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Morning Briefing for pub, restaurant and food wervice operators

Mon 10th Jun 2013 - Loungers reports 41% rise in Ebitda to £4.42m
Loungers reports 41% rise in Ebitda to £4.42m: Loungers, the Bristol-based café and bar group led by Alex Reilley and Jake Bishop, has reported turnover for the 12 months to 30 April topped £22m from which the company saw a 41% rise in full-year pre-central EBITDA to £4.42m. The turnover and profit surge follows the opening of nine sites during the period, which included three Cosy Club openings in Salisbury, Cardiff and Exeter. Turnover increased 47% to £22.14m with company EBITDA (before exceptional and pre-opening costs) increasing to £2.91m (£2.1m FY12). Like-for-like sales for the period were +6.2% and the group also reported that LFL sales for May were a very healthy +9.6%. Loungers managing director Alex Reilley said: “We’re really pleased with the performance of the business and we’re particular pleased with how much we’ve grown having coming straight off the back of a private equity deal. Last year saw the roll-out begin to gain some significant momentum and moving straight into the new financial year we’ve really hit the ground running with two additional sites already open and a well-stocked pipeline of sites that should see us open at a rate of at least one a month going forward.” Loungers opened its 34th site, Vivo Lounge in Dorchester’s Brewery Square development, last week following a £450,000 investment. The 4,500 sq ft site, which is the group’s 28th Lounge, is located on the lower ground floor of a Grade II listed building within the scheme and comprises of 130 covers internally and a further 70 covers externally. Commenting on the new opening Reilley said: “We’re extremely pleased to have opened in what has fast become a very popular scheme, particularly as we’re in a building of significant character and we have the benefit of a fantastic terrace”. “There’s a lot of casual dining competition within the scheme but we believe the informal, flexible nature of our offer gives us a real point of difference and we have fairly high expectations of how we’ll trade there”. Next up for Loungers are two openings in July with Portivo Lounge in Gloucester Quays opening on the 6 July followed by Expo Lounge in Didsbury, Manchester two weeks later. It is understood that the group expects to open up to a further four sites in and around the Liverpool area before the end of 2013 as well as adding sites in the East Midlands and Cornwall.

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