Loungers sees profits fall but eyes roadside roll out
Loungers has posted its interim report for the 24 weeks ending October 2, revealing a fall in profits.
However the restaurant, bar and café operator remains determined to continue its expansion, having acquired four new roadside sites for its Brightside chain, scheduled to debut in 2023.
The operator, which currently manages the Lounge and Cosy Club venues, posted a fall in profit of just under £10m compared to the same period in 2021.
However Loungers saw a growth in revenue to over £122m, 53.2% higher than the first half of FY2020, the most recent period unaffected by COVID. This reflected a three-year like for like sales growth of 17% and the addition of 50 new sites in that period.
The leisure operator also said it is well placed to deal with a recessionary environment, citing good value for money, a broad customer demographic, and a strong balance sheet.
The business is still operating at a profit of £2.8m, which while less than the £12.8m seen last year, is an improvement on the operating loss of nearly £2.5m seen in the same period in 2019.
Nick Collins, chief executive officer of Loungers, said: “We aren’t immune to the inflationary pressures impacting our sector, but we have worked hard to strike the right balance between growing market share and managing margin pressures. These numbers would suggest we have got the balance about right.
“The short-term outlook is uncertain, but we take confidence from the resilience of current trading in both brands.”