Loungers to open more as sales rocket
1 June, 2011
Loungers, the Bristol-based operator behind the Lounge and Cosy Club brands, has reported surging sales and profits in its latest set of financial results.
Sales across the group in the year to 30 April jumped by 55% to £10.9m, while underlying EBITA—excluding start-up and exceptional costs—rose 88% to £1.6m.
Loungers opened four sites during the financial year to bring its total to 17. It launched its first Cosy Club in Taunton last autumn. The heartlands for its 16-strong Lounges chain are in Bristol and the south west, though it has recently edged into Wales and along the south coast.
Managing director Alex Reilley said the new openings had all performed well. “We are obviously extremely encouraged by the performance of the business and are particularly buoyed by the contribution of the units we’ve opened in the last 12 months and those which opened towards the latter months of the previous financial year. Our decision to grow more aggressively against the backdrop of the economic downturn was considered extremely brave by many but has certainly paid dividends.”
Loungers will push on with its expansion plans, and hopes to add seven more sites over the current financial year. A second Cosy Club will open in Bath in a few weeks, followed by Stamford and Exeter. More Lounges are lined up for Southampton, Bournemouth and Birmingham.
Reilley said the group was aiming for more than 30 sites in a clear geographic spread. “We’ve got our pitch marked out and believe that there’s still loads of opportunities, easily enough to take us beyond 30 sites, within a 3 hour drive from Bristol without going into London.”