Loungers, the Bristol-based cafe/bar group, has 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 in the period.
Turnover for the Piper Private Equity backed group increased 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%.
Accelerated roll-out, core performance strong
Speaking of the group’s performance, Loungers COO, 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.”
56 sites by end 2014
The news comes as the company begins to further accelerate its roll-out having opened Rivo Lounge in Chippenham and Bacco Lounge in Rugby in May. The group opened their 47th site (& 7th Cosy Club) in Bristol on Friday 13 June. Openings in Shirley Parkgate (Birmingham), Torquay, Witney, and Kettering are scheduled before the end of August and the group remains firmly on track to reach 56 sites by the end of 2014.
It is also understood that deals are already in place for up to half of the 20 sites Loungers’ anticipates opening in 2015.
Ramping up the roll-out
Loungers MD 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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