Bar operator Loungers posts lower earnings after government Covid support ends

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Cafe and bar operator Loungers has said it delivered “like for like sales growth” of 4.7 per cent.
Cafe and bar operator Loungers has said it delivered “like for like sales growth” of 4.7 per cent.

Bar group Loungers has posted lower earnings for the half-year, after it benefited from government aid with VAT and business rates last year.

The Cosy Club and Lounges operator posted 53 per cent revenue growth, compared to the equivalent pre-pandemic half-year period in 2020.

However, adjusted EBITDA came in at a subdued level compared to the year before, with the company booking £19.3m, versus £27.1m.

During the pandemic, the government reduced the VAT rate on food and soft drink sold by hospitality, as well as introducing business rates relief.

The firm said it had opened 11 new sites in the period, including eight Lounges and three Cosy Clubs, while an additional four sites had been opened after the 2 October cut-off for the half-year end.