Cosy Club owner Loungers trading ahead of expectations

Cosy Club owner Loungers is expecting to beat profit expectations after seeing a rise in sales and as inflationary pressures begin to ease, it has said.

The operator of the Lounge and Brightside brands reported record total revenue for the financial year of £353.5m - up 24.7% on the previous year - in a trading update for the 53 weeks ended April 21.

Total sales were up 22.2%, the Bristol-founded company announced, while like-for-like sales growth was up +7.5% across the 53 weeks. The business also said new site openings had helped to boost its bottom line.

Loungers told investors on Friday (April 26) it expects profits to be ahead of market expectations for the year.

Nick Collins, Loungers chief executive, said: “I am delighted with our performance over the year. We have consistently out-performed the sector on a like for like basis whilst having delivered a record 36 new site openings. As ever, it’s our continued focus on menu innovation, value for money and exceptional hospitality that is driving the strength of our performance in both the mature estate and our new openings.

“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.”

The news comes just days after the group announced ambitions to open around 600 sites around the country.

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The group has opened 36 new sites since the start of the 2024 financial year, comprising 33 Lounges, one Cosy Club and two Brightsides. At year end, the portfolio totalled 257 sites. The business also recently opened a further Lounge in Ely, Cambridgeshire.

Loungers said it expected to update the market next on July 9 when it will announce its preliminary results for the 53 weeks ended April 21, 2024.