Trading update for the 24 weeks ended 1 October 23

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 Nick Collins, Chief Executive Officer Gregor Grant, Chief Financial Officer	Via Powerscourt
Houlihan Lokey UK Limited (Financial Adviser and NOMAD) Sam Fuller / Tim Richardson	Tel: [phone]
Liberum Capital Limited (Joint Broker) Andrew Godber / John Fishley	Tel: [phone]
Peel Hunt LLP (Joint Broker) Dan Webster / George Sellar	Tel: [phone]
Powerscourt (Financial Public Relations) Rob Greening / Nick Hayns / Elizabeth Kittle	Tel: [phone]

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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