Hospitality company Loungers is set to expand its reach by opening 18 new venues within the next six months. The chief executive of the group, Nick Collins, expressed his delight at the company’s recent performance and sales growth.
Loungers, known for its Cafe bar business, currently operates 273 venues under its Lounge, Cosy Club, and Brightside brands. The London-listed business observed a slight increase in its shares as it announced plans for further expansion.
During the 24 weeks leading up to October 6, Loungers reported a 19.2% increase in total revenues, amounting to £178.3 million. This growth was primarily attributed to opening 17 new venues during the period, with a year-on-year like-for-like sales increase of 4.7%.
The company is continuing its expansion strategy with the aim of opening 18 more sites in the second half of its financial year, ending in April. Additionally, Loungers successfully reduced its debts, with non-property net debt decreasing from £14.3 million to £12.2 million compared to the previous year.
Nick Collins shared, “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.”
Analyst Anna Barnfather from Panmure Liberum commended Loungers, stating that “it is hard to find a company in better health or with better prospects in this space” following the positive update.
Loungers’ growth and success in the hospitality sector highlight a promising outlook for the company as it looks to further establish its presence and cater to the increasing confidence and demand from consumers in the UK.