20th Feb 2024 11:25
(Alliance News) - Nightcap PLC on Tuesday said it will buy some assets of bar and entertainment venue, The Piano Works from its operator, TDC Concepts Ltd.
Shares in Nightcap dropped 16% to 4.13 pence each in London on Tuesday morning.
Nightcap is a London-based owner of the Cocktail Club, Adventure Bar and Barrio Familia chains.
The deal to purchase assets of The Piano Works is through Nightcap's subsidiary, Stamp Entertainment Ltd.
Nightcap will pay a total consideration of GBP200,000 for The Piano Works assets.
Additionally, the bar and entertainment operator said it has raised a total of GBP1.0 million though a subscription of 16.7 million new shares at 6 pence per share.
Commenting on The Piano Works acquisition, Nightcap Chief Executive Officer Sarag Willingham said: "The Piano Works is another excellent addition to our group. I very much look forward to the future of this concept. It adds a whole new area of expertise to Nightcap and a different entertainment offer, bringing live music to our customers.
"We have known The Piano Works concept for a long time and look forward to working with the founders and their dedicated staff. After the very successful residency in our Barrio bar in Covent Garden at Christmas we are delighted to be able to partner with them and provide the opportunities to bring this great entertainment concept to other cities across the UK."
Nightcap also issued a trading update on Tuesday, in which it stated that trading so far in the year ending June 30 has been softer than previously expected by the board.
"The group faces headwinds from ongoing rail strikes, the continuation of the cost of living crisis, above inflation increases to business rates and other costs, and the impact of the forthcoming increase to the national living wage," it commented.
The firm added that it expects financial 2024 revenue to be in line with expectations. A year ago, revenue was GBP46.4 million.
It also anticipates adjusted earnings before interest, tax, depreciation and amortisation to be in the range of GBP2.0 million to GBP2.5 million. This would be a reduction from GBP6.6 million.
By Sabrina Penty, Alliance News reporter
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