Shares in Nightcap PLC (AIM:NGHT) slipped over 10% on Tuesday morning as the bar operator’s acquisition of The Piano Works in London was overshadowed by a gloomy trading update.
Nightcap announced the takeover of the venue for £200,000 but warned of softer-than-expected trading over the opening months of the year.
“The group faces headwinds from ongoing rail strikes, the continuation of the cost of living crisis, above-inflation increases to business rates and other costs, and the impact of the forthcoming increase to the national living wage,” a statement read.
Integration costs following the takeovers of Dirty Martini and The Piano Works are due to come in higher-than-hoped, Nightcap added, with full-year adjusted pre-tax earnings expected to sit between £2.0 million to £2.5 million, down on £2.6 million last year.
Shares slipped 10.4% to 4.39p.