REG - Loungers PLC - Trading Update

LoungersAnnouncement

26/04/2022 07:16

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RNS Number : 2821J  Loungers PLC  26 April 2022

 

Loungers plc

("Loungers" or the "Group")

 

Loungers announces record sales for the 52 weeks ended 17 April 2022

 

Loungers, the operator of 164 Lounge cafe-bars and 31 Cosy Club
restaurant-bars, today announces a trading update for the 52 weeks ending 17
April 2022 ("the financial year").

 

Our significant outperformance of the market has been maintained over the
financial year. Whilst trading during December was subdued as a result of the
Omicron variant, it recovered strongly post-Christmas, allowing us to deliver
record total revenue for the financial year of £237.3m.

 

The Group has continued to deliver a very strong like for like sales ("LFL")
performance of +22.1% (net) over the 48 weeks to 17 April 2022.  LFL sales in
the second half rebounded convincingly post-Christmas, evidencing once again
the relevance, resilience and popularity of our brands.

 

                                Two year LFL      Three year LFL
                                40 weeks to       48 weeks to
                                20 February 2022  17 April 2022

 Net - including VAT benefit    +17.7%            +22.1%
 Gross - excluding VAT benefit  +9.3%             +14.2%

 

In light of the Group's strong performance post-Christmas we expect
profitability for the financial year to be slightly ahead of market
expectations.

 

Net debt (pre IFRS16) at 17 April 2022 was £1.2m, excluding a further £1.4m
of outstanding rent liabilities, to give underlying net debt of £2.6m.  This
represents a reduction in underlying net debt of £44.9m compared to 18 April
2021.

 

Over the course of the financial year the Group opened a record 27 new sites,
comprising 26 Lounges and one Cosy Club, taking the portfolio to 195 sites as
of today.  We continue to be very pleased with the strength of these
openings.

 

Loungers expects to next update the market on 13 July 2022 when we announce
our preliminary results for the year ended 17 April 2022.

 

Nick Collins, CEO, commented:

 

"I am delighted with trading in both the Lounge and Cosy Club brands over the
financial year. We continued to deliver underlying, volume driven like for
like sales growth despite the uncertain consumer backdrop and we are
well-positioned to increase share in the coming months through our new site
opening programme and value for money offer. It has been a phenomenal effort
from our team to open 27 fantastic new sites in what has at times been a
difficult year. The new site pipeline is in excellent shape and we are
optimistic as we look ahead to FY23."

26 April 2022

 

 

 

 

 

For further information please contact:

                                                          Via Instinctif Partners

 Loungers plc

 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

 Instinctif Partners (Financial Public Relations)         Tel: +44 (0) 207 457 2010/2005

 Justine Warren / Matthew Smallwood

 

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