Loungers, the Piper-backed group, expects to assess its options in regards to a probable sale or flotation, next year.

Speaking to The Times, Nick Collins, Loungers’ managing director, said that the company, which is to post turnover of c£50m in its most recent financial year with EBITDA of £11m, continued to receive unsolicited approaches from third parties.

Although a trade sale or secondary private equity buyout are regarded as likelier options, Collins said that an initial public offering was “coming on to the radar a little bit more”.

The group recently opened its 62nd site, a £1.1m Cosy Club venue in Birmingham, one of twenty openings in the pipeline this year. It expects to ramp this figure up to 25 in 2016.

Collins told The Times that like-for-like sales had grown strongly. He said that its openings were being funded 75% from its cashflow, with the balance bank debt from Santander.

Loungers, which has about £10m of debt, is 43.5% by Piper, with 50% still held by co-founders Alex Reilley and Jake Bishop, with the balance held by management.

Collins said that like-for-like sales had grown strongly. He said that its openings were being funded 75 per cent from its cashflow, with the balance with bank debt from Santander.