In corporate news, Nightcap (AIM: NGHT), the owner of Cocktail Club, announced its decision to delist from the London Stock Exchange and cautioned that underlying profits would fall short of market expectations due to a “challenging” trading environment.
In an investor update, the AIM-listed group stated that its current valuation “does not reflect” its potential and plans to re-register as a private company.
Gareth Edwards, chair of Nightcap, commented:
“We have not taken this decision lightly. However, following an extensive review, the board has unanimously concluded that it is in the best interests of the company and our shareholders to cancel our AIM admission and re-register as a private limited company.”
The board believes that Nightcap’s current public market valuation does not reflect the underlying potential of the business or its achievements to date and that this situation is unlikely to improve in the short-to-medium term.
Nightcap, which operates bar chains including Dirty Martini and the Cocktail Club, will put the decision to a shareholder vote on July 17, requiring investor approval. The planned delisting is set for July 29.
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