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Wed 13th Jan 2021 - Update: Nightcap listed on AIM, Just Eat order growth
Nightcap to begin trading on AIM today: Bar company Nightcap will begin trading today on AIM. Upon Admission, Nightcap will acquire the London Cocktail Club for an initial consideration of £5.7 million. The initial consideration is being satisfied by the issue of 55,378,837 new Nightcap ordinary shares and a cash payment of £162,116. The London Cocktail Club is an award-winning independent operator of ten individually themed cocktail bars in nine London locations and one location in Bristol, targeting customers aged between 26 to 40 years old. In conjunction with Admission, Nightcap has raised gross proceeds of £4 million through a fundraising at an issue price of ten pence per share. Upon Admission, the company will have a market capitalisation (at the issue price) of approximately £13.5 million. Nightcap was established in 2020 to take advantage of the significant changes taking place within the premium bars segment and the hospitality industry more generally in the UK. The board of Nightcap believes that the company will be able to take advantage of an exceptional opportunity to acquire and grow ‘drinks-led’ hospitality concepts that focus on the consumers’ social experience over the coming years. The board considers the London Cocktail Club to be a scalable model that is well-positioned to take advantage of the current opportunity in the hospitality segment of the UK property market for taking on attractively priced sites against a backdrop of decreased competition. In addition to scaling the London Cocktail Club, Nightcap intends to identify and acquire other drinks-led hospitality groups that are considered by the board to have significant potential for additional value creation through roll-out, refinancing, turnaround or market repositioning. Sarah Willingham, chief executive of Nightcap, said: “To have floated Nightcap during a national lockdown is testament to the strength of our extended team, our advisers and our brokers Allenby Capital, the London Cocktail Club shareholders and the welcome support of our new investors. They have all seen our vision for the future and our determination to help the hospitality sector shine once again. I couldn’t be prouder to be part of this great industry. Our admission to trading on AIM today marks the start of Nightcap’s mission of becoming the UK’s leading bar group by supporting entrepreneurs and businesses that have taken such a hit during the pandemic. Through targeted investment and our collective expertise, we believe there is an exceptional opportunity to develop and grow fundamentally sound businesses – businesses that have suffered a tough time, are under pressure and may not have sufficient capital to grow. Hospitality currently faces the worst challenges in our lifetime but we know that with the roll out of the covid vaccines brighter days are coming. When the restrictions are lifted, people will want to enjoy their freedom by having fun and coming out to socialise again. We will get back to doing what we do best – looking after our customers, opening new venues and giving great people meaningful careers.”

Just Eat reports order growth of 57%: Just Eat has reported that quarter order growth accelerated to 57% in the Fourth Quarter of 2020. Jitse Groen, chief executive of Just Eat, said: “The fourth quarter of 2020 marks our third consecutive quarter of order growth acceleration. Our investment programme is very successful and has led to significant market share gains in most of our countries. The progress in the UK is particularly exciting; order growth of 58% and we have increased our delivery orders nearly five-fold in the fourth quarter of 2020 compared with the same period in 2019. In 2021, we will continue to invest in price leadership, improving our service levels and expanding our offering to restaurants and consumers.” The company added: “The company has put tremendous effort into improving the Just Eat UK business. The marketing strategy was changed and marketing investments have been increased. The UK sales force has doubled compared with the previous year, driving significantly increased restaurant choice for consumers, and accelerating the roll-out of our logistical network. Scoober has only recently been launched in London and many cities in the UK will follow. This allows Just Eat to further add premium restaurants to its offering, with very short delivery times, excellent service, and much lower delivery fees than its competitors. Delivery Orders in the UK surged 387% in the fourth quarter of 2020 compared with the same period in 2019. Management expects that Just Eat’s Delivery Orders only (excluding Marketplace Orders) will soon overtake the total food orders of the UK’s #3 player. The company has launched a new loyalty programme in Canada, which management believes will further support the high growth. In Germany and the Netherlands, order growth has been extraordinary, adding more than 12 million orders and ca. four million orders respectively in the fourth quarter of 2020 compared with the same period last year. Orders in Rest of the World grew 47% in the fourth quarter of 2020 compared with the same period last year, with Australia (+166%) in particular demonstrating outstanding performance. For the full year 2020, management expects revenue growth of more than 50% with an adjusted Ebitda margin of approximately 10%, reflecting significant investments in Delivery in the fourth quarter of 2020. To capitalise on the strong momentum from our investment programme, we will continue to invest heavily and prioritise market share over adjusted Ebitda. Just Eat has implemented a wide range of measures to support restaurants, couriers, healthcare workers and charitable initiatives, resulting in ca. €45 million in support worldwide in 2020. All regulatory approvals relating to the Grubhub transaction have been obtained, and the Extraordinary General Meeting of Just Eat approved the transaction on 7 October 2020. Subject to satisfaction of conditions, completion of the transaction is anticipated to occur in the first half of 2021.”

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