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Loungers Continues To Beat Market But Tough Virus Curbs May Loom

Fri, 16th Oct 2020 10:23

(Alliance News) - Loungers PLC said like-for-like sales jumped by a quarter in the 13 weeks ended early October, but did note that rising Covid-19 cases mean it could be slapped with more restrictions again.

The company, which operates 168 bars, cafes and restaurant sites in England and Wales, said a "significant outperformance of the market" since it reopened back in July has continued.

In the 13 weeks to October, like-for-like sales jumped 25% year-on-year.

"Whilst the resurgence in Covid-19 cases increases the likelihood of additional trading restrictions, we remain very encouraged by the strength of our trading post reopening," Loungers said all of its sites are open at the moment.

Earlier this week, UK Prime Minister Boris Johnson revamped the country's Covid-19 restrictions system to a three-tier code. So far, only the Liverpool city region has been hit with the most stringent tier 3 restrictions. London will on Saturday move to tier 2 which would ban household mixing in indoor settings.

Loungers Chief Executive Officer Nick Collins said: "I am delighted with our continued excellent trading which reflects the resilience of our brands and fantastic performance of our team working in very difficult circumstances. Loungers, and the sector more broadly, have gone to considerable efforts to ensure the safety of our teams and customers.

"We anticipate further interruptions to trade in the coming weeks and months, but take confidence from our continued market out-performance. We remain well-positioned to accelerate our growth and to continue to lead the market once Covid-19 is behind us."

Loungers shares were 8.9% higher at 152.50 pence each in London on Friday morning.

By Eric Cunha; ericcunha@alliancenews.com

Copyright 2020 Alliance News Limited. All Rights Reserved.

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