Adjusted EBITDA rose from £44.2m to £55m, a rise of 24.4%, while the adjusted EBITDA margin grew by one percentage point to 13.5% (2024: 12.5%).
The group, whose portfolio encompasses the Lounge, Cosy Club and Brightside brands, says the sales performance reflects both continuing strong growth across its mature estate and the ongoing success of its new site opening programme.
During the year, the group opened another 35 sites comprising 33 Lounges, one Cosy Club and one Brightside, and also relocated one of its Lounges, Pinto Lounge in Banbury, to a larger location.
Takeover costs
It also closed one site, Castano Lounge in Ealing Broadway.
At the year’s end, Loungers operated 291 sites across England and Wales. It has since passed the 300 site mark.
During the year, Loungers underwent a delisting process, which completed on 11 February 2025 and the group removed its shares from AIM on 12 February 2025.
It was subsequently acquired by CF Exedra Bidco Limited, which is indirectly owned by funds managed by affiliates of Fortress Investment Group LLC and Lion Capital LLP.
Pre-tax profit for the year fell from £11.4m to £3.7m, however, the period included a net exceptional pre-tax charge of £7.9m, attributed to takeover costs.
Operational improvements
Administrative expenses also rose by around £30m.
At the year end, the group reported net assets of £160.7m (2024: £156.4m) and net cash of £13.8m.
Looking ahead, the group’s directors intend to continue to pursue ‘an organic growth strategy’, driven principally by the rollout of new Lounge and Cosy Club sites and an ongoing focus on operational improvements to drive further sales and margin improvements across the existing estate.
Over the medium term, the group is targeting in excess of 30 new site openings per annum and continues to see potential for 600+ sites in the long term.
- This story originally appeared in The Morning Advertiser’s sister publication MCA here.
