Loungers Share Price Rallies As Outperformance is Maintained

The share price of Loungers plc (LON: LGRS) has rallied in the early part of the London session on Friday after the company released a trading update for the 24 weeks ended October 3.

The AIM-quoted firm, which operates 150 Lounge cafe-bars and 31 Cosy Club restaurant-bars, said its “significant outperformance” of the market in the period after the start of indoor trading on May 17, has been maintained.

Over the 20 weeks to October 3, the company delivered like for like sales growth of 26.6%, compared to May 20 to October 6, 2019.

“Whilst trading and the reported like for like sales uplift benefit from the VAT reduction, the continued strength of performance is testimony to the relevance and resilience of our brands,” stated Loungers.

The company's net debt on October 3 was £11.9m, excluding a further £5.6m of outstanding rent and deferred liabilities payable to HMRC.

Since the start of the financial year, Loungers has opened 13 new sites, including 12 Lounges and one Cosy Club, taking its portfolio to 181. It expects to open a further 10 locations in the current financial year.

Nick Collins, CEO of Loungers, commented: “Our like for like sales have been consistently strong since re-opening, across all site age cohorts and both brands. In addition, I am particularly pleased with the strength of performance in the new sites we have opened in this financial year. 

“Loungers continues to thrive as we put Covid behind us and manage the current challenges facing our sector. This success reinforces our roll-out strategy and we look ahead with confidence, with our pipeline of future sites as strong as it ever has been.”

Loungers' share price is up 3.59% at 303p at the time of writing.

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