Loungers lfl sales grow by 4.7%

08-Oct-2024 - Last updated on 08-Oct-2024 at 08:22 GMT

Increased sales: Armado Lounge in Plymouth

All-day bar-café-restaurant brand Loungers has announced a 4.7% leap in like-for-like (lfl) sales in its trading update for the 24 weeks ended 6 October 2024.

The operator of the Lounge, Cosy Club and Brightside added the group has opened 17 new sites during the period while total revenue rose by 19.2% to £178.3m (same period in 2023: £149.6m) with an eye on returning to its target of returning to a pre-Covid EBITDA (earnings before interest, taxation, depreciation and amortisation) margin level of 13.5%.

The lift in lfl sales represents a continuation of the 5.0% lfl sales growth previously reported for the 11 weeks to 7 July 2024, which Loungers said was “another clear demonstration of Loungers’ ability to consistently outperform the broader UK hospitality market”.

The Group’s balance sheet remains strong, with non-property net debt at 6 October 2024 of £12.2m (1 October 2023: £14.3m).

273 sites

Loungers has opened 17 new sites during the period (H1 FY24: 16 new sites), taking the total portfolio to 273 sites as of 6 October 2024.

This included the Ritorno Lounge on Bristol’s harbourside, which opened in July and has had the strongest start for a new site in the group’s 22-year history.

A further 18 sites are scheduled to open in H2, continuing the increased roll-out programme following the 36 new sites opened in the previous financial year.

Loungers Nick Collins CEO said: “I am delighted with our performance and the consistency of our sales growth, both in terms of like-for-like growth in the mature estate as well as the strength of our new openings.

Best-performing new site ever

“During the period, we have opened in 17 towns and high streets across the UK, which adds up to 37 in the past 12 months, and enormous credit is due to the hard work and professionalism of our amazing teams.

“The opening of our Ritorno Lounge on Bristol’s harbourside has been our best performing new site ever. This is particularly gratifying given Bristol is the city in which the Loungers story first started 22 years ago.

“From what we are seeing across our sites, UK consumers are feeling increasingly confident and want to go out and enjoy themselves across all parts of the day.

“That confidence, combined with the variety, breadth, flexibility and relevance of our all-day offering, is reflected in our continued sales success.”