Last checked at 26 Apr 2022 07:00
Loungers plc
("Loungers" or the "Group")
Loungers announces record sales for the 52 weeks ended 17 April 2022
Loungers, the operator of 164 Lounge cafe-bars and 31 Cosy Club restaurant-bars, today announces a trading update for the 52 weeks ending 17 April 2022 ("the financial year").
Our significant outperformance of the market has been maintained over the financial year. Whilst trading during December was subdued as a result of the Omicron variant, it recovered strongly post-Christmas, allowing us to deliver record total revenue for the financial year of £237.3m.
The Group has continued to deliver a very strong like for like sales ("LFL") performance of +22.1% (net) over the 48 weeks to 17 April 2022. LFL sales in the second half rebounded convincingly post-Christmas, evidencing once again the relevance, resilience and popularity of our brands.
Two year LFL | Three year LFL | |
40 weeks to | 48 weeks to | |
20 February 2022 | 17 April 2022 | |
Net - including VAT benefit | +17.7% | +22.1% |
Gross - excluding VAT benefit | +9.3% | +14.2% |
In light of the Group's strong performance post-Christmas we expect profitability for the financial year to be slightly ahead of market expectations.
Net debt (pre IFRS16) at 17 April 2022 was £1.2m, excluding a further £1.4m of outstanding rent liabilities, to give underlying net debt of £2.6m. This represents a reduction in underlying net debt of £44.9m compared to 18 April 2021.
Over the course of the financial year the Group opened a record 27 new sites, comprising 26 Lounges and one Cosy Club, taking the portfolio to 195 sites as of today. We continue to be very pleased with the strength of these openings.
Loungers expects to next update the market on 13 July 2022 when we announce our preliminary results for the year ended 17 April 2022.
Nick Collins, CEO, commented:
"I am delighted with trading in both the Lounge and Cosy Club brands over the financial year. 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."
26 April 2022
For further information please contact:
Loungers plc Nick Collins, Chief Executive Officer Gregor Grant, Chief Financial Officer
| Via Instinctif Partners |
Houlihan Lokey UK Limited (Financial Adviser and NOMAD) Sam Fuller / Tim Richardson
| Tel: +44 (0) 20 7484 4040 |
Liberum Capital Limited (Joint Broker) Andrew Godber / John Fishley
| Tel: +44 (0) 20 3100 2000 |
Peel Hunt LLP (Joint Broker) Dan Webster / George Sellar | Tel: +44 (0)20 7418 8900 |
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Instinctif Partners (Financial Public Relations) Justine Warren / Matthew Smallwood
| Tel: +44 (0) 207 457 2010/2005 |