Loungers FY24 underlying earnings seen ahead of market expectations

26th Apr 2024 09:38

(Sharecast News) - Bar and restaurant operator Loungers said on Friday that it had seen continued strong like-for-like sales growth in the 53 weeks ended 21 April and now expects full-year underlying earnings to come in ahead of expectations.

Loungers said it had delivered "record total revenue" of £353.5m, up 24.7% on the previous year, reflecting both continuing strong like-for-like sales growth of 7.5% and the "ongoing success" of its new site opening programme.

The AIM-listed group stated the strength of its sales performance had been accompanied by "disciplined management of costs" and a "continued easing of inflationary cost pressures" and, as a result, expects underlying earnings for FY24 to be ahead of market expectations.

Loungers added that its balance sheet "remains strong", with non-property net debt of £9.7m, up from £6.1m a year earlier as a result of the further acceleration of the firm's site roll-out programme during the year, opening a record 36 new sites in FY24.

Chief executive Nick Collins said: "I am delighted with our performance over the year.

"As we start the new financial year we are looking ahead with optimism. Our experience suggests that the UK economy is holding up well and we are well positioned to deliver continued growth."

As of 0935 BST, Loungers shares were up 1.52% at 234.50p.

Reporting by Iain Gilbert at Sharecast.com