Loungers, the privately-owned group behind the Lounge and Cosy Club concepts, has reported a 55% growth in turnover for the 12 months to 30th April, after opening four new sites during the period.
The company, which is led by managing director Alex Reilley, saw turnover for the year climb to £10.93m, while unit EBITDA was up from £1.46m to £2.46m and underlying EBITDA increased 88% to £1.64m.
Reilley also revealed a “marked increase” in recent interest from private equity firms although he was quick to dismiss the prospect of an imminent deal.
He said: "With the aid of a bit more bank debt the business is at a point where we can grow at a pace which is operationally sensible for us at this time and we're therefore not seeking an equity partner.”
However, he added: "We believe we can comfortably reach 32 sites by April 2013 and the three of us that own the business will almost certainly be considering our options ahead of this date.”
The group ended the financial year with 17 sites, having opened 4 outlets during the period, including its first Cosy Club site in Taunton, in September.
It intends to add a further seven sites by the end of April 2012 and is pushing on with rolling out both its Lounge and the Cosy Club concepts.
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 the group has two additional Lounge sites lined up in Bournemouth as well as another Lounge site in Birmingham. It has also secured Cosy Club sites Stamford and Exeter.
The group is also thought to be looking at opening its first Cosy Club site in Cardiff.
Reilley 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 last 12 months and those which opened toward 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.
"We've got a fully stocked pipeline to take us up to 24 sites by the end of April 2012. And we are now working on site opportunities beyond our new financial year of which we have two sites already at advanced stages of negotiation.”
Reilley also confirmed 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.”
