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IMO, RBG had to put a positive spin on their RNS, by claiming that Nightcap can't raise the funds necessary to acquire the company.
But reading into it, this was in very early stages, even pre DD, let alone any genuine valuations being put on the table.
I would much rather Nightcap sit back and go in again if RBG ends up struggling for cash again in the near future, then they can cherry pick the assets they want.
RBG's RNS won't help the fundraising. I would not be surprised if the fundraising quantum and pricing changes over the coming months.
Personally think this could be trading above 5p come September and think the BOD know that hence a forward premium. It needs a strong summer trading update of course and likely of the view could be some companies struggling at present, hence the reason they want to raise the cash to take advantage of this. If they cherry pick the good bars, then could achieve it's objectives and that may end up being a strong return for investors at these levels. IMHO, GLA,DYOR.
It seems that we won't know until September if the fundraising will be successful.
From the RNS:
The Issue Price represents a premium of approximately 30 per cent. to the mid-market closing price on AIM of 3.85 pence per ordinary share on 21 May 2024, being the latest practicable business day prior to the publication of this announcement.
Whilst the funds raised pursuant to the Subscription have been conditionally raised subject to the terms of subscription letters entered into between the Company and the subscribers, as at the date of this announcement, the total funding proposed under the Fundraising has not yet been raised and there can be no certainty that the Fundraising will proceed in line with its proposed terms or as to the amount that may ultimately be raised pursuant to the Fundraising. The Fundraising is not being underwritten by any person. The Subscription is not conditional on the issue of further New Ordinary Shares pursuant to the Fundraising (excluding the Subscription Shares). The obligations of investors pursuant to the Subscription will not be affected if the Fundraising (excluding the Subscription) is not completed for any reason.
Admission
Application will be made for the Subscription Shares to be admitted to AIM ("Admission"), which is expected to occur on or before 2 September 2024. A further announcement regarding the settlement of the Subscription and Admission will be made in due course.
Bought a few last week, as think this has a very good potential. To raise at the premium they are indicating only adds to that methodology. Top line is growing substantially from acquisitions, and pleasing to see strong operational cash flows (a large reason they report losses is due to Depreciation...) If they can start to reduce their LT-debt, this could be a very lucrative opportunity for shareholders. AIMHO, DYOR,GLA.
A decent priced placing today at c25% premium to raise £3.5m.
Says there is an opportunity available.
Must be trying to buy part of RBG.
RBG has 3 brands - Revolution, Revolucion de Cuba and Peach Pubs.
I suspect Nightcap are only interested in the cuba brand. It's a better fit to their current bars - Revolution is a disaster and Peach Pubs whilst the best of the 3 is a gastro pub chain (which was bought for £16m only 1.5 years ago).
Not great H1 numbers. Despite a good revenue increase, due to new bar openings, like for like down 10%.
Short on cash and now high borrowing charges mean some way from being profitable - EBITDA a bit meaningless when a company has high borrowing costs.
Whilst i'm sure train strikes have had an impact there are clearly bigger issues. WFH cannot be helping these city centre locations in midweek.
What a great idea. Happening now in Sheffield and Nottingham they said.
Day Fever Clubs for Afternoon Partying. Will likely catch on in London too, if not already !
should be a good buy for recovery & they did have a write up in citya.m. that sounded promising.
have also included some market details.
market cap £11.98 million. shares in issue:217.88 million.
revenue reached £9.2m in december. back in june they bought the dirty martini chain.
near to 50 sites are owned across the uk. ****tails seem to be very popular.
the ex dragon's den star sarah willingham owns this company. '' we expect to see the benefits of the integration and the synergies during the coming year from the transformation of our management team and improving our systems.
That being said , this could well get back to 15p by this time next year. The on-trade will do much better in 2024 so i would expect good financial updates over the course of the year. Especially around June/ July
I work in the drinks industry just for context
Rum will make a resurgence in the coming 2 years. Already is to a certain extent. Diageo recently bought Don Papa and will be plowing a lot of money into it as they predict that sector to grow.
Red Leg Spiced will be positioned to do well again in my opinion. Gin on the other hand is completely on a downcycle.
I wont be investing but will spectate on this one.
GLA
Only came across this share today after reading the trading update but it seems a decent one after what seems to be years of pain. Not sure what the long termers think of it?
Revolution Bars are closing 8 of their branches:
https://www.morningstar.co.uk/uk/news/AN_1704449734419230900/revolution-bars-plunges-amid-closure-of-eight-bars-softer-trading.aspx
Watford wasn't the first mis-step for the underpowered NGHT management team. Adverse economic conditions and train strikes can only be blamed for so long. Unimpressive.
They need to explain how they got it so wrong with Watford. Opened in Sep 22-closed “pause in trading” June 23. 500k wiped out. They talk about a much more favourable environment re rents so I assume when they go into a new location it’s with much lower overheads to make it work… this was a huge miss and a red flag for if they’re disciplined enough to execute their roll out strategy. Great concept, but need to ensure strong negotiating skills to ensure new locations are profitable
Yes, we did have a hot Sept, but only for 1 week at the beginning, not the whole month.
Also, the WFH on Friday is being used regularly now too.
Watch out for the train strike excuse in Dec although it will actually only impact 1 of the weekends in the lead up to xmas.
"Trading in the first 13 weeks of the new financial year to October was “adversely impacted” by September’s record warm weather"
What, like the warm weather that spiked UK Cider sales in the same period? What a laughable statement.
I agree. The Nightcap brand of bars target a younger crowd the majority of which live at home and are not exposed to increased mortgages costs. They still have their disposable income.
* Executive
I have to say that today's statement from the Chief Executive's reads well having had a quick scan this morning.
Interesting to learn that almost half of the sales come from pre-booked events/parties. Very good to read about their strong focus on training and investment in technology to manage/understand the customer.
It will still be a tough task to pull this all together and generate cash long term with all the challenges that exist in this sector, but the signs look promising based on their strategy which seems very clearly understood.
Hard to imagine there is much room left to crash further 😂
You have to laugh or we’ll cry
There's been practically no figures presented for 2023 at all.
Investors are flying blind hoping we're not going to crash.
Where are the half year results????
The full year is over in 6 weeks and no sign or mention in the recent rns
I sold out weeks ago. The CEO seems more interested in developing her IG following for her lifestyle and travel aspirations, than rolling up their sleeves here. Yesterday's announcement was head-scratching. GL to all who remain, IF it succeeds it will be down to individual brand teams IMHO and not the directors here.