Losses grow at operator of 46 bars across the UK

The group said it will continue to target more acquisitions amid plans to double in size

The company is led by former Dragons’ Den star Sarah Willingham (Nightcap/PA)

Cocktail bar operator Nightcap has revealed higher losses and cautioned over “challenging” trading since the start of the year.

However, Sarah Willingham, chief executive of the business, said it “has gone through the worst of this downturn”.

The boss of the 46-strong bar group said conditions will remain challenging for the next few months, but predicted it will see a gradual recovery later this year after expected reductions in inflation, energy costs and interest rates.

It came as the owner of the Cocktail Club and Dirty Martini venues revealed sales of £33.4 million for the six months to December 31, compared with £23.5 million over the same period a year earlier.

Sales were boosted by the companies’ continued expansion through acquisitions.

This strategy continued into 2024, with it announcing a deal to buy the Piano Works bars out of administration last month.

The group said it will continue to target more acquisitions amid plans to double in size in the “medium term”.

Nightcap also confirmed that it dropped to a £1.8 million pre-tax loss for the past half-year, from a £0.9 million loss a year earlier.

It said it came amid a continued impact from train strikes and “higher than expected” integration costs for its Dirty Martini brand.

The firm added that “trading since the start of 2024 has been challenging, in line with reports from across the hospitality sector”.

Ms Willingham said: “We set out to build a great business at the back end of Covid and the economy has moved through several additional challenges from the energy crisis and rail strikes to interest rates, inflation and cost-of-living crisis – throwing just about everything at us.

“I believe this environment is where some of the best businesses are built.

“With a rapidly changing landscape away from nightclubs and sticky dancefloors to late night party bars which are safer, more flexible and more inclusive environments, I believe that no other bar group is as well positioned to take advantage than Nightcap with the brands and estate that we have acquired and built over the last three years.”

Shares in the business were down 1.2% in early trading.