Loungers has reported like-for-like sales growth of 5.3% in its annual results, compared to 2.2% in 2016.
Another 20 sites – comprising 16 Lounges and four Cosy Clubs – were opened, while two were closed. Revenue grew from £68.5m to £91.8m, representing a 34% uplift in net sales. Underlying EBITDA increased from £8.4m to £12.3m, which was a 46% increase on the prior year, despite operating in an inflationary environment.
During the year, £12.9m of capital expenditure was invested in the development of new sites, while the rent/revenue ratio improved from 5.8% to 6.0% in the prior year. Maintaining this level remains a core objective of the business.
A fourth region has been added to the Lounge business as the company expands geographically. Most operational positions have continued to be filled with internal promotions. Jake Bishop, who was managing director for the Cosy Club brand, became commercial director for the group, while Amber Wood took over as managing director for Cosy Club. Justin Carter, who was previously chief operating officer, moved onto become managing director for the Lounge brand.