Café and bar chain Loungers PLC (LON:LGRS) was sitting pretty on Thursday after it issued a strong trading update for its last financial year.
For the 12 months ending 21 April 2019, the AIM-listed group recorded revenues of £153mln, up 26.4% on the prior year, while like-for-like (LFL) sales had risen 6.9%. It added the prelims, when published, would be in line with market expectations.
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Over the year, the company said it had opened 25 new sites comprising 22 Lounges and three Cosy Clubs, taking its portfolio to 146 at year-end, while so far in its current financial year it has opened two new sites in Southsea and Barnsley respectively.
Looking ahead, Loungers said it pipeline of new sites remained strong and that it was on track to open 25 new locations in the current year.
Nick Collins, chief executive, said the last year had been a “landmark” for the company, which floated on AIM in April after raising £83mln in an initial public offering (IPO).
"We remain excited about the opportunities ahead in the new financial year with good momentum in both brands, some fantastic sites in the pipeline and a real energy in the business following the IPO", he said.
The company plans to release its full results for the year on 28 August.
Performance beats house broker forecasts
In a note, analysts at Loungers’ ‘house’ broker Peel Hunt said the figures in the update had come in ahead of their own forecasts, which had expected £149.3mln of total revenue and 5.4% LFL growth.
The broker said that the company was entering its first full year as a publicly traded company with “strong LFL sales and pricing momentum”, adding that Loungers had scope to drive down costs over the medium term.
Peel Hunt current rates Loungers at a ‘buy’ with a price target of 285p.
In early trading the shares were up 3% at 227p.