Loungers to join stock market
The group has seen sales growth with like-for-like sales up 6.4% in the 24 weeks to 7 October 2018, 6% in the 2018 financial year and 5.5% in the 2017 financial year.
It also saw compound annual growth rate (CAGR – the rate of return of an investment over a period) of 33% between 24 April 2016 and 22 April 2018. Adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) grew at a CAGR of 39% during the same period.
Future growth
The overall cash return on capital invested has remained consistent at about 34% in the financial years of 2017 and 2018 as well as the 24 weeks to 7 October 2018.
The future continues to look bright for Loungers as it also announced it was looking to open 25 more sites by the end of the 2019 financial year – five as Cosy Clubs and 20 as Lounges.
Loungers chief executive Nick Collins said: “I am delighted to announce our intention to list on AIM. It has long been the ambition of the founders and myself that Loungers becomes a listed entity.
“The listing will allow us to broaden the employee shareholder base and provide us with an appropriate capital structure to pursue our future growth ambitions.”
Expansion strategy
He added: “Loungers is the only growing all-day operator of scale within the UK hospitality sector. Our relaxed, casual, home-from-home proposition, which combines coffee shop, pub and restaurant across our two complementary brands – Loungers and Cosy Club – resonates with today’s consumer, attracting broad demographic appeal in a diverse range of trading locations.
“We have a growing business and clear expansion strategy to continue to roll out 25 new sites per year supported by a strong pipeline of sites and led by an experienced and committed management team.
“We believe our track record speaks for itself and look forward to the opportunity, which lies ahead to deliver significant value for all shareholders.”
