Nightcap Announces Intention to Delist from AIM Amidst Valuation Concerns

Nightcap PLC, a London-based bars operator, intends to leave AIM due to its public market valuation not aligning with its business potential. The company conducted a review to assess the pros and cons of staying listed. Chair Gareth Edwards states that the current share price doesn't reflect the firm's achievements or growth prospects, and the company has successfully accessed non-institutional funding at premium rates since May 2021. Shares fell by 45% from the previous day.

Nightcap PLC (NGHT), a London-based operator of 46 bars, announced its intention to leave the AIM (Alternative Investment Market) due to a disconnect between its public market valuation and its business potential [1]. This decision follows a comprehensive review conducted by the company, which assessed the pros and cons of remaining listed.

The rationale behind Nightcap's departure from AIM lies in the mismatch between its current share price and its achievements and growth prospects. Gareth Edwards, Nightcap's Chair, stated that the market valuation does not reflect the company's true worth [1]. Moreover, Nightcap has successfully accessed non-institutional funding at premium rates since May 2021, indicating that alternative funding sources are available and effective [1].

This news comes as Nightcap announces a change in its leadership team. Toby Rolph, the Chief Financial Officer (CFO) since the company's initial public offering (IPO) in 2021, is stepping down from his role. Richard Haley, a seasoned finance executive with extensive experience in larger consumer-facing businesses, has been appointed as Interim CFO [1].

Despite the challenging market conditions and the decision to leave AIM, Nightcap remains optimistic about its future. Sarah Willingham, the company's CEO, expressed her gratitude to Toby for his significant contributions and welcomed Richard Haley to the team [1]. Willingham also highlighted Nightcap's goal of becoming the UK's leading bar business and expressed confidence in the company's ability to achieve this objective.

Sources:

[1] Nightcap plc. (2023, November 30). Directorate change and intention to leave AIM. Retrieved from https://otp.tools.investis.com/clients/uk/nightcap_plc/rns/regulatory-story.aspx?cid=2620&newsid=1736466