Loungers reports strong sales but recruitment ‘remains tough'
Loungers, operator of 153 Lounge café-bars and 31 Cosy Cub restaurant-bars across England and Wales, has reported revenue growth of 91.4% to £102.4m in its financial results for the 24 weeks ended 3 October 2021.
The period included four weeks to 16 May, when sites were restricted to external trading only, and a further nine weeks before the removal of remaining restrictions, with only 11 weeks absent from any Covid restrictions.
During this time, the group saw like-for-like sales growth of 26.6% compared to 2019 and adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) of £27.1m, up 105.1%, driven by strong sales and margin growth. The group also saw a pre-tax profit of £12.8m.
Loungers anticipated opening 25 new sites during the financial year ending 17 April 2022, having opened 12 during the 24-week period – 11 Lounges and one Cosy Club.
Since the end of the period, the business has seen like-for-like sales growth of 23.4% across the 28 weeks to 28 November, and although Loungers said it was "mindful" of the Omicron variant, it was "optimistic" about the Christmas period and beyond.
However, it also said that recruitment and retention within the sector "remains tough" and added: "as a large employer it is critical that we address this, in terms of both understanding where we can be better, alongside promoting what we are very good at".
Nick Collins, chief executive of Loungers, said: "Our value for money, all-day offer appeals to a very broad demographic, and this underpins our market-leading performance in towns and suburbs across England and Wales. We will open 25 sites this year as we continue to benefit from the changing dynamics of the high street and our pipeline of new sites has never looked so strong. Our sustained growth alongside our operational discipline are enabling us to manage and mitigate most inflationary pressure.
"As we move into the Christmas trading period any potential impact of Omicron remains to be seen, but as we look ahead to 2022, I am very optimistic with regards to our prospects and the continuing roll-out of both Lounge and Cosy Club."
