(Sharecast News) - Cafe and bar operator Loungers revealed on Tuesday that full-year profitability was now expected to be ahead of expectations after it saw record sales in the 52 weeks ended 17 April.
Loungers stated that although trading during December had been "subdued" as a result of the Covid-19 Omicron variant, it recovered strongly post-Christmas, allowing it to deliver record total revenues for the year of £237.3m.
The AIM-listed group, which opened a record 27 new sites during the year, also stated it had continued to deliver "a very strong" like-for-like sales performance of 22.1% over the 48 weeks to 17 April, with like-for-like sales in the second half rebounding "convincingly" post-Christmas.
As a result of Loungers' "strong performance" following the Christmas trading period, it now expects profitability for the financial year to be "slightly ahead" of market expectations.
Net debt on 17 April 2022 was £1.2m, excluding a further £1.4m of outstanding rent liabilities, leaving it with an underlying net debt position of £2.6m - a marked reduction when compared to the £44.9m reported on 18 April 2021.
Chief executive Nick Collins said: "We continued to deliver underlying, volume-driven like for like sales growth despite the uncertain consumer backdrop and we are well-positioned to increase share in the coming months through our new site opening programme and value for money offer.
"It has been a phenomenal effort from our team to open 27 fantastic new sites in what has at times been a difficult year. The new site pipeline is in excellent shape and we are optimistic as we look ahead to FY23."
As of 1030 BST, Loungers shares were up 4.80% at 257.80p.
Loungers Plc (LGRS)