Loungers reports 17% lfl growth, will open 30 sites

The business, which operates Lounge and Cosy Club café/bar/restaurants, added its balance sheet “remains strong” with non-property net debt at 2 October 2022 of £9.5m (3 October 2021: £11.9m), reflecting the timing of September month end working capital cash outflows.

Since the start of its financial year, the group has opened 11 new sites, comprising eight Lounges and three Cosy Clubs, taking the portfolio to 206 sites as of today.  In line with its recently accelerated roll-out plans, Loungers expects to open a further 19 sites in the current financial year.

Outperformance of market

Loungers chief executive Nick Collins said: “Loungers continues to thrive and I am delighted with our consistent outperformance of the market, thanks to the fantastic efforts of our teams and the hospitality they provide.

“We are particularly pleased with the strong performance of our new openings and we are on track to open 30 sites this year.

“As our strong sales performance demonstrates, neither uncertainty in respect of the wider UK economy nor consumer attitudes towards discretionary spending have, to date, impacted our sales.”

Trends will remain

Collins continued: “We are continuing to benefit from more people staying local, working from home and supporting their community and high street, which are trends that we believe are here to stay.

“We are operating in a particularly inflationary environment and we are working hard to mitigate inbound cost pressures and to maintain the value for money principles that are so important to our customers.

“We continue to focus on getting the right balance and take confidence from the positioning of both Lounge and Cosy Club and their market-leading track records.”

Loungers will next update the market on 30 November when it expects to announce its half-year results.