Loungers' sales rise 23.7% since fully reopening

Loungers, the group which operates 175 venues under the Lounge and Cosy Club brands, has announced its audited results for the 52 weeks ended 18 April 2021.

Key highlights include net like-for-like sales growth of 23.7% since fully reopening on 17 May (covering the nine weeks to 18 July 2021, versus the same period in 2019.

The group attributes its continued market out-performance to post-Covid trends, with benefits to venues including flexible working driving traffic to local high streets rather than city centres; community presence; and staycationing.

Non-property net debt at 18 April 2021 of £34.2m was reduced to £18.2m at 11 July 2021 due to negative working capital rewinds.

Seven new sites have opened to date in the current financial year, and the group has returned to opening sites at the pre-Covid-19 level of 25 sites per year.

Consistent, sector-leading growth
“I am delighted with the strength of our performance since re-opening," says Nick Collins, chief executive officer of Loungers. "Each time the business has reopened over the past 18 months, we have achieved consistent, sector-leading sales growth.

“We welcomed the removal of all Covid-related restrictions on Monday and while there is naturally short-term uncertainty, we are looking ahead with real confidence.

"We want to play our part in driving economic growth as we come out of Covid, improving high streets across the UK and providing amazing hospitality in communities. The strategy that we outlined when we floated the business in 2019, and our place on the high street, have never looked more relevant.

"The last few weeks have been very challenging operationally, and as we head into the summer holidays, the operating environment will continue to be difficult as we face interruption due to positive Covid cases and self-isolation and a very tight labour market in a number of locations.

"Once again our team have approached the challenge with enthusiasm and commitment and I am enormously grateful and proud of the contributions made at every level in the business. The resilience shown by our team over the last 18 months has been remarkable.

"We are committed to using our growth to provide fantastic careers and progression opportunities in the hospitality sector, and with around 1,250 employee shareholders, rewarding loyalty with ownership in the business”

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