The cafe/bar chain Loungers has seen profits jump by 23.3% to £12.4million as it snaffles premises at lower rents due to the current high street doldrums.
The company, which was started in Bristol and expanded into Plymouth in 2009, is rapidly growing and is expecting to open 25 new sites this year to bring its total to 146 across the 海角视频, from the North East, through to Wales and the South.
It will continue this march by launching in the £53million The Barcode multiplex development, in Plymouth, in October 2019.
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The company said its strategy had been to stand firm on what it calls “rental discipline”, which means a refusal to pay high rents.
A statement to the Stock Exchange said: “Whilst the well-documented travails of the high street are undoubtedly throwing up opportunities, it is equally true that many of the regional high streets we have identified remain very well supported and consequently sites that become available are relatively highly valued.
“A pillar of the group's success to date has been a refusal to overpay for new sites, reflected in our rent to revenue ratio of 5.2% (2018: 5.2%). This rental discipline remains a core focus.”
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Loungers operates through its two complementary brands - Lounge and Cosy Club - in the 海角视频. .There are 122 Lounges nationwide, principally in secondary suburban high streets and small town centres. One of the chain’s early successes is the Seco Lounge in Plymouth’s trendy Royal William Yard.
Cosy Clubs are more formal bars/restaurants offering reservations and table service and an all-day offering, typically located in city centres and large market towns. There were 24 Cosy Clubs nationwide, with its latest edition earmarked for Plymouth this year.
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The AIM-listed company saw revenue grow 26.4% to £153million with like-for-like sales were hiked 6.9% (2018: 6%).That revenue has leaped from £68.5million in just three years.
The Loungers chain was started in Bristol by three pals in 2002. When it invested £250,000 to open Plymouth’s Seco Lounge in March 2010, creating 20 jobs, it was the chain’s 14th outlet.
It floated in early 2019 with shareholder Lion Capital holding a 39% stake and founders Alex Reilley and Jake Bishop and other senior managers together continuing to hold 16% of the firm.
Nick Collins, Chief Executive Officer of Loungers said: "These results represent a strong performance for the financial year ending April 21, 2019, and are in line with both our, and the market's, expectations.
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“Our revenue and profit growth not only reflect the continued success of the roll-out, but also our unwavering focus on our customers, the evolution of our proposition and how we support and invest in our teams.
"Our admission to AIM post the FY19 year-end has meant almost 600 employees have had the opportunity to become shareholders in Loungers plc and it is fantastic that their hard work and commitment can be rewarded in this way.
"Our new financial year has started well and our roll-out strategy for both brands is on schedule. I remain confident about the outlook and future growth prospects for the Group."