Trading Update - Come rain or shine, Loungers delivers
Loungers has achieved record 1H25 revenues of £178.3m, +19.2% on 1H24. 16 new Lounge bars and one new Cosy Club, together with last year’s new sites, contributed 14.5% whilst 4.7% LFL sales outperformed industry growth by over 3% due to Loungers’ all-day attractions.This growth is especially strong considering the unseasonal weather, the negative impact of the Euro 2024 football tournament and the fall in UK consumer confidence.
Although our 2H25 estimates look cautiously set, inferring c.3% LFL and c.10% new site revenue growth, we make no changes to our FY25E forecasts at this stage, given the consumer uncertainty ahead of the Autumn Budget on 30 October.
The 273-site group still has huge scope to grow towards its ambition of over 650 sites, driving 14% CAGR in Revenues, and 21% CAGR in Adj. EPS FY24-FY27E. We believe this high growth is not reflected in the group’s valuation and reiterate our Fair Value of 370p / share (8.0x cal. 2025 EV/Adj. EBITDA).
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