Loungers reports record full-year revenue

12th Jul 2023 08:45

(Sharecast News) - Bar and restaurant operator Loungers reported record revenue and significant expansion in its final results on Wednesday.

The AIM-traded company's revenue reached an all-time high of £283.5m in the 52 weeks ended 16 April, representing a substantial increase of 19% compared to 2022, and 85% growth compared to before the pandemic in 2019.

Additionally, Loungers opened a record number of 29 new sites during the year, contributing to its revenue growth.

The firm reported industry-leading like-for-like sales growth of 7.4% over one year and 17.6% over three years.

Adjusted EBITDA for the period totalled £47.3m, reflecting a growth rate of 66% since the company's initial public offering (IPO) in April 2019.

However, operating profit for the year reached £14.8m, making for a decline compared to the 2022 financial period.

Loungers said it generated significant cash flow from operating activities of £51.1m, signifying 81% growth since it went public in 2019.

Looking ahead, Loungers said it was planning to capitalise on its positive momentum.

The company said it had opened six new sites in six weeks during March and April, launched innovative menus in its Lounge and Cosy Club brands, and restructured benefits for salaried staff.

"During the year we opened 29 new sites creating around 1,000 new jobs, launched an exciting new roadside dining brand and achieved industry leading like-for-like sales growth," said chief executive officer Nick Collins.

"We also converted well at the bottom-line achieving adjusted EBITDA of £47.3m.

"This is the seventh year in succession we have delivered industry-leading like-for-like sales growth and over that period the estate has grown from 44 sites to 232 today."

Collins said that based on the company's experience, the UK consumer remained positive, inflationary pressures were diminishing, and recruitment challenges had eased.

"As an example, a few weeks ago, we opened Ormo Lounge in the seaside town of Llandudno which achieved a record level of sales for any new Lounge opening in our 22-year history, reflecting the relevance of our offer and how well we trade by the coast.

"More broadly, we are excited about our ongoing roll-out programme and the opportunity to bring our culture and hospitality to around 34 new locations in the coming year, with many more to come beyond that."

At 0814 BST, shares in Loungers were up 4.28% at 192.4p.

Reporting by Josh White for Sharecast.com.