Loungers narrows losses and boosts revenue

Loungers narrows losses and boosts revenue

Restaurant, bar and café chain Loungers announces its financial results.

The company, which has more than 150 venues across England and Wales, has narrowed its losses to £4.9m for the year ending in April 2019, which is an improvement to last year’s £6.6m loss.

Loungers’ revenue jumped 26.4% to £153m, which is up from £121m in 2018. Like-for-like sales increased by 6.9% year-on-year.

Its adjusted earning before interest, tax, depreciation and amortisation (EBITDA) rose from £16.6m to £20.6m (23.7% increase).

The company joined the Aim stock market back in April, which meant an increase in costs: it reported £14.8m in net debt.

Over the past year, Loungers opened 25 new sites, which is three more than over the previous 12 months.

“These results represent a strong performance for the financial year ending 21 April 2019 and are in line with both our, and the market’s, expectations,” says Nick Collins, chief executive officer of Loungers. “Our revenue and profit growth not only reflect the continued success of the roll-out, but also our unwavering focus on our customers, the evolution of our proposition and how we support and invest in our teams.

“Our admission to AIM post the FY19 year-end has meant almost 600 employees have had the opportunity to become shareholders in Loungers plc and it is fantastic that their hard work and commitment can be rewarded in this way.

“Our new financial year has started well and our roll-out strategy for both brands is on schedule. I remain confidence about the outlook and future growth prospects for the Group.”