12th Jul 2023 11:38
(Alliance News) - Bar and cafe owner Loungers PLC on Wednesday reported an annual revenue surge, but profit fell as costs increased significantly.
Revenue in the financial year that ended April 16 jumped 19% to GBP283.5 million from GBP237.3 million, which the company said was a record turnover.
Loungers pretax profit however dropped to GBP7.3 million from GBP21.6 million the prior year. Cost of sales widened 27% to GBP170.4 million from GBP134.4 million, while administrative costs increased 28% to GBP98.4 million from GBP77.0 million.
Further, the company noted an impairment charge of GBP1.6 million for financial 2023.
The company said it opened 29 new sites, a record number of openings.
"As Loungers enters FY24 we are in a great place, and I firmly believe that we are armed with the best thought-through and most realistically deliverable strategic plan that the business has ever had," Chair Alex Reilley said.
The company said its new site openings were performing "exceptionally well", that the company was achieving record levels of sales, and it had a strong pipeline of sales.
Chief Executive Officer Nick Collins said: "Based on our experience the UK consumer remains positive, inflationary pressures are diminishing and recruitment challenges have eased. As an example, a few weeks ago, we opened Ormo Lounge in the seaside town of Llandudno which achieved a record level of sales for any new Lounge opening in our 22-year history, reflecting the relevance of our offer and how well we trade by the coast."
Shares in Loungers were up 0.6% at 185.60 pence in London on Wednesday morning.
By Will Neill, Alliance News reporter
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