Loungers sees record revenue and says inflation has eased

The business behind the Lounge, Cosy Club and Brightside brands has said its revenue hit new highs in the last financial year and it benefitted from easing inflation.

Loungers said on Friday that revenue had reached £353.5 million in the 53 weeks to April 21, up 24.7% on the year before.

The financial year was a week longer than usual, but even excluding that extra week revenue was up 22.2%, the business said.

The hospitality company said like-for-like sales had risen 7.5% across the 53-week period, while it had continued to open new sites.

“I am delighted with our performance over the year,” said chief executive Nick Collins.

“We have consistently out-performed the sector on a like-for-like basis whilst having delivered a record 36 new site openings.

“As ever, it’s our continued focus on menu innovation, value for money and exceptional hospitality that is driving the strength of our performance in both the mature estate and our new openings.

“As we start the new financial year we are looking ahead with optimism. Our experience suggests that the UK economy is holding up well and we are well positioned to deliver continued growth.”

The business said it had managed costs in a “disciplined” way and the increase in costs caused by inflation had eased.

It expects earnings before interest, tax, depreciation and amortisation (Ebitda) to beat market expectations when it reports full-year results in July.

Shares in the business rose 3.5% on Friday morning.