Loungers PLC on Tuesday reported a jump in profit amid an optimistic outlook, noting that its pipeline of new sites was ‘as strong as ever’.
The Bristol, England-based operator of Lounge, Cosy Club and Brightside cafes and bars reported that revenue in the 53 weeks ended April 21 jumped 25% to £353.5 million from £283.5 million the year before.
Pretax profit surged 56% to £11.4 million from £7.3 million.
The company pays no dividend.
Loungers said a record 36 new sites opened during the recent year, 7 sites more than in the prior year.
Regarding its Brightside roadside dining concept it had launched in November 2022, Loungers said that ‘customer reaction certainly suggests that the demand is there’.
Looking ahead, Loungers said it continues to feel ‘very positive’ about the outlook, highlighting it was ‘in the best possible position to deliver further growth and margin expansion in FY25’.
It noted that over the 11 weeks since the financial year-end its like-for-like sales have been up 5.0%. ‘Our new site openings continue to perform exceptionally well, achieving record levels of sales, and our pipeline of new sites is as strong as ever,’ Loungers added.
Chief Executive Officer Nick Collins said: ‘The improving macroeconomic environment, with falling interest rates and declining inflation, adds to our confidence in Loungers’ trading prospects for the coming year. In the longer term, we continue to believe that 665 sites is a conservative target.’
Loungers currently has 226 Lounge sites, 35 Cosy Clubs, and 3 Brightside locations.
Loungers shares were 0.4% higher at 285.10 pence each on Tuesday morning in London.
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