GCINightcap acquires The Piano Works, raises £1.0m at 22% premium
() , owner and operator of 46 premium bars, announced the acquisition of The Piano Works, a live entertainment concept currently operating at Nightcap's Barrio Covent Garden and Farringdon venues. Nightcap is also acquiring The Piano Works' large warehouse site in Farringdon.
The Piano Works is an interactive live music entertainment concept, typically involving pianists, vocalists and other musicians performing an audience-curated playlist, accompanied by premium food, drinks and cocktail offerings. Since November 2023, The Piano Works has had a successful residency within Nightcap's Barrio Covent Garden venue, which resulted in a material uplift in revenues compared to management forecasts under the Barrio brand for the 4 weeks to December 31, 2023.
This made a notable contribution to Nightcap's Q4 revenue performance as previously announced. Therefore, the group decided to make The Piano Works a permanent fixture at Covent Garden and roll it out nationally along with its other brands in the Nightcap portfolio.
STAMP Entertainment, a recently incorporated wholly-owned subsidiary of Nightcap, has entered into the asset purchase agreement. Nightcap is paying a total consideration of £200k for the assets. The deal will see the current directors of The Piano Works operator TDC Concepts become minority shareholders in STAMP.
Separately, Nightcap announced a £1.0m fundraise through a subscription at 6p, representing a premium of c. 22% to 's closing mid-market price on February 19, 2024.
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Nightcap has successfully acquired The Piano Works, a staple at its Barrio Covent Garden venue, expected to yield material benefits and boost forward revenues. The acquisition will add an established interactive live music concept with a dedicated following to Nightcap's entertainment offering, building on its successful residency at Barrio Covent Garden. Adding the live music component to Nightcap's portfolio will allow it to develop the concept and its fanbase, aided by the acquisition of The Piano Works' existing venue in Farringdon.
As mentioned, The Piano Works substantially boosted Nightcap's Q4 revenues, prompting the acquisition. Based on unaudited management accounts for the year to June 30 2023, The Piano Works operator TDC Concepts generated revenues of c. £4.6m, site EBITDA of c. £0.6m, and EBITDA after head office costs of c. £0.1m. The Farringdon site had an unaudited total assets value of approximately £0.7m on June 30 2023.
The £1.0m fundraise, executed at a 22% premium to yesterday's closing price, should provide further working capital to develop The Piano Works and other portfolio assets. Nightcap said it expects FY24 revenues to be in line with expectations, with adjusted EBITDA within the range of £2.0-2.5m. Interim results are expected in mid-March. The group still carries momentum from its IPO in 2021 when it owned 10 bars, which has since grown to 46 following The Piano Works acquisition.
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