Loungers secures up to 10 new sites and plans 20 openings in 2015

12 June 2014 by
Loungers secures up to 10 new sites and plans 20 openings in 2015

Bristol-based café/bar group Loungers has secured deals for up to half of the 20 sites it plans to open in 2015, as the company stays on track to reach 56 sites by the end of 2015.

The news came as the company reported a 52% rise in EBITDA before central overheads to £6.7m in the year to 27 April, as it invested £6.9m opening 12 sites over the period.

Turnover for the group increased by 52.3% to £33.7m with company EBITDA (before exceptional and pre-opening costs) increasing from £2.9m to £4.4m.

Like-for-like sales for the period grew by 5.1%.

Loungers chief operating officer Nick Collins said: "This was another great financial performance for the business, particularly given the acceleration of our roll-out with 12 openings in the year. The like-for-like sales growth of +5.1% demonstrates the core business continues to perform strongly and whilst we are opening more sites, we are not taking our eye off the ball and are achieving healthy conversion and an increased average site EBITDA. Looking ahead to the forthcoming year we are in good shape both financially and operationally."

The company is set to open its 47th site (and seventh Cosy Club) in Bristol tomorrow, having opened Rivo Lounge in Chippenham and Bacco Lounge in Rugby in May.

Openings in Shirley Parkgate (Birmingham), Torquay, Witney, and Kettering are scheduled before the end of August.

Loungers managing director Alex Reilley said: "We're really beginning to ramp up the roll-out now and critically are beginning to grow both brands. We continue to enjoy success at sourcing great sites and unlocking potential in areas that a lot of other operators overlook. The performance of recent openings coupled with continued positive like-for-like sales is extremely encouraging and the potential scale of the business is becoming ever more apparent. This is particularly true of the Lounge model, which we believe has potential to easily grow beyond 350 sites."

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