Loungers to open 18 new venues in six months
Loungers reported that total revenues grew by 19.2% over the 24 weeks to October 6
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Cafe bar business Loungers has said it is on track to open another 18 venues in the next six months as it revealed higher sales driven by its expansion plan.
Shares in the London-listed business, which runs 273 venues across its Lounge, Cosy Club and Brightside brands, ticked slightly higher on Tuesday morning.
Nick Collins, chief executive of the group, said he was “delighted” with its recent performance and sales growth.
He added that customers have seemed “increasingly confident” with their spending so far this year.
Loungers reported that total revenues grew by 19.2% to £178.3 million over the 24 weeks to October 6.
Growth was driven by the opening of 17 new venues over the period but like-for-like sales were still up 4.7% year-on-year.
The hospitality group said it would continue with its expansion strategy, with 18 more sites to open over the second half of its financial year to April.
It also revealed that it reduced its debts, with non-property net debt falling to £12.2 million from £14.3 million a year earlier.
Mr Collins said: “During the period we have opened in 17 towns and high streets across the UK, which adds up to 37 in the last 12 months, and enormous credit is due to the hard work and professionalism of our amazing teams.
“From what we are seeing across our sites, UK consumers are feeling increasingly confident and want to go out and enjoy themselves across all parts of the day.
“That confidence, combined with the variety, breadth, flexibility and relevance of our all-day offering, is reflected in our continued sales success.”
Panmure Liberum analyst Anna Barnfather said “it is hard to find a company in better health or with better prospects in this space” following the update.