REG - Loungers PLC - Trading update for the 24 weeks ended 1 October 23

LoungersAnnouncement

13/10/2023 07:00

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RNS Number : 9693P  Loungers PLC  13 October 2023

13 October 2023

 

Loungers plc

("Loungers" or the "Group")

 

Trading update for the 24 weeks ended 1 October 2023

 

Acceleration in like for like sales growth and 16 new sites opened during the
period

 

Loungers, a leading operator of all-day café/bar/restaurants across the UK
under the Lounge, Cosy Club and Brightside brands, today announces a trading
update for the 24 weeks ended 1 October 2023.

 

The Group has delivered one year like for like (LFL) sales growth of 7.7% over
the 24 weeks to 1 October 2023.  This represents an acceleration from the LFL
sales growth of 5.7% previously reported for the 12 weeks to 9 July 2023 and
reflects a continuation of our strong LFL sales performance since the
pandemic. Relative to the 24 weeks ended 6 October 2019, LFL sales are up
25.0%. The Group is pleased to have delivered total revenue for H1 FY24 of
£149.6m, up 22.3% on the previous year (H1 FY23: £122.3m).  Inflationary
pressures continue to diminish in line with our expectations.

 

Our balance sheet remains strong with non-property net debt at 1 October 2023
of £14.3m (2 October 2022: £9.5m), reflecting the timing of September month
end working capital cash outflows.

 

The Group has opened 16 new sites during H1 FY24 (H1 FY23: 11 new sites),
taking the portfolio to 238 sites as at 1 October 2023.  One Lounge site has
been opened to date in the second half and, with a further 17 sites scheduled
to open, we expect to open a total of 34 new sites in the current financial
year, a record number.

 

Loungers will next update the market on 28 November 2023 when we announce our
half year results.

 

 

Nick Collins, CEO, commented:

 

"I am delighted with our strong trading performance across both the mature
estate and our new openings. Our consistent sales growth reflects the
continued evolution of our offer and the resilience of the UK consumer and
high street.  We have now opened 34 sites in the past 12 months, creating
around 1,000 jobs in the process, and 72 sites since the last Covid lockdown.
 With a great pipeline of further openings in front of us I have never felt
more optimistic about our prospects.  None of this would be possible without
our amazing team, and as ever I would like to say a massive thank you to them
for their hard work."

 

 

 

For further information please contact:

 

 Loungers plc                                             Via Powerscourt

 Nick Collins, Chief Executive Officer

 Gregor Grant, Chief Financial Officer

 Houlihan Lokey UK Limited (Financial Adviser and NOMAD)  Tel: +44 (0) 20 7484 4040

 Sam Fuller / Tim Richardson

 Liberum Capital Limited (Joint Broker)                   Tel: +44 (0) 20 3100 2000

 Andrew Godber / John Fishley

 Peel Hunt LLP (Joint Broker)                             Tel: +44 (0) 20 7418 8900

 Dan Webster / George Sellar

 Powerscourt (Financial Public Relations)                 Tel: +44 (0) 20 7250 1446

 Rob Greening / Nick Hayns / Elizabeth Kittle

 

 

 

 

Notes to Editors

Loungers operates through its two established complementary brands - Lounge
and Cosy Club - in the UK hospitality sector.  A Lounge is a neighbourhood
café/bar combining elements of coffee shop culture, the British pub and
dining. There are 201 Lounges nationwide.  Lounges are principally located in
secondary suburban high streets and small town centres.  The sites are
characterised by informal, unique interiors with an emphasis on a warm,
comfortable atmosphere, often described as a "home from home". Cosy Clubs are
more formal bars/restaurants offering reservations and table service but share
many similarities with the Lounges in terms of their broad, all-day offering
and their focus on hospitality and culture.  Cosy Clubs are typically located
in city centres and large market towns.  Interiors tend to be larger and more
theatrical than for a Lounge, and heritage buildings or first-floor spaces are
often employed to create a sense of occasion.  There are 35 Cosy Clubs
nationwide.

Loungers launched its third brand, a roadside dining concept called
Brightside, in November 2022. The first Brightside location opened on the A38,
south of Exeter, in February 2023, with the second opening in Saltash near
Plymouth in June 2023 and the third in Honiton on the A303 in August 2023.

 

 

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