The boss of pub and cafe chain Loungers said “our experience suggests that the UK economy is holding up well”, as the business reported record revenue.
Sales rose by 24.7% to £353.5 million, which Loungers said was “accompanied by disciplined management of costs and a continued easing of inflationary cost pressures.” The growth was driven partly by new openings, but like-for-like sales were still up 7%.
As a result, the business is now set to beat market earnings expectations.
Loungers operates the Lounge, Cosy Club and Brightside brands, and has 258 sites across the UK.
CEO Nick Collins 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 shares rose by 5.2% to 243p, valuing Loungers at a quarter of a billion pounds. Analysts at Peel Hunt said it was still undervalued.
It comes as other major UK pub chains have faced questions about their futures. Stonegate, which owns Slug & Lettuce and Be At One, recently warned that it was having difficulty refinancing its loans. Revolution Bars recently revealed plans to close some of its locations as it remains on the brink.
