TIDMNGHT

RNS Number : 2351S

Nightcap PLC

15 March 2021

15 March 2021

Nightcap plc

("Nightcap", the "Company" or the "Group")

Interim results for the period ended 31 December 2020

Chief Executive Officer's statement

I am pleased to present the unaudited interim results for the period from 23 September 2020 to 31 December 2020 for Nightcap plc.

Nightcap's successful fund raising and the admission to trading on the AIM market of the London Stock Exchange plc ("AIM") completed in January 2021 during the worst crisis faced by the UK hospitality industry in our lifetime. We believe that drinks-led hospitality will come back stronger than ever during 2021, helping us on our mission to be one of the UK's leading bar groups.

On the back of the UK Government's successful vaccine programme and its roadmap to start re-opening hospitality from mid-April onwards the opportunities for Nightcap are enormous. With an experienced, driven team and 10 venues ready and waiting to once again serve the "millennial pound", we look forward to delivering our commitment to capitalise on this opportunity.

Nightcap has been set up to acquire, re-capitalise and develop drinks-led concepts with significant potential across the UK. The impact of the COVID-19 pandemic on the hospitality industry has been immense and we are well placed to support entrepreneurs and businesses that have suffered during the pandemic. We are proud to be part of the hospitality industry's road to recovery. As we forecast on IPO, we are already seeing evidence of the unprecedented opportunity to develop and grow fundamentally sound businesses which have been adversely affected by the events of the past 12 months. These businesses still have strong and motivated leadership teams but lack the capital to grow. With targeted investment and a highly experienced team, we are confident that our prospects for growth through acquisition and organic roll out are excellent.

Since the acquisition of The London Cocktail Club Limited ("LCC"), management is putting in place a roll-out programme to expand from the existing 10 sites to up to approximately 40 sites over the next five years and we are currently in negotiations on several new leases inside and outside of London. In line with our expectations, the damage done to the property and hospitality sectors by the pandemic is allowing us access to new sites in prime locations with better rents, increased incentives and lower capital costs per site than previously experienced. We are confident of our ability to provide even better returns on our capital employed than historically.

But above all, we look forward to continuing to do what we do best - looking after our customers, showing them a great time, opening new sites and giving great people meaningful careers.

Results

Nightcap was incorporated on 23 September 2020 to take advantage of the significant changes taking place within the premium bars segment and the hospitality industry more generally in the UK. On 13 January 2021, Nightcap's ordinary shares were admitted to trading on AIM and on the same day the Company acquired the entire share capital of LCC for an initial consideration of GBP5.7 million (subject to adjustment in accordance with the terms of the acquisition agreement). Over 97% of this initial consideration was satisfied by the issue of 55,378,837 new Nightcap ordinary shares, with a small cash component of GBP162,116 paid.

The Company's admission document (the "Admission Document"), which is available from Nightcap's website (www.nightcapplc.com), sets out details regarding Nightcap, its strategy and LCC, including historical financial information on LCC for the three 52-week periods ended 28 June 2020, 30 June 2019 and 1 July 2018 and the thirteen-week periods ended 27 September 2020 and 29 September 2019, as well as historical financial information on Nightcap for the period from incorporation (23 September 2020) to 30 November 2020.

The results that follow are for the unaudited period from incorporation on 23 September 2020 to 31 December 2020 for Nightcap. These financial statements are drawn up before Nightcap's successful admission to trading on AIM and the acquisition of the entire issued share capital of LCC, both of which occurred on 13 January 2021. During the period from incorporation to 31 December 2020, Nightcap had no turnover and incurred costs of GBP318,342, which predominantly represented accrued fees in connection with the admission of the Company's ordinary shares to trading on AIM.

Note 12 to the financial statements below sets out the interim results for LCC for the 26-week period ended 27 December 2020 and for the comparable 26-week period to 29 December 2019.

Current trading

As dictated by the UK Government, all of LCC's bars remain closed under the nationwide lockdown restrictions put in place on 4 January 2021. LCC's management have worked hard to reduce all business costs to keep its cash burn to the lowest possible amount. Continuing from the first nationwide lockdown in the first half of 2020 LCC has benefited from certain UK Government support schemes including, amongst others, the Coronavirus Job Retention Scheme, the Coronavirus Business Interruption Loan Scheme, VAT deferral and hospitality business rates relief at applicable locations.

As described in the Admission Document, since the start of the COVID-19 pandemic, LCC has re-negotiated the majority of its property leases, securing rent reductions for periods when its estate has been closed, as well as reducing the rent liability going forward.

Nightcap has also taken other steps to mitigate the effects of the UK Government's current national lockdown, which has included Directors salary sacrifices and cost reductions.

As at 28 February 2021, the Group had unaudited cash resources of approximately GBP3.75 million and had total borrowings of approximately GBP1.35 million. LCC has recently agreed a continuation of its overdraft facility and a further six-month payment holiday from its main loan provider.

Outlook

On 22 February 2021, the UK Government announced a provisional roadmap for the reopening of the hospitality sector. Whilst much of LCC's estate does not have any outside space, we are planning to open five sites on 12 April 2021. For the remainder of the estate, we are planning to reopen on 17 May 2021, in line with the UK Government's current guidance.

During 2020, LCC reopened its venues twice, in July and December following the lifting of the UK Government restrictions in place at those times. The Board was encouraged by these reopening processes, which saw numerous customers returning to all venues, demonstrating the popularity of LCC's venues. The Board believes that this is a positive indicator for when LCC's venues are able to reopen in due course.

The opportunities that Nightcap is seeing in the hospitality sector, in terms of available sites and potential business acquisitions, are even stronger than the Board had anticipated at the time of the Company's admission to AIM. The Board is confident that the current dynamics in the hospitality property market will allow the Group to secure new sites at significantly reduced rents and with lower capital costs per site.

The Board look forward to the future with optimism.

UNAUDITED INTERIM FINANCIAL STATEMENTS ON NIGHTCAP PLC

UNAUDITED CONDENSED STATEMENT OF COMPREHENSIVE INCOME

 
                                           Period from incorporation 
                                                                  to 
                                                    31 December 2020 
                                    Note                         GBP 
 
 Revenue                                                           - 
 Cost of goods sold                                                - 
                                          -------------------------- 
 Gross profit 
                                          -------------------------- 
 Administrative expenses             3                     (318,342) 
                                          -------------------------- 
 Operating loss                                            (318,342) 
 
 Finance income                                                    - 
                                          -------------------------- 
 Loss before taxation                                      (318,342) 
 
 Tax                                                               - 
                                          -------------------------- 
 Total comprehensive loss for 
  the period                                               (318,342) 
                                          ========================== 
 
 Earnings per share attributable 
  to equity owners 
 Basic and diluted loss per 
  share (pence)                      5                        (1.05) 
 
 

All of the results above are from continuing operations and there is no Other Comprehensive Income for the period.

This information is presented for Nightcap Plc (company only information).

UNAUDITED CONDENSED STATEMENT OF FINANCIAL POSITION

 
                                                                As at 
                                                          31 December 
                                                                 2020 
                                Note                              GBP 
 
 Assets 
 Current assets 
 Trade and other receivables     6                            769,977 
 Cash and cash equivalents                                  1,094,656 
                                                          ----------- 
 Total assets                                               1,864,633 
                                                          =========== 
 
 Liabilities 
 Current liabilities 
 Trade and other payables        7                          (938,975) 
                                                          ----------- 
 Total current liabilities                                  (938,975) 
                                                          =========== 
 
 Net assets                                                   925,658 
                                                          =========== 
 
 
   Equity 
 Called up share capital         8                            398,800 
 Share premium                   8                            845,200 
  Retained earnings                                         (318,342) 
                                                          ----------- 
 Total equity attributable 
  to the owners                                               925,658 
                                                          =========== 
 
 

UNAUDITED CONDENSED STATEMENT OF CHANGES IN EQUITY

 
                                 Share   Share premium    Retained       Total 
                               capital                    earnings      equity 
                                   GBP             GBP         GBP         GBP 
 At incorporation                    -               -           -           - 
--------------------------   ---------  --------------  ----------  ---------- 
 Transactions with equity 
  owners 
 Issue of ordinary shares      398,800         845,200           -   1,244,000 
---------------------------  ---------  --------------  ----------  ---------- 
 Total transactions with 
  equity owners                398,800         845,200           -   1,244,000 
---------------------------  ---------  --------------  ----------  ---------- 
 Total comprehensive loss 
  for the period 
 Loss for the period                 -               -   (318,342)   (318,342) 
---------------------------  ---------  --------------  ----------  ---------- 
 Total comprehensive loss 
  for the period                     -               -   (318,342)   (318,342) 
---------------------------  ---------  --------------  ----------  ---------- 
 As at 31 December 2020        398,800         845,200   (318,342)     925,658 
---------------------------  ---------  --------------  ----------  ---------- 
 

UNAUDITED CONDENSED STATEMENT OF CASH FLOWS

The Statement of Cash Flows of the Company is as follows:

 
                                                 Period from 
                                            incorporation to 
                                            31 December 2020 
                                    Note                 GBP 
 
 Cash flow from operating 
  activities 
 Loss for the period                               (318,342) 
 Adjustments for: 
  Increase in trade and other 
  receivables                         6            (769,977) 
 Increase in trade and other 
  payables                          7                938,975 
                                          ------------------ 
 Net cash flows from operating 
  activities                                       (149,344) 
                                          ------------------ 
 
 Cash flows from financing 
  activities 
 Proceeds from the issue of 
  shares                            8              1,244,000 
                                          ------------------ 
 Net cash inflows from financing 
  activities                                       1,244,000 
                                          ------------------ 
 
 Net increase in cash and 
  cash equivalent                                  1,094,656 
                                          ================== 
 Cash and cash equivalents 
  at beginning of period                                   - 
 Cash and cash equivalents 
  at end of period                                 1,094,656 
                                          ================== 
 

NOTES TO THE HISTORICAL FINANCIAL INFORMATION

   1       General information 

Nightcap Plc ("the Company") was incorporated on 23 September 2020 as a public limited company in England and Wales with Registered Number 12899067 under the Companies Act 2006. As at 31 December 2020, the Company had not yet commenced business and no dividends have been declared or paid since the date of incorporation. The principal activity of the Company is to acquire and grow hospitality concepts in the premium bars segment and the hospitality industry more generally in the UK.

The address of its registered office is 201 Bishopsgate, London, EC2M 3AB.

Post 31 December 2020 the Company listed on the AIM market on 13 January 2021 and acquired the entire share capital of The London Cocktail Club Ltd ("The London Cocktail Club").

   2       Basis of preparation 

The condensed interim financial statements prepared in accordance with IAS 34 cover the period from incorporation on 23 September 2020 to 31 December 2020 for Nightcap Plc. Note 12, includes the unaudited condensed consolidated interim financial statements for the 26-week period to 27 December 2020 for The London Cocktail Club.

The condensed interim financial statements have not been audited or reviewed by the Company's auditors. The financial information shown does not constitute statutory financial statements within the meaning of section 434 of the Companies Act 2006.

The financial information is presented in Pounds Sterling, which is the Company's functional and presentational currency and has been prepared under the historical cost convention.

The Directors consider that the principal risks and uncertainties that the Group faces remain as those set out in the Admission Document.

The accounting policies adopted in the preparation of the condensed interim financial statements are consistent with those applied to the period ended 30 November 2020 as disclosed in the Admission Document. The Company has not early adopted any other standard, interpretation or amendment that has been issued but is not yet effective.

Use of judgements and estimates

In preparing these condensed interim financial statements management has made judgements and estimates that affect the application of accounting policies and measurement of assets and liabilities, income and expense provisions. Actual results may differ from these estimates.

The key judgements and key estimates can be found in the Admission Document in the Company's historical financial information for the period ended 30 November 2020.

Split of fundraising costs

The Company has incurred various costs during the fund raising and the admission to trading on AIM. The directors have reviewed the costs and where the transaction costs relate to the issuing of new shares, these have been accounted for as a deduction from equity to the extent they are incremental costs directly attributable to the equity transaction that otherwise would have been avoided. Where the transaction costs relate to the stock market listing, these have been accounted for as an expense in the statement of profit or loss and other comprehensive income. In the instances where the cost relates to both the issuing of new shares and the stock market listing, the directors have used their judgement to determine that a 50:50 allocation is reasonable.

Going concern

The condensed interim financial information has been prepared on the assumption that the Company will continue as a going concern. Under the going concern assumption, an entity is ordinarily viewed as continuing in business for the foreseeable future with neither the intention nor the necessity of liquidation, ceasing trading or seeking protection from creditors pursuant to laws or regulations.

Following the review of cash flows prepared as part of the AIM Admission process and the successful IPO fundraising the Directors believe that the Company and its newly acquired subsidiary have adequate cash resources, with the net proceeds of the Fundraising, to continue in operational existence for the foreseeable future. At 28 February 2021, the Group had cash resources of approximately GBP3.75m and borrowings of GBP1.35m. In line with current UK Government guidance the Board anticipate that the Group's bars will be reopened on or around 17 May 2021. The Board believe that the Company is financially strong and, with the proceeds of the IPO fundraising, would be able to survive an extended period of lock down should the UK Government decide to impose it.

The Company acquired The London Cocktail Club on 13 January 2021 and has presented its condensed interim consolidated financial statements in note 12.

As part of the adoption of the going concern basis the Company has considered the uncertainty caused by the Covid-19 pandemic which impacts The London Cocktail Club, which put the following measures in place:

   --    minimise costs and cash outflows 
   --    use of Coronavirus Job Retention Scheme 
   --    taking advantage of rates reliefs and grants 
   --    negotiating rent concessions 

-- secured a GBP500k 5-year term 3.1% interest loan under the Coronavirus Business Interruption Loan Scheme

   --    agreed capital repayment holidays with our bankers 

The Company monitors cash balances and prepares regular forecasts, which are reviewed by the Board. Following the Government announcement on 22 February 2021, with the provisional reopening road map, and with full unrestricted hospitality expected to be able to open on 21 June 2021, the Directors believe that it remains appropriate to prepare the financial statements on a going concern basis.

   3       Loss from operations 
 
                                     Period from incorporation 
   Operating loss is stated                                 to 
   after charging:                            31 December 2020 
                                                     Unaudited 
                                                           GBP 
 Professional costs incurred 
  in respect of listing of 
  the Company                                          318,342 
 
 
   4       Taxation 

The actual charge for the period can be reconciled to the expected charge based on the profit or loss and the standard rate of tax as follows:

The Company is subject to income tax at a rate of 19 per cent, as at 31 December 2020.

Tax charged:

 
                                               as at 
                                         31 December 
                                                2020 
                                           Unaudited 
                                                 GBP 
 Current taxation                                  - 
 Deferred taxation                                 - 
                                 ------------------- 
                                                   - 
                                 =================== 
 
                                         Period from 
                                    incorporation to 
                                    31 December 2020 
                                                 GBP 
 Loss before tax                           (318,342) 
 Corporation tax at 19%                     (60,485) 
 Disallowed expenses                               - 
 Losses for which no deferred 
  tax is recognised                           60,485 
 Total tax charge                                  - 
                                 =================== 
 

The Company has tax losses available to be carried forward against trading profits arising in future periods. At this time, a deferred tax asset has not been recognised due to insufficient certainty over the level of future profits to utilise against this amount.

   5       Earnings per share 

The calculation for earnings per ordinary share (basic and diluted) is based on the profit or loss after income tax attributable to equity Shareholders for the period and is as follows:

 
                                                                    Period from 
                                                               incorporation to 
                                                               31 December 2020 
                                                                      Unaudited 
 Loss for the period attributable 
  to equity holders (GBP)                                             (318,342) 
 Weighted average number of shares 
  in issue                                                           30,242,425 
                                                             ------------------ 
 Basic and diluted loss per share 
  (pence)                                                                (1.05) 
                                                             ------------------ 
 
 

Earnings and diluted earnings per ordinary share are calculated using the weighted average number of ordinary shares in issue during the period. There were no dilutive potential ordinary shares outstanding during the periods.

   6       Trade and other receivables 
 
                        As at 31 
                        December 
                            2020 
                             GBP 
   Prepayments           739,888 
 Vat Debtor               30,089 
 Total                   769,977 
                      ---------- 
 
   7       Trade and other payables 
 
                         As at 31 
                         December 
                             2020 
                              GBP 
 Trade payables            42,000 
 Accruals                 896,975 
                       ---------- 
 Total                    938,975 
                       ---------- 
 
   8       Share capital 
 
                                           Share      Share 
                     Number of shares    capital    premium       Total 
                                             GBP        GBP         GBP 
                    -----------------  ---------  ---------  ---------- 
 At incorporation                   2      -              -           - 
 Issued                    39,879,999    398,800    845,200   1,244,000 
 
 At 31 December 
  2020                     39,880,001    398,800    845,200   1,244,000 
                    =================  =========  =========  ========== 
 
 
 

On incorporation, the Company issued 2 ordinary shares for consideration of GBP0.01 per share at nominal value.

On 2 October 2020, the Company issued 24,999,999 ordinary shares of GBP0.01 for consideration of GBP499,999.98 cash.

On 11 November 2020, the Company issued 14,880,000 ordinary shares of GBP0.01 for consideration of GBP744,000.00 cash.

   9       Controlling party 

As at 31 December 2020, Michael and Sarah Willingham-Toxvaerd held 25,000,001 shares (representing 63% of the then issued share capital) and were considered to be the Company's controlling party as at the period end.

   10     Related party transactions 

Michael and Sarah Willingham-Toxvaerd were the sole directors of Nightcap Plc during the period and were issued a total of 25,000,001 ordinary shares of GBP0.01 for a total consideration of GBP500,000.

   11     Post balance sheet events 

On 6 November 2020, Nightcap Plc made an offer to purchase the entire issued share capital of The London Cocktail Club.

On 13 January 2021, Nightcap Plc was successful in its Admission to the AIM market raising funds of GBP4m via a placement of 40 million ordinary shares.

On 13 January 2021, as part of the AIM Admission process Nightcap Plc purchased the entire share capital of The London Cocktail Club Limited. The London Cocktail Club and its subsidiaries and Nightcap Plc as its parent form the "Group" from 13 January 2021. The London Cocktail Club was purchased for an initial consideration of GBP5.7 million (subject to adjustment in accordance with the terms of the acquisition agreement). Over 97% of this initial consideration was satisfied by the issue of 55,378,837 new Nightcap ordinary shares, with a small cash component of GBP162,116.

Nightcap Plc was formed on 23 September 2020 with the purpose of acquiring The London Cocktail Club and seeking admission to the AIM market and identifying opportunities for expansion.

The transaction is considered a reverse acquisition in accordance with IFRS3. Details of the legally acquired group, The London Cocktail Club are given in note 12.

   12     The London Cocktail Club 

The London Cocktail Club, is an award-winning independent operator of 10 individually themed cocktail bars in nine London locations and one location in Bristol, targeting customers aged between 26 to 40 years old. The London Cocktail Club is a well-established brand which the Directors believe is highly scalable.

The principal activity of The London Cocktail Club and its subsidiaries is the operation of cocktail bars. The London Cocktail Club is incorporated and domiciled in England. The address of its registered office is 29 Sclater Street, London, England, E1 6LB.

The unaudited condensed interim financial statements for the 26 weeks ended 27 December 2020 of The London Cocktail Club have been presented below.

 
 UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE 
  INCOME 
 
 
 
 
 
                                     26 weeks ended     26 weeks ended 
                                        27 Dec 2020        29 Dec 2019 
                            Note                GBP                GBP 
-------------------------  -----  -----------------  ----------------- 
 Revenue                     1            1,968,681          3,949,135 
 Cost of goods sold                       (454,642)          (888,307) 
-------------------------  -----  -----------------  ----------------- 
 Gross profit                             1,514,039          3,060,828 
 Other income                2               25,000                  - 
 Administrative expenses                (1,588,163)        (2,759,492) 
-------------------------  -----  -----------------  ----------------- 
 Operating (loss)/ 
  profit                     2             (49,124)            301,336 
 Finance cost                             (206,435)          (204,203) 
-------------------------  -----  -----------------  ----------------- 
 Loss before tax                          (255,559)             97,133 
-------------------------  -----  -----------------  ----------------- 
 Tax (expense)/credit                             -                  - 
-------------------------  -----  -----------------  ----------------- 
 Loss for the period                      (255,559)             97,133 
-------------------------  -----  -----------------  ----------------- 
 

There is no other comprehensive income for the 26 weeks to 27 December 2020 (26 weeks to 29 December 2019: nil).

 
 UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL 
  POSITION 
 
 
                                           As at 27      As at 28 
                                           Dec 2020     June 2020 
                                  Note          GBP           GBP 
-------------------------------  -----  -----------  ------------ 
 Non-current assets 
 Intangible assets                            6,586         7,318 
 Property, plant and equipment            2,011,225     2,219,507 
 Right of use assets               3      4,540,131     4,711,230 
-------------------------------  -----  ----------- 
                                          6,557,942     6,938,055 
-------------------------------  -----  -----------  ------------ 
 Current assets 
 Trade and other receivables                579,731       701,379 
 Inventories                                130,312       139,726 
 Cash and cash equivalents                  127,943       264,488 
-------------------------------  -----  ----------- 
                                            837,986     1,105,593 
-------------------------------  -----  -----------  ------------ 
 
 Total assets                             7,395,928     8,043,648 
-------------------------------  -----  -----------  ------------ 
 
 Current liabilities 
 Trade and other payables                 1,098,453     1,196,807 
 Borrowings                               1,076,027     1,230,725 
 Lease liabilities                 4        691,117       539,012 
-------------------------------  -----  ----------- 
 Total current liabilities                2,865,597     2,966,544 
-------------------------------  -----  -----------  ------------ 
 Non-current liabilities 
 Borrowings                                 402,287       488,070 
 Lease liabilities                 4      4,483,150     4,688,581 
 Deferred tax provision                      92,246        92,246 
-------------------------------  -----  -----------  ------------ 
 Total non-current liabilities            4,977,683     5,268,897 
-------------------------------  -----  -----------  ------------ 
 
 Total liabilities                        7,843,280     8,235,441 
-------------------------------  -----  -----------  ------------ 
 Net liabilities                          (447,352)     (191,793) 
-------------------------------  -----  -----------  ------------ 
 
 Equity 
 Share capital                               10,248        10,248 
 Share premium                              178,017       178,017 
 Share based payment reserve                 92,429        92,429 
 Retained earnings                        (728,046)     (472,487) 
-------------------------------  -----  -----------  ------------ 
 Total equity attributable 
  to owners of the parent                 (447,352)     (191,793) 
-------------------------------  -----  -----------  ------------ 
 

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

 
                                   Share       Other      Share    Retained 
                                 capital    reserves      based    earnings 
                                                        payment                   Total 
                                                        Reserve 
                                     GBP         GBP        GBP         GBP         GBP 
----------------------------   ---------  ----------  ---------  ----------  ---------- 
 Balance as at 29 June 2019       10,248     178,017     92,429     159,707     440,397 
 Total comprehensive income 
  for the period                       -           -          -   (632,190)   (632,190) 
-----------------------------  ---------  ----------  ---------  ----------  ---------- 
 Balance as at 30 June 2020       10,248     178,017     92,429   (472,487)   (191,793) 
-----------------------------  ---------  ----------  ---------  ----------  ---------- 
 Total comprehensive income 
  for the period                       -           -          -   (255,559)   (255,559) 
-----------------------------  ---------  ----------  ---------  ----------  ---------- 
 Balance as at 27 December 
  2020                            10,248     178,017     92,429   (728,046)   (447,352) 
-----------------------------  ---------  ----------  ---------  ----------  ---------- 
 
 Balance as at 1 July 2019        10,248     178,017     92,429     159,705     440,399 
 Total comprehensive income 
  for the period                       -           -          -      97,133      97,133 
-----------------------------  ---------  ----------  ---------  ----------  ---------- 
 Balance as at 29 December 
  2019                            10,248     178,017     92,429     256,838     537,532 
-----------------------------  ---------  ----------  ---------  ----------  ---------- 
 
 
 CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS 
 
                                                     26 weeks ended     26 weeks 
                                                   27 December 2020     ended 29 
                                                                        December 
                                                                            2019 
 
                                         Note                   GBP          GBP 
--------------------------------------  ------  -------------------  ----------- 
 Cash flows from operating activities 
 (loss)/ profit for the period 
  before tax                                              (255,558)       97,133 
 Adjustments for: 
 Depreciation and amortisation                              525,786      530,100 
 Losses on disposal of property 
  plant and equipment                                             -          121 
 Lease Concessions                                        (177,448) 
 Revaluation of Right of Use                              (108,697)            - 
  assets 
 Interest on lease liabilities 
  and borrowings                                            206,434      204,202 
 Decrease in trade and other 
  receivables                                               121,648      165,216 
 Decrease/ (Increase) in inventories                          9,414     (30,770) 
 Decrease in trade and other 
  payables                                                (129,253)     (50,260) 
----------------------------------------------  -------------------  ----------- 
 Cash generated from operations                             192,326      915,742 
 Income taxes repaid/ (paid)                                 30,899     (65,548) 
----------------------------------------------  -------------------  ----------- 
 Net cash flows from operating 
  activities                                                223,225      850,194 
----------------------------------------------  -------------------  ----------- 
 
 Investing activities 
 Purchase of property, plant 
  and equipment                                            (36,977)    (124,470) 
 Proceeds from sale of property,                                  -            - 
  plant and equipment 
 Net cashflow in investing activities                      (36,977)    (124,470) 
----------------------------------------------  -------------------  ----------- 
 
 Financing activities 
 Interest paid                                             (77,625)     (46,333) 
 Shareholder loan repayments                              (229,863)     (20,615) 
 Loan repayments                                           (10,618)    (166,613) 
 Repayment of lease obligations                             (4,687)    (371,740) 
----------------------------------------------  -------------------  ----------- 
 Net cashflow in financing activities                     (322,793)    (605,301) 
----------------------------------------------  -------------------  ----------- 
 
 Net (decrease)/ increase in 
  cash and cash equivalents                               (136,545)      120,423 
 Cash and cash equivalents at 
  beginning of period                                       264,488      238,302 
----------------------------------------------  -------------------  ----------- 
 Cash and cash equivalents and 
  end of period                                             127,943      358,725 
----------------------------------------------  -------------------  ----------- 
 

NOTES TO THE FINANCIAL INFORMATION

Basis of Preparation

The accounting policies applied in the unaudited condensed interim financial statements for the 26 weeks ended 27 December 2020 of The London Cocktail Club are the same as those adopted in the Admission Document for the period ended 28 June 2020. The Group has not early adopted any other standard, interpretation or amendment that has been issued but is not yet effective.

Use of judgements and estimates

In preparing these condensed, consolidated interim financial statements management has made judgements and estimates that affect the application of accounting policies and measurement of assets and liabilities, income and expense provisions. Actual results may differ from these estimates.

The key judgements and key estimates can be found in the Admission Document for the period ended 28 June 2020.

   1.      Revenue 
 
                           26 weeks     26 weeks 
                           ended 27     ended 29 
                           Dec 2020     Dec 2019 
                          Unaudited    Unaudited 
                                GBP          GBP 
--------------          -----------  ----------- 
 Liquor Sales             1,968,681    3,949,135 
----------------------  -----------  ----------- 
                          1,968,681    3,949,135 
        --------------  -----------  ----------- 
 

All of The London Cocktail Club's revenue was derived from the UK for each of the periods presented.

   2.    (Loss)/ profit from operations 
 
                                            26 weeks    26 weeks 
                                            ended 27    ended 29 
                                            Dec 2020    Dec 2019 
 
 Operating (loss)/ profit is stated              GBP         GBP 
  after charging: 
---------------------------------------   ----------  ---------- 
 
 Depreciation of right of use assets         279,794     277,739 
 Depreciation of property, plant 
  and equipment                              245,259     251,572 
 Amortisation of intangibles                     732         789 
 Loss on disposal of property, 
  plant and equipment                              -         121 
 Lease Concessions                         (177,448)           - 
 Revaluation of Right of Use Asset         (108,697)           - 
 Exceptional costs                           150,582       3,989 
 Pre-opening costs                            88,250      29,894 
 Staff costs                                 821,476   1,362,211 
 Craft manufacturing operations 
  (now ceased)                                     -      11,155 
 Craft head office costs                    (34,079)      15,248 
--------------------------------------    ----------  ---------- 
 
 

During the 26 weeks ended 27 December 2020 staff costs include a credit of GBP256,104 which were paid to The London Cocktail Club under the Government Coronavirus Job Retention Scheme (2019: Nil).

Other Income

In the period to 27 December 2020, The London Cocktail Club received a discretionary grant of GBP25,000 through the local restrictions support grants (29 December 2019: nil) .

Exceptional costs

Exceptional costs of GBP150,582 for the 26 weeks ended 27 December 2020 are transaction costs relating to the AIM listing (Exceptional costs for the 26 weeks ended 29 December 2019 relate to transaction and other costs relating to a failed attempt to sell The London Cocktail Club). These costs are considered non-recurring and non-operational costs.

   3.      Right of Use Assets 
 
                           Right of use 
                                 assets 
                                    GBP 
-----------------------   ------------- 
 Cost 
 At 29 December 2019          6,064,555 
------------------------  ------------- 
 Additions                            - 
 Revaluations                         - 
 At 28 June 
  2020                        6,064,555 
------------------------  ------------- 
 Additions                            - 
 Revaluations                   108,697 
 At 27 December 2020          6,173,252 
------------------------  ------------- 
 
 Depreciation 
 At 29 December 2019          1,071,725 
------------------------  ------------- 
 Charge for the period          281,600 
 At 28 June 
  2020                        1,353,325 
------------------------  ------------- 
 Charge for the period          279,794 
 At 27 December 2020          1,633,121 
------------------------  ------------- 
 
 
 Net book value 
-----------------------   ------------- 
 At 27 December 2020          4,540,131 
------------------------  ------------- 
 At 28 June 
  2020                        4,711,230 
------------------------  ------------- 
 At 29 December 2019          4,992,830 
------------------------  ------------- 
 At 30 June 
  2019                        5,045,799 
------------------------  ------------- 
 
   4.      Lease Liabilities 
 
 
                          Lease liability 
--------------------- 
 
                                      GBP 
---------------------  ------------------ 
 At 30 June 2019                5,483,723 
 Additions                        224,770 
 Interest expense                 157,869 
 Lease payments                 (371,740) 
 At 29 December 2019            5,494,622 
---------------------  ------------------ 
 Additions                              - 
 Interest expense                 120,860 
 Lease payments                 (387,889) 
 At 28 June 2020                5,227,593 
---------------------  ------------------ 
 Additions 
 Interest expense                 128,809 
 Lease Concessions              (177,448) 
 Lease payments                   (4,687) 
 At 27 December 2020            5,174,267 
---------------------  ------------------ 
 

When leases have been renegotiated as a result of Covid-19 the gain has been taken to the income statement

Negotiations are ongoing for a number of leases which will be assessed when any commercial negotiations are concluded.

 
                     As at 27       As at 
                                       28 
 Lease liability     December   June 2020 
                         2020 
                          GBP         GBP 
-----------------  ----------  ---------- 
 Current              691,117     539,012 
 Non-current        4,483,150   4,688,581 
-----------------  ----------  ---------- 
                    5,174,267   5,227,593 
-----------------  ----------  ---------- 
 
   5.      Related parties 
 
 Transactions with related parties            26 weeks          26 weeks   52 weeks 
                                        to 27 December             to 29      to 28 
                                                  2020          December       June 
                                                   GBP              2019       2020 
                                                                     GBP        GBP 
------------------------------------  ----------------  ----------------  --------- 
  Purchase of inventories                        1,100                 -      2,175 
  Consultancy fees                              12,000                 -     12,000 
                                                13,100                 -     14,175 
 -----------------------------------  ----------------  ----------------  --------- 
  These transactions are split by related party 
   as follows: 
 
  CGCC Ltd                                       1,100                 -      2,175 
  PAF Ventures Limited                          12,000                 -     12,000 
                                                13,100                 -     14,175 
 -----------------------------------  ----------------  ----------------  --------- 
 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.

END

IR DKPBNOBKKAND

(END) Dow Jones Newswires

March 15, 2021 03:41 ET (07:41 GMT)

Nightcap (LSE:NGHT)
Historical Stock Chart
From Feb 2024 to Mar 2024 Click Here for more Nightcap Charts.
Nightcap (LSE:NGHT)
Historical Stock Chart
From Mar 2023 to Mar 2024 Click Here for more Nightcap Charts.