Loungers plc restaurant chain enjoys record sales
THE Loungers Plc cafe-restaurant-bar chain, which is about to open its third outlet in Plymouth, has enjoyed record sales as patrons flock back following the end of coronavirus restrictions.
The Bristol-headquartered company, which is about to move into the former glassworks building on the Barbican, has seen revenue for its financial year hit a record £237.3 million.
The company operates 164 Lounge café-bars, including the Seco Lounge at Royal William Yard, and 31 Cosy Club restaurant-bars, including one at the Barcode leisure complex in the city centre. It is now about to open a third Plymouth unit in the Grade II listed Barbican waterfront building which been empty since Edinburgh Woollen Mill, which leased the entire 7,500 sq ft space, unexpectedly closed its store in May 2021.
Plans have been submitted to divide the former retail space into three equal parts, with national food chain The Cornish Bakery already planning to move into one of the units.
Loungers opened the Seco Lounge eatery in 2009, the first restaurant in Royal William Yard, and saw it become a major hit. The firm has since become a stand-out success at a time when the casual dining sector has come under threat across the UK.
Loungers, in an update for investors, said it had experienced a “significant outperformance” in the year to April 17, 2022. It said that whilst trading during December was subdued as a result of the Omicron variant, it recovered strongly since Christmas.
The group has continued to deliver very strong like-for-like sales which were up 22.1% (net) in the 48 weeks to
April 17. Loungers bosses said that in light of the strong performance so far in 2022 they expect profitability for the financial year to be slightly ahead of market expectations.
Over the course of the financial year Loungers opened a record 27 new sites, comprising 26 Lounges and one Cosy Club, taking the portfolio to 195 sites as of today. Net debt has fallen dramatically too, and was at £1.2m on April 17, excluding a further £1.4m of outstanding rent liabilities, to give underlying net debt of £2.6m. This represents a reduction in underlying net
‘It has been a phenomenal effort from our team to open 27 fantastic new sites in a difficult year’ NICK COLLINS
debt of £44.9m compared to April 18, 2021.
Nick Collins, chief executive, said: “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 wellpositioned 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. We are optimistic as we look ahead to FY23.”