Loungers flags robust first-half growth in update

Hospitality operator Loungers announced a promising trading update for the 24 weeks ended 1 October on Friday, highlighting robust year-on-year like-for-like sales growth of 7.7%.

The AIM-traded firm said that was a 2% acceleration from the prior 12 weeks, adding that compared to the pre-pandemic figures from 2019, like-for-like sales were ahead 25%.

Total revenue for the first half came in at £149.6m, making for a substantial 22.3% increase compared to £122.3m a year earlier.

Loungers did report an increase in non-property net debt from £9.5m on 2 October 2022 to £14.3m as of 1 October this year.

The board put that down to the timing of September month-end working capital cash outflows, adding that it did not signify an underpinning fiscal concern.

Loungers said it had opened 16 new sites during the first half, compared to 11 in the same period last year, expanding its portfolio to 238 sites.

Moreover, with one Lounge site already launched in the second half and an additional 17 scheduled to open, the group said it was on course to inaugurate 34 new locations in the current financial year, setting a new record for the company.

“I am delighted with our strong trading performance across both the mature estate and our new openings,” said chief executive officer Nick Collins.

“Our consistent sales growth reflects the continued evolution of our offer and the resilience of the UK consumer and high street.

“We have now opened 34 sites in the past 12 months, creating around 1,000 jobs in the process, and 72 sites since the last Covid lockdown.”

Loungers said it would update the market on 28 November with its half-year results.

At 0903 BST, shares in Loungers were up 3.34% at 193.25p.

Reporting by Josh White for Sharecast.com.