision lightly, however, following an extensive review and deliberation to ascertain the most effective way to maximise shareholder value in the longer term and increase the potential for the long-term success of the company, the Board has unanimously concluded that it is in the best interests of the company and our shareholders to cancel our AIM admission and re-register as a private limited company."

Nightcap also said that trading throughout 2024 has remained challenging for the sector, in line with reports from across hospitality and it expects this to continue until the end of the calendar year.

It cited headwinds from the ongoing cost of living crisis, above inflation increases to business rates and other costs, as well as the impact of the increase to the National Living Wage and rail strikes.

For the year to 30 June 2024, Nightcap expects to report revenues in line with current market expectations, but adjusted earnings before interest, tax, depreciation and amortisation are set to be below current market expectations.