13th Jul 2022 12:14
(Alliance News) - Bar and cafe owner Loungers PLC on Wednesday reported an annual revenue surge, shaking off the effects of the Omicron variant, the 'pingdemic' and recruitment issues.
Revenue in the financial year that ended April 17 jumped to GBP237.3 million from GBP78.3 million in the lockdown-hit prior year.
Further, Loungers swung to a pretax profit of GB21.6 million from a GBP14.7 million loss the year before.
It added that during financial year 2022, the company opened a "record" 27 new sites across its Lounge and Cosy Club portfolio.
Loungers said that despite its "very strong" performance, it faced unprecedented challenges from the Omicron variant, the 'pingdemic' and recruitment issues. At the start of the financial year only a third of its bars and cafes were open - and even at those sites the company was only able to trade outside.
Looking ahead, Loungers said that it expects the next few months to be "challenging" with a decline in consumer spending and the prospect of a recession. However, it added that it remains confident, having traded "successfully" through the 2008 financial crisis.
Further, the company said that its pipeline of new openings is well-developed and it now expects to have the capacity to roll-out over 30 sites a year.
Chief Executive Nick Collins said: "Whilst the short-term economic outlook is challenging, we are in an excellent position to weather the storm and to take advantage of growth opportunities coming out of it. We have a strong balance sheet, a very capable and highly motivated team and an affordable, value for money all-day offer with enormous scope for further expansion across the UK."
Shares in Loungers were up 2.5% to 187.00 pence each in London on Wednesday around midday.
By Sophie Rose; [email protected]
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