Loungers announces plans to open further 10 sites

By Nikkie Thatcher contact

- Last updated on GMT

Roll-out strategy: Loungers' pipeline of future sites is as strong as it ever has been, CEO Nick Collins (left) says
Roll-out strategy: Loungers' pipeline of future sites is as strong as it ever has been, CEO Nick Collins (left) says

Related tags: Multi-site pub operators, Loungers, Finance, Property

Multi-site operator Loungers is looking to expand its 181-strong estate by 10 venues in the current financial year, it has revealed.

In a trading update for the 24 weeks to 3 October 2021, the business stated since the start of the current financial year, it has opened 13 sites, comprising 12 Lounges and one Cosy Club.

Furthermore, Loungers reported over the 20 weeks to 3 October, it saw like-for-like sales growth of 26.6%, compared to 20 May to 6 October 2019.

Net debt at 3 October 2021 was at £11.9m, excluding a further £5.6m of outstanding rent and deferred liabilities payable to HMRC.

Consistently strong sales

Loungers CEO Nick Collins said: “Our like-for-like sales have been consistently strong since reopening, across all site age cohorts and both brands.

“In addition, I am particularly pleased with the strength of performance in the new sites we have opened in this financial year.

“Loungers continues to thrive as we put Covid behind us and manage the current challenges facing our sector.

“This success reinforces our roll-out strategy and we look ahead with confidence, with our pipeline of future sites as strong as it ever has been.

“I would like to say a special thank you to our teams across England and Wales for their fantastic performance over what was, a demanding summer trading environment.”

Last update

In a previous trading update in July, the company reported sales across its estate were up by almost a quarter​ (23.7%) in the nine weeks from 17 May to 18 July 2021 against the same period in 2019.

Loungers also recorded £78.3m in revenues in the 52 weeks ended 18 April 2021 – down from £166.5m in the previous year – while its adjusted pre-tax loss deepened from £2m to nearly £13.4m.

On top of this, the operator’s non-property net debt of £34.2m on 18 April 2021 reduced to £18.2m by 11 July 2021, while the operator also reported that seven new sites have opened to date in the current financial year as it looks to return to opening 25 sites per year.

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