Loungers PLC (LON:LGRS) said trading has benefitted from “significant pent-up demand” and cuts to VAT as the group reopened its locations following a relaxation of Coronavirus (COVID-19) lockdown restrictions across the UK.
In a trading update, the café, bar and restaurant operator said in the period following the initial relaxation of restrictions on April 12, it had reopened 88 sites to trade outdoors, with the rest of the estate reopening following another relaxation on May 17.
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From May 17 to June 13, Loungers said like-for-like sales were up 26.6% on a similar period two years ago, May 20 to June 16 2019, adding that it is “encouraged” by the initial strength of its performance and remained confident it will “emerge strongly” from the pandemic.
The firm also said it ended the financial year to April 18 with 168 sites and had opened an additional five branches between April 19 and June 13.
"I am really pleased with how the business has re-opened and our trading performance has once again demonstrated the resilience of both the Lounge and Cosy Club brands. Customers have returned with confidence and our team have performed amazingly”, Loungers chief executive Nick Collins said in a statement.
"Whilst the Government's recently announced decision to leave the remaining restrictions in place for a further four weeks is disappointing for the hospitality sector as a whole, we look forward to a return to normality on 19 July", he added.
Shares in the company were 0.2% lower at 267p in early deals on Thursday.