Loungers (LGRS) Shares Rose 2.67% on H1 FY’24 Trading Update

The Loungers PLC (LON: LGRS) share price rose 2.67% after releasing a trading update for the 24 weeks ended 1 October 2023. The company reported that its like-for-like sales had accelerated growth and opened 16 new sites during the 24 weeks.

Over the 24 weeks ending on October 1, 2023, the Group achieved an impressive year-on-year like-for-like (LFL) sales growth of 7.7%. Compared to the 24 weeks concluded on October 6, 2019, LFL sales have surged by a remarkable 25.0%.

The LFL growth marks a significant acceleration compared to the previously reported LFL sales growth of 5.7% for the 12 weeks leading up to July 9, 2023, underscoring the company’s sustained strong sales performance since the onset of the pandemic.

The Group was delighted to announce total revenues of £149.6 million for the first half of its fiscal year 2024, reflecting a robust 22.3% increase from the previous year's figure of £122.3 million during fiscal year 2023. 

The company also noted that inflationary pressures have continued to recede in accordance with its projections. 

As of October 1, 2023, the company’s balance sheet was robust, with non-property net debt amounting to £14.3 million compared to £9.5 million on October 2, 2022. The variance was primarily attributed to the timing of working capital cash outflows at the end of September.

During the first half of fiscal year 2024, the Group successfully inaugurated 16 new sites, a notable increase from the 11 new sites opened in the same period of the previous fiscal year (H1 FY23).

Nick Collins, Loungers CEO, commented: “I am delighted with our strong trading performance across both the mature estate and our new openings. Our consistent sales growth reflects the continued evolution of our offer and the resilience of the UK consumer and high street.  We have now opened 34 sites in the past 12 months, creating around 1,000 jobs in the process and 72 sites since the last Covid lockdown.  With a great pipeline of further openings in front of us, I have never felt more optimistic about our prospects.  None of this would be possible without our amazing team, and as ever, I would like to say a massive thank you to them for their hard work.”

Loungers (LGRS) share price. 

The Loungers (LGRS) share price rose 2.67% to trade at 192.51p from Thursday’s closing price of 187.50p.