Loungers PLC (AIM:LGRS) said it has continued to “significantly outperform the market” with strong sales growth as it provided its most recent trading update.
The operator of all-day café/bar/restaurants across the UK, under the Lounge and Cosy Club brands, saw like-for-like revenue growth of 17.0% in the 24 weeks ended 2 October 2022, when compared with the corresponding period in pre-pandemic 2019.
"The continued strength of performance against a well-documented challenging macroeconomic backdrop is a testament to the relevance and resilience of our brands," Loungers said in a statement Friday.
It has opened 11 new sites since the start of the financial year, taking its portfolio to 206, and intends to launch 19 more this year.
Nick Collins, chief executive, commented: “We are particularly pleased with the strong performance of our new openings and we are on track to open 30 sites this year.
“As our strong sales performance demonstrates, neither uncertainty in respect of the wider UK economy nor consumer attitudes towards discretionary spending have to date impacted our sales.”
Loungers' balance sheet remains “strong” with non-property net debt at the end of the period at £9.5mln, down by £2.4mln from the year before, reflecting the high amount of September working capital cash outflows, the company said.
It also insisted it is benefitting from more people staying local, working from home and supporting their high street, all things it believes will stay.
Collins added that the company is operating in a particularly inflationary environment and ensures it is working hard to mitigate inbound cost pressures.