Loungers PLC (AIM:LGRS) reported a slight slowing in like-for-like sales growth in the past quarter but grew total sales as it opened 17 new sites during the first half of the year and made "good progress" on improving profit margins.
Ahead of its annual shareholder meeting, the operator of the Cosy Club and Brightside all-day café-bar chains said sales grew 4.7% over the half year to 6 October, down from 5.0% in the first 11 weeks to early July.
"From what we are seeing across our sites, UK consumers are feeling increasingly confident and want to go out and enjoy themselves across all parts of the day," said chief executive Nick Collins.
Total revenue came to £178.3 million, up 19.2% year on year, while non-property net debt was trimmed to £12.2 million from £14.3 million a year earlier.
New site openings took the total portfolio to 273 at the half-year stage, with the new Ritorno Lounge on Bristol's harbourside having the strongest-ever start for a new site for the group.
"This is particularly gratifying given Bristol is the city in which the Loungers story first started 22 years ago," said Collins.
Loungers plans to open another 18 sites in the second half of the year, which would see the pace almost maintained from the 36 new sites opened in the previous financial year.
Analysts at house broker Peel Hunt noted that the level of LFL growth was better than the wider sector's 2.3% and its own 3.3% full-year forecast assumption.
Shares climbed 1.5% to 270p in early trading.
** Update: Adds detail from analyst **