Trading update for the 53 weeks ended 21 April 24
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 53rd 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:
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Loungers plc Nick Collins, Chief Executive Officer Stephen Marshall, Chief Financial Officer
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Via Powerscourt |
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Houlihan Lokey Advisory Limited (Financial Adviser and NOMAD) Sam Fuller / Tim Richardson
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Tel: +44 (0) 20 7839 3355 |
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Liberum Capital Limited (Joint Broker) Andrew Godber / John Fishley
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Tel: +44 (0) 20 3100 2000 |
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Peel Hunt LLP (Joint Broker) Dan Webster / Andrew Clark
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Tel: +44 (0) 20 7418 8900 |
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Powerscourt (Financial Public Relations) Rob Greening / Nick Hayns / Elizabeth Kittle
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Tel: +44 (0) 20 7250 1446 |
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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