Loungers eyes profit ahead of market expectations after post-Omicron rebound in sales
Bar operator Loungers now anticipates its yearly profit to be “slightly ahead” of market expectations, after a strong performance after Christmas.
In a trading update for the year to 17 April, the firm said it “recovered strongly” after a period of “subdued” trading in December, due to the Omicron variant and related Covid measures.
The business, which operates 164 Lounge cafe-bars and 31 Cosy Club restaurant-bars, posted a record £237.3m total revenue for the financial year.
Like for like sales were also up 22.1 per cent over the 48 weeks to 17 April, on a three year comparison basis.
Net debt stands at £1.2m, with an exclusion of a further £1.4m of outstanding rent liabilities, to give underlying net debt of £2.6m. Underlying net debt has fallen £44.9m since 18 April 2021.
Nick Collins, CEO, said: 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.”
Shares were lifted around five per cent in early trading on Monday morning.