MARKET REPORT: Cheers! Nightcap in talks to buy Revolution bars

AIM-listed late-night bars group Nightcap is looking to shake up the sector in a cheeky bid for Revolution Bars.

Revolution met Nightcap to discuss proposals up to and including a full offer for the struggling business, and added that talks are not part of the formal sales process it unveiled in early April.

The bar operator said then it had received commitments from investors under a £12.5million fundraise to keep it afloat as it undergoes a restructuring.

In January, it announced that eight sites would be shut and has said up to a quarter of Revolution’s 80 venues could be closed.

Nightcap, co-founded by former Dragons Den star Sarah Willingham, is assessing options including buying certain sites or operating subsidiaries of Revolution.

Takeover bid: In January, Revolution Bars announced that eight sites would be shut and has said up to a quarter of its 80 venues, could be closed

Nightcap acquired the Dirty Martini cocktail chain and central London brasserie Tuttons in a £4.65million deal last year. 

Revolution, which has a market cap of just north of £4million, rose 13.8 per cent, or 0.2p, to 1.65p, while Nightcap was up 2.4 per cent, or 0.1p, at 4.25p.

The FTSE 100 was up 50.91 points, or 0.6 per cent, at 8172.15 to resume its run of closing highs, but still below this week’s all-time peak. 

The FTSE 250 found gains after recent falls, adding 125.74 points, or 0.6 per cent, at 20,052.33.

Smurfit Kappa rose 5.8 per cent, or 200p, to 3674p as earnings rose and it reported more improvements in demand in Europe and the Americas. 

In September, the paper and packaging firm agreed to merge with US firm WestRock to form Smurfit Westrock.

Meanwhile, Standard Chartered rose 8.8 per cent, or 61p, to 756p, a six-month high, after the emerging markets-focused lender’s first-quarter profit delivered a significant beat to expectations, driven by non-interest income growth.

Stock Watch – Kinovo 

Kinovo rose 21.5 per cent, or 8.8p, to 49.8p as the London property services group expects results for the year ended March 31 to beat expectations.

It now anticipates a 22 per cent advance in earnings to £6.7million, up from £5.5million, on revenues of around £64million.

Chief executive officer David Bullen said a strong performance reflected the strength of its growth strategy following legacy issues with its former construction subsidiary.

Melrose led FTSE 100 losses – down 2.9 per cent, or 18.2p, to 603p – despite strong first-quarter trading. 

It was boosted by strength in its Engines division, which saw revenues jump by 21 per cent.

It is now a ‘pure play’ aerospace business, based around its acquisition of GKN, having spun off its automotive engineering businesses as Dowlais last April.

Spectris lost 2 per cent, or 64p, to 3208p as the supplier of high-tech instruments, test equipment and software for industry reiterated its annual guidance, although it reported an 8pc fall in first-quarter like-for-like sales.

TI Fluid Systems rose 4.3 per cent, or 5.8p, to 142.2p as the fluid engineering specialist held guidance after first-quarter revenues fell 0.4 per cent, in line with expectations.

International Personal Finance added 3.3 per cent, or 3.5p, to 109p, after a solid first quarter, with customer lending rising 5 per cent.

But insurer Hiscox fell 1.8 per cent, or 21.99p, to 1175p although it reported healthy growth in first-quarter premiums despite a drop in the London market.

Surface Transforms fell 62.3 per cent, or 1.77p, to 1.08p as the maker of carbon-ceramic brake discs raised £6.5million in a share placing. 

And Smiths News rose 3 per cent, or 1.6p, to 55p as it said it was on track to deliver full-year results in line with expectations.

This post first appeared on Dailymail.co.uk