Loungers PLC (AIM:LGRS), the AIM-listed hospitality group, reported a pick up in sales growth as pricing pressures diminished.
Nick Collins, CEO, said: “With a great pipeline of further openings in front of us I have never felt more optimistic about our prospects.”
The operator of all-day café/bar/restaurants across the UK under the Lounge, Cosy Club and Brightside brands said like-for-like sales grew 7.7% over the 24 weeks to 1 October, an acceleration from the growth of 5.7% reported for the 12 weeks to 9 July.
Compared to the same period in 2019, sales are up 25%.
Total revenue for the first half of the financial year rose 22.3% to £149.6 million from £122.3 million and Loungers said inflationary pressures continue to diminish in line with expectations.
The firm said its balance sheet remains strong with non-property net debt at 1 October of £14.3 million, up from £9.5 million last year, reflecting the timing of September month end working capital cash outflows.
Sixteen new sites were opened in the period, compared to 11 last year, taking the portfolio to 238 sites as at 1 October.
One Lounge site has been opened to date in the second half and, with a further 17 sites scheduled to open, the group expects to open a total of 34 new sites in the current financial year, a record number.