Loungers PLC on Tuesday said that its sales have grown during the first half of the year, amid new unit openings and increasing consumer confidence.
The Bristol, England-based operator of Lounge, Cosy Club and Brightside cafes and bars said it has delivered like-for-like sales growth of 4.7% for the 24 weeks to October 6. Revenue for the six-month period grew 19% to £178.3 million from £149.6 million the year before.
The growth in sales represented a continuation from Loungers’ first-quarter sales growth of 5.0%, which it said was a ‘clear demonstration’ of the group’s ability to ‘consistently outperform the broader UK hospitality market’.
The company continued to make ‘good progress’ towards its targeted pre-Covid earnings before interest, taxation, depreciation and amortisation margin level of about 14%.
Chief Executive Officer Nick Collins said: ‘I am delighted with our performance and the consistency of our sales growth, both in terms of like-for-like growth in the mature estate as well as the strength of our new openings. During the period, we have opened in 17 towns and high streets across the UK, which adds up to 37 in the last 12 months. The opening of our Ritorno Lounge on Bristol’s harbourside, where we are holding our annual general meeting today, has been our best performing new site ever.
‘From what we are seeing across our sites, UK consumers are feeling increasingly confident and want to go out and enjoy themselves across all parts of the day. That confidence, combined with the variety, breadth, flexibility and relevance of our all-day offering, is reflected in our continued sales success.’
Loungers is due to open a further 18 sites in the second half of the year, continuing its increased roll-out programme from a total of 36 new sites last year.
Shares in Loungers were up 1.5% at 270.00 pence each in London on Tuesday morning.
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