Café-bar operator Loungers PLC (LON:LGRS) reported a 23.7% jump in adjusted earnings in its first set full year results since floating on London’s junior market in April.
Adjusted earnings (EBITDA) rose to £20.6mln in the year to 21 April from £16.6mln last year as revenue gained 26.4% to £153mln with like-for-like sales up 6.9%.
Loungers started trading on AIM on 29 April, raising net proceeds of £56.4mln to help pay down debt and expand its chain of café bars.
The group opened 25 new stores in the 2019 fiscal year and has opened a further eight sites since the year end, putting it on track to meet its target of 25 in 2020.
"Our new financial year has started well and our roll-out strategy for both brands is on schedule,” said chief executive Nick Collins.
“I remain confident about the outlook and future growth prospects for the group."
Its shares are currently trading just above the initial public offering price of 200p at 207p.
Peel Hunt maintained a 'buy' rating and target price of 285p on the shares, saying 2019 EBITDA met its expectations.
"Like-for-like sales have remained strong in early 2020, a year for which we are forecasting 23% EBITDA growth, despite minimal change in forecast net debt," the broker said.
"We are holding our forecasts, but believe our 2020 assumptions of 3.6% LFL sales and stable margins offer attractive upgrade risk."