REG - Loungers PLC - Trading update for the 53 weeks ended 21 April 24

LoungersAnnouncement

26/04/2024 07:00

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RNS Number : 0778M  Loungers PLC  26 April 2024

 

 

26 April 2024

 

Loungers plc

("Loungers" or the "Group")

 

Trading update for the 53 weeks ended 21 April 2024

 

Continued strong like for like sales growth allied to an accelerated site
roll-out, with 36 new openings in the year, expected to deliver EBITDA ahead
of expectations

 

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 53 weeks ended 21 April 2024 ("FY24").

 

We are pleased to have delivered record total revenue for the financial year
of £353.5m, up 24.7% on the previous year (FY23: £283.5m).  Excluding the
benefit of the 53(rd) week total sales were up 22.2%.  This sales performance
reflects both continuing strong like for like sales growth (+7.5% across the
53 weeks) and the ongoing success of our new site opening programme.

 

The strength of our sales performance has been accompanied by disciplined
management of costs and a continued easing of inflationary cost pressures and,
accordingly, we expect EBITDA for FY24 to be ahead of market expectations.

 

Our balance sheet remains strong, with non-property net debt at 21 April 2024
of £9.7m (16 April 2023: £6.1m).  Year-end net debt reflects the further
acceleration of our site roll-out programme during the year.

 

During FY24 the Group opened 36 new sites, a record number (FY23: 29 new
sites), comprising 33 Lounges, one Cosy Club and two Brightsides.  At year
end the portfolio totalled 257 sites.  Subsequent to the year end, we have
opened a further Lounge in Ely, Cambridgeshire.  The FY24 cohort of sites has
traded well since opening, giving us confidence as to the continuing strength
of the pipeline.

 

Loungers expects to update the market next on 9 July 2024 when we will
announce our preliminary results for the 53 weeks ended 21 April 2024.

 

Nick Collins, CEO, commented:

 

"I am delighted with our performance over the year. We have consistently
out-performed the sector on a like for like basis whilst having delivered a
record 36 new site openings. As ever, it's our continued focus on menu
innovation, value for money and exceptional hospitality that is driving the
strength of our performance in both the mature estate and our new openings.

 

"As we start the new financial year we are looking ahead with optimism. Our
experience suggests that the UK economy is holding up well and we are well
positioned to deliver continued growth."

 

 

For further information please contact:

 

 Loungers plc                                                   Via Powerscourt

 Nick Collins, Chief Executive Officer

 Stephen Marshall, Chief Financial Officer

 Houlihan Lokey Advisory Limited (Financial Adviser and NOMAD)  Tel: +44 (0) 20 7839 3355

 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 / Andrew Clark

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

 Rob Greening / Nick Hayns / Elizabeth Kittle

 

Notes to Editors

 

Loungers operates through its three established complementary brands - Lounge,
Cosy Club and Brightside - 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 220 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.

 

Brightside is a roadside dining concept and was launched 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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