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bojo has not ruled out another lockdown -see sky news
Any further insights given to the cash vs liabilities situation?
Actually looking a the interim results that were recently released cash may be a little tight. The EBITDA figure and cash generated were both positive which is good, however, the balance sheet is less strong.
Comparing the YE results nightcap had current assets of £14.3m v current liabilities of £11.5m. At H1 it is now assets of £11.7m v £13.7m liabilities - so in the short term we have a £2m shortfall (and a 6 month negative change of c£4m) . Clearly not all these payments need to be made at once but it's not a good indicator of a supposedly cash generating company.
It will be interesting to see if this is mentioned in the Investor Meets presentation today
IMHO cash is ok unless the purchase another brand. NGHT's strategy is to increase their venues, but i see this predominantly as expansions to existing brands . Of the 25 negotiations not all will reach a positive conclusion and it is currently a good time to get empty spaces at knock down prices. Also, if we do come out of the pandemic, as is now expected, then the timing could be ideal. Also, these are leases, not freehold purchases, so the upfront cost is a lot lower, although clearly the new venues will need to be kitted out internally so this will incur some costs - maybe £50k per venue?
Finally, hopefully the current venues will be cash generative so cash should be growing from the main operations.
...hello all. Has anyone considered the cash requirements here (from 10th Jan update) "Nightcap currently has a further 25 sites in legal negotiations or under offer across several of its brands. The Group expects for several new site leases to be entered into before the end of March 2022." - goes on to say £9.4m in the bank. Enough? Any signs of a raise on the horizon?
Have moved on from Nightcap, wish all current shareholders well. Just spotted this online and thought some of you might be interested.
https://www.leeds-live.co.uk/best-in-leeds/restaurants-bars/leeds-bar-revolution-turn-huge-22775783
I heard Nightcap have just won a huge contract to supply booze and bars for Downing Street - should act as a good hedge against any future lock downs.
seems a solid update as we have almost been in semi lockdown for the last couple of months.
Regarding cash, yes looks fine. Was over £12m in Sept but we have spent c£3.6m on acquisitions since then plus upgrades to bars etc
Yeah simply put me too
Well, I like it.
Assume this is the same Mark Ward who owns c10% of RBG and also a fair bit of IDP. He is a very wealthy smart cookie, so IMHO it bodes well that he is increasing his holding here
Rapid growth that will be 15% in one day! roll on Xmas .
ShandyPants - I share your view as well.
Revs was making good progress before Covid hit - the De Cuba bars usually out performed the vodka bars, however, in line with the rest of the industry I believe Revs are now seeing their younger focussed brand (Revs Vodka is 18 to 24 focussed, de cuba is 24+) outperform their slightly older focussed brand. We also saw this in 'spoons where draft beer was significantly down but drinks favoured by a younger clientele were significantly up.
Thankfully we don't all get excited by the same thing - I invest in Boo, it's not because I like £10 dresses... It's because I see significant upside in the mid term. I don't personally like tequila however the numbers look attractive to me and will significantly add to both the top and bottom line of Nightcap, this acquisition seems to make a lot of sense.
I wouldn't see them rolling it out to smaller towns but larger towns and cities could easily support one of these.
If we grow to 20 ****tail clubs, 20 Adventure Bar group bars and then 10 of these... that gives... wait for it... 50 bars.. I'm not just a pretty face..
Not bad considering where we started from. I'm actually happy seeing a lot of 'bought growth' - Nightcap was launched as an acquisition vehicle...
Fastduck - surely the cuba bars are the best in the revolution range - the standard revolution brand appears to be the issue. Also not sure how you can say RBG were on the slide before covid - the H1 and xmas 2020 period were really good - then covid hit.
This deal looks encouraging IMHO. The 60s theme bar is a stand alone brand the the others will appeal to the younger crowd who appear to be the big spenders ATM. Difficult to determine whether the price is good as revenues/trading was impacted by Covid. I like that 3 of the 5 bars have a kitchen as food ensures it can appeal to many people throughout the day, rather than just the late night drinkers/clubbers.
Definitely, its not a small town, quite few bars and several nightclubs.
Is there scope for another similar bar in your town?
I live in a town 200 mile from London and one of, if not the most popular bar's is casino de cuba and was for a long time pre covid
Latin themed bars do not excite me. As I pointed out in a previous post, Revolution were on the slide before Covid. The 60's themed bar is probably ok for London. Expansion sounds great but no use opening expensive bars in poorer areas of the UK where there aren't enough young people with the money to spend. I want to see some genuine numbers, not bought growth. Nightcap need to demonstrate they are worth backing before acquiring again. Unless they do, the share price will be stuck around 20p or more likely less. |Institutions won't buy because they are looking for management capable of creating organic profit growth generating cash. When they need to raise more money, the sp will fall further. Before then I will thankfully be out.
These guys are doing exactly as they said they would, they are well on the way to creating a significant bar group.
This acquisition looks to be great value, perhaps not as good a deal as the previous acquisition however times have changed.
Good to see them add another concept but one which allows them to take advantage of the synergies from the larger group.
With their stated roll out strategy you can see them getting up to 50 bars pretty quickly. I’m assuming they’ll roll this new concept out to some of the larger cities in the UK.
I see RBG posted their results today, more doom and gloom, though as you remarked regarding the Nightcap results, only as expected. The summer, post results, has been good. What happens now going forward will determine success or failure. As a shareholder, now, don't want to see anymore fundraising by issuing shares at such a low sp. It is a dilution trap which is hard to escape from. For me it is up to the management of Nightcap to prove they are worth backing. By pulling everyone together and working hard to not only achieve a good set of results but to ensure the customers leave happy enough to come back and spend their hard earned money again. Also leaving good reviews on the likes of Trip Advisor, encouraging others to join in the fun. In other words get noticed for the right reasons. Perform well enough to be tipped as a buy on the back of a year of impressive post covid lockdown numbers. Get the analysts excited and institutional investors wanting to invest.
Right sermon over, am off out. Will come back if there is something to talk about. Keep up the good work shandypants
no probs at all - thought it amusing we posted exactly the same excerpt.
RBG is not London focused and main cities appear to be Manchester and Liverpool, but based on their update, and to a lesser extent Spoons, it definitely appears there is a shift in behaviours with the money being spent by the younger clientele who value experience and are prepared to pay for it. The late openings is also a big factor here too which the standard pub can't replicate.
If we can get through the critical xmas trading period without any covid restrictions then things look really healthy here (and also RBG) IMHO.
Sorry Shandypants, didn't mean to step on your toes. Am new to Nightcap obviously and hadn't got around to reading the posts, just today's. Now am here, will be keeping up to date with the news and posts, won't make the same mistake again. Though I can't promise to agree with you always.
Your mention of Revolution Bars, has had me looking at them. They were on the slide before Covid, hopefully Nightcap can ruffle their feathers. I think they could be more attractive to young women, having a girls night out, in any case.
Also clocked the lse adjustment to c.ocktails, will also bear that in mind if posting again.
How long I'll stay depends on the post Christmas H1 update. Am here now because am expecting very good numbers then.
fastduck - i posted the same last week (not having a go, just pointing it out).
I think the big news in the Wetherspoons update is that the lower end of the market is struggling (beer, older clientele etc) but the younger age drinkers are actively going out and are prepared to spend. A closer comparison might be Revolution (RBG) which is also at the higher end of the market and has late opening etc. They are performing very well too.
Below is an extract from JDW trading update rns Nov 10
In the last 15 weeks, there has been a considerable increase in sales of the range of drinks often consumed by younger customers, for example ****tails (+45%), vodka (+17%) and rum (+26%).
This confirms that the recent bullish Nightcap trading update was not extraordinary. Their establishments do cater for younger customers, particularly women who enjoy a good time and ****tails. With 3 new venues open this month, it would appear that Christmas is going to be very jolly for the group. Looks like the right time to buy.
As mentioned on Revolution Bars board the recent Wetherspoons update makes interesting reading - below.
“In the last 15 weeks, there has been a considerable increase in sales of the range of drinks often consumed by younger customers, for example ****tails (+45%), vodka (+17%) and rum (+26%).
In contrast, draught products, more often consumed by older customers, have been under pressure, with traditional ales down by 30% and stout down by 20%, for example.”
Then there is the christmas season - it appears many companies have delayed booking venues etc but as things slowly appear to be getting back to (new) normal there has been a big increase in bookings over the last few weeks. Got to bode well for Nightcap IMHO