Loungers plans seven new sites after 88% rise in profit
Bar and casual-dining business Loungers has announced plans for seven additional sites by next April after reporting a 55% growth in turnover and a rise in profit of 88%.
The Bristol-based group saw turnover increase to £10.93m (from £7.07m) in the year to 30 April, while EBITDA (earnings before interest, taxes, depreciation, and amortization) rose to £1.64m from £872,000.
Having opened four sites in the financial year, the company ended the period with 17 sites and has plans for seven more in the next 12 months.
Managing director Alex Reilley (pictured) said: "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 past 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".
The group's second Cosy Club is due to open in Bath in mid-June, followed by Santo Lounge in Shirley, Southampton in early August. Reilley confirmed that there were two additional Lounge sites lined up in Bournemouth, as well as another Lounge site in Birmingham in addition to having Cosy Club sites secured in Stamford and Exeter.
"We've got a fully stocked pipeline to take us up to 24 sites by the end of April 2012," he confirmed. "And we are now working on site opportunities beyond our new financial year - we have two sites already at advanced stages of negotiation."
Reilley added that the group's geographical strategy would remain unchanged. He said: "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 three-hour drive from Bristol without going into London."
Words from the Wise - Alex Reilley >>
Loungers plans six openings in 2011 >>
By James Stagg
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