Café-bar operator Loungers PLC (LON:LGRS) said it is confident of delivering more positive progress as it keeps expanding across England and Wales.
The company, which floated on AIM in April, said in a trading update that eight Lounges and two Cosy Clubs had opened in the half, keeping it on track to open 25 new sites in the current financial year.
READ: Loungers earnings jump in first annual results since IPO
Total revenue for the six months to 6 October was £79.8mln, up 22% year-on-year, while like-for-like sales increased 5.4%.
A new drinks contract on improved buying terms is due to be rolled out next month, with a wider range including low-alcohol and no-alcohol beers as well as a new wine list.
Broker Peel Hunt estimated that LFL pricing was up roughly 2.5% and LFL volumes circa 3% in the half, saying the new drinks menu should boost LFL sales and profits in the second half.
“Loungers is materially outperforming the sector in relation to sales, but without resorting to discounting and delivery,” analysts said.
“Its strong, self-financed growth is being supported by its PLC status, enabling wider share ownership in the company and an even stronger landlord covenant. In our view, these attractions are yet be reflected in the share price.”