- The Bristol-based group owns the Lounge, Cosy Club and Brightside brands
- Total turnover increased by 19.2% after the company launched 17 more venues
Loungers said it continued to outperform the broader hospitality industry during the summer and early autumn on the back of solid revenue growth.
The Bristol-based group, which owns the Lounge, Cosy Club and Brightside brands, revealed its like-for-like sales rose by 4.7 per cent in the 24 weeks to 6 October.
Total turnover increased by 19.2 per cent after the Aim-listed company launched 17 more venues throughout the period, taking its total estate to 273 outlets.
Relaxing place: Hospitality firm Loungers owns the Lounge, Cosy Club and Brightside brands
One of them, the Ritorno Lounge on Bristol’s harbourside, had the strongest start for a new site since the firm was founded in 2002 by friends Alex Reilley, David Reid, and Jake Bishop.
Loungers intends to open a further 18 establishments over the latter six months of the current financial year.
The business said the result was ‘another clear demonstration of Loungers’ ability to consistently outperform the broader UK hospitality market.’
Loungers has enjoyed bumper growth over the past two years despite the well-documented difficulties affecting the hospitality sector.
In the 12 months ending April 2024, its revenue grew by around a quarter to a record £353.5million, while pre-tax profits soared by more than half to £11.4million.
Its performance was not just bolstered by new venues opening, including its 250th overall site, the Pionero Lounge in Rochdale, but also price hikes and modest volume growth.
Nick Collins, chief executive of Loungers, said: ‘From what we are seeing across our sites, UK consumers are feeling increasingly confident and want to go out and enjoy themselves across all parts of the day.
‘That confidence, combined with the variety, breadth, flexibility and relevance of our all-day offering, is reflected in our continued sales success.’
Loungers’ latest trading update comes a day after analysis by accountancy firm Price Bailey warned that one in 10 British pubs were at imminent risk of closure.
It also estimated that 20 per cent of the country’s pubs were technically insolvent because they had negative net assets on their balance sheets.
Since 2020, pubs, restaurants and bars closing have been forced to contend with temporary Covid-related restrictions and elevated inflationary pressures, including higher staff, energy, and food and drink costs.
The British Beer and Pub Association, a trade body, has called on the government to cut beer duty, reform business rates, and keep the 75 per cent business rates relief in its upcoming budget.
It warned that ‘any additional price increases, on top of the inflationary pressures of the last few years, would tip many beer and pub businesses over the edge.’
Fifty pubs a month closed for good in England and Wales during the first six months of 2024, according to real estate intelligence firm Altus, meaning there were 39,096 pubs across the two countries at the end of June.
Loungers shares were 1.1 per cent up at 269p on late Tuesday afternoon, taking their gains over the past year to 41 per cent.
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