Café-restaurant chain Loungers reported a 19% boost in revenue from £237m in 2022 to £283.5m in its latest set of results.
The company, which was founded in Bristol, saw profits drop by £14m over the past 12 months despite its "record" revenue. The restaurant chain, which operates Lounge and Cosy Club, saw profits fall from £21.6m to £7.3m over the last three months.
However, bosses at the group said there is scope for at least 600 Lounges across the UK, and despite the drop in profits Loungers opened 29 new branches in the past year and is pushing ahead with its ambitions to open 34 more in the next year.
This is includes the launch of Loungers new roadside brand Brightside brand, the first of which opened in February 2023 on the A38, south of Exeter, and second in June 2023 near Plymouth. A further site is planned to open in Honiton in August 2023.
Loungers also noted key hires it made during the year, including Guy Youll as chief people officer, Kate Lister as its first-ever marketing director, and Jono Jenkins as commercial director.
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Nick Collins, chief executive of Loungers said: "I am delighted to be announcing another excellent set of results for Loungers. During the year we opened 29 new sites creating around 1,000 new jobs, launched an exciting new roadside dining brand and achieved industry leading LFL sales growth. We also converted well at the bottom-line achieving Adjusted EBITDA of £47.3m. This is the seventh year in succession we have delivered industry leading LFL sales growth and over that period the estate has grown from 44 sites to 232 today. We are proud to be making a positive contribution to high streets and communities across the UK and there are hundreds more locations around the country for us to target.
"Based on our experience the UK consumer remains positive, inflationary pressures are diminishing and recruitment challenges have eased. As an example, a few weeks ago, we opened Ormo Lounge in the seaside town of Llandudno which achieved a record level of sales for any new Lounge opening in our 22-year history, reflecting the relevance of our offer and how well we trade by the coast.
"More broadly, we are excited about our ongoing roll-out programme and the opportunity to bring our culture and hospitality to around 34 new locations in the coming year, with many more to come beyond that."
Founder and chairman Alex Reilley added: “Loungers has been a listed company for over four years now and in that time it’s fair to say we have had to deal with some unprecedented challenges, most notably the Covid pandemic.
“Despite having to be constantly reactive, and at times having to roll with multiple punches, the executive team, masterfully led as ever by Nick Collins, has risen to every challenge. Our brands have proved to be exceptionally resilient and, through constant innovation and evolution, our offer is more relevant and compelling than it has ever been before.”
The group said that despite a challenging period of inflationary pressures and inconsistent macro-economic signals it has created 3,675 new jobs in the last four years and has continued to push ahead with its ambitious growth trajectory.
Mr Reilley added: "Clearly it is very challenging at the moment, particularly for smaller independent businesses in our sector who have been hit by outrageous and unsustainable energy costs.
“But surely we need to start to provide some balance to the way the sector portrays itself, because it is simply not accurate to characterise it as being all doom and gloom."
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