Cosy Club owner Loungers PLC (AIM:LGRS) said earnings for the last year will come in ahead of expectations on the back of strong sales and easing inflation.
Revenue climbed 24.7% to £353.5 million over the 53 weeks to April 21, the cafe, bar and restaurant owner reported on Friday.
On a like-for-like basis, sales were up 7.5%.
“It's our continued focus on menu innovation, value for money and exceptional hospitality that is driving the strength of our performance in both the mature estate and our new openings,” chief executive Nick Collins commented.
Cost discipline and easing inflation have helped too, the company said, adding “We expect earnings before interest, taxes, depreciation, and amortisation for 2024 to be ahead of market expectations”.
Analysts expect this to come in at £53.89 million, according to S&P-cited MarketScreener data, up 14% on a year earlier.
Net debt climbed from £6.1 million to £9.7 million, which Loungers attributed to new site openings.
This included 33 new Lounges-branded sites, one Cosy Club and two Brightsides, leaving the company operating 257 venues as of the year-end.
“As we start the new financial year, we are looking ahead with optimism,” Collins added.
“Our experience suggests that the UK economy is holding up well and we are well positioned to deliver continued growth.”
Full-year results are expected on July 9.