Loungers PLC (AIM:LGRS), the bar, restaurant, and café operator, delivered record-breaking revenues of £283.5mln in the year to April 16.
This jump represented a 19.5% rise compared to 2022’s revenues of £237.3mln.
On a like-for-like basis sales at the Lounge and Cosy Club owner rose 7.4% over the previous year and were 17.6% ahead of pre-pandemic levels three years ago.
Underlying profit [EBITDA] was expected to “be broadly in line with market expectations”, the group added.
Broker Liberum expects underlying earnings to reach £43.8mln, a drop of close to 15% from the £51.3mln Loungers reported in 2022.
Earnings at these levels would indicate operating margins dropped six percentage points, falling to just under 15%.
The hospitality group opened 29 new sites in the last financial year taking its total active venues to 222.
Nick Collins, chief executive, said: “We have progressed well with our accelerated site roll-out programme, with the new cohort trading well above average.
“The property market continues to work in our favour and our pipeline of around 35 sites for the 2024 financial year is incredibly exciting with nine openings planned for the first quarter.”
Collins added that the firm expects the strong performance to continue going forward as inflationary pressures subside.
Shares in Loungers were down 2% on Tuesday after opening at 203p.
Liberum currently targets a 400p share price and rates the stock a ‘buy’.