Trading Update for the 24 Weeks Ended 2nd October 2022

Café-bar operator Loungers, owner of the Lounge and Cosy Club brands, has announced a trading update for the 24 weeks ending 2nd October 2022.

The Group continues to deliver consistent and significant outperformance of the market. Over the 24 weeks to 2nd October 2022, the Group delivered like-for-like sales growth of 17%, using the period 22nd April to 6th October 2019 as the comparator. The continued strength of performance against a well-documented challenging macroeconomic backdrop is testament to the relevance and resilience of the Group’s brands.

Net debt at 2nd October 2022 was £9.5 million (£11.9 million on 3rd October 2021), reflecting the timing of September month-end working capital cash outflows.

Since the start of the financial year, the Group has opened 11 new sites, comprising eight Lounges and three Cosy Clubs, taking the portfolio to 206 sites as of today. Loungers expect to open a further 19 sites in the current financial year.

Loungers will next update the market on 30th November 2022, when half-year results are announced.

Nick Collins, Loungers CEO, commented: “Loungers continues to thrive and I am delighted with our consistent outperformance of the market, thanks to the fantastic efforts of our teams and the hospitality they provide. We are particularly pleased with the strong performance of our new openings and we are on track to open 30 sites this year.

“As our strong sales performance demonstrates, neither uncertainty in respect of the wider UK economy nor consumer attitudes towards discretionary spending have to date impacted our sales. We are continuing to benefit from more people staying local, working from home, and supporting their community and high street, which are trends that we believe are here to stay.

“We are operating in a particularly inflationary environment and we are working hard to mitigate inbound cost pressures and to maintain the value-for-money principles that are so important to our customers. We continue to focus on getting the right balance and take confidence from the positioning of both Lounge and Cosy Club and their market-leading track records.”