Loungers Group sees trade surge as restaurants reopen

15
0

Cafe-bar group Loungers has experienced a surge in sales since reopening its restaurants, with the Eat Out to Help Out scheme helping drive growth over August.

The Bristol-founded business, which now operates 167 Loungers and Cosy Clubs across England and Wales, saw comparable sales jump 29.9 per cent from July 4 to September 13.

The company’s post-lockdown trading results announced this morning (September 16) revealed revenue rose to £166.5million for the financial year ending April 2020 – up from £152.9million the year before.

However, loss before tax widened from £6.7million to £14.7million over the same period.

Loungers said during the pandemic it secured an extra £15million in credit from its banks and £8.1million (net) of new equity to provide liquidity. It also cut directors’ pay by 50 per cent.

Nick Collins, chief executive of Loungers, said: “The ‘Eat Out to Help Out’ scheme and the government’s support for our sector continues to be much appreciated.

“More importantly, however, having fully re-opened our underlying sales are in growth even without this support.”

He added: “Clearly we don’t know what is around the corner. We anticipate further interruption to trade on either a local or regional basis in the short-term and have the balance sheet and liquidity to withstand significant further Covid impacts.

 

BusinessLive is your home for business news from around the country – and you can stay in touch with all the latest news through our email alerts.

You can sign up to receive daily morning news bulletins from every region we cover and to weekly email bulletins covering key economic sectors from manufacturing to technology and enterprise. And we’ll send out breaking news alerts for any stories we think you can’t miss.

Visit our email preference centre to sign up to all the latest news from BusinessLive.

“Covid has, however, strengthened our belief in the potential scale of both brands in the longer-term and the behavioural shifts being witnessed further underline this.”

Loungers said it would “cautiously re-start” the roll-out of new sites in the second half of the year.

Mr Collins added: “We are excited about the property opportunities available to us and getting back to opening 25 sites a year in due course.”


Source link

LEAVE A REPLY

Please enter your comment!
Please enter your name here