Loungers PLC Trading Update (2821J)

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RNS Number : 2821J

Loungers PLC

26 April 2022

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 GBP237.3m.

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 GBP1.2m, excluding a further GBP1.4m of outstanding rent liabilities, to give underlying net debt of GBP2.6m. This represents a reduction in underlying net debt of GBP44.9m 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                            Via Instinctif Partners 
  Nick Collins, Chief Executive Officer 
  Gregor Grant, Chief Financial Officer 
Houlihan Lokey UK Limited (Financial     Tel: +44 (0) 20 7484 
 Adviser and NOMAD)                       4040 
 Sam Fuller / Tim Richardson 
Liberum Capital Limited (Joint Broker)   Tel: +44 (0) 20 3100 
 Andrew Godber / John Fishley             2000 
Peel Hunt LLP (Joint Broker)             Tel: +44 (0)20 7418 
 Dan Webster / George Sellar              8900 
 
Instinctif Partners (Financial Public    Tel: +44 (0) 207 457 
 Relations)                               2010/2005 
 Justine Warren / Matthew Smallwood

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