15th Nov 2021 12:27
(Alliance News) - Nightcap PLC on Monday said full-year revenue increased, boosted by strong reopening trading as the hospitality sector saw coronavirus restrictions lift, though it warned on recruitment challenges.
Shares were down 5.6% at 20.31 pence on Monday in London.
The London-based bar operator reported a 15% rise in revenue to GBP6.0 million for the year ended June 27 from GBP5.2 million the year before.
The firm said it was "really pleased" with the performance of its businesses since re-emerging from coronavirus restrictions. Some sites began outdoors trading in April, and then the full relaunch "began in earnest" in May.
Pretax loss widened to GBP5.3 million from GBP616,301. This was largely driven by share-based payments of GBP3.8 million, versus nothing a year ago.
Nightcap said that the business is trading "strongly" and remains "well-positioned" to deliver growth.
"We have seen record sales in recent weeks and expect this to continue as we move into the winter and as we seek new locations for these businesses across the UK," Chief Executive Sarah Willingham said.
Nightcap will "seek and secure" more bar locations for its Cocktail Club chain, confidence bolstered by strong consumer demand since reopening. The company plans to extend its Cocktail Club range to 40 locations in the next four years from the current 10.
While it has not had any supply chain issues, and is stocked up on key cocktail ingredients for the busy Christmas trading period, it did note challenges recruiting staff.
"The biggest challenge has been recruitment of staff. Our experience so far means that we are confident in our ability to attract and retain the best staff...However, we know that the lack of staff availability is affecting peer group companies and is a material challenge for our industry. This pressure is likely to feed through in wage inflation and into a squeeze on labour costs," the firm said.
By Abby Amoakuh; [email protected]
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