Loungers shares gained 3.2% to 188.5p in late afternoon trading on Wednesday after the group announced a record revenue surge of 203% to £237.2 million compared to £78.3 million in FY 2022.
The company reported an adjusted EBITDA rise to £53.6 million against £13.9 million, along with an adjusted EBITDA margin of 22.6% from 17.8%.
Loungers swung back to an operating profit £28.4 million compared to a loss of £7.7 million and an adjusted operating profit of £34 million from a loss of £3.9 million in the previous year.
The group further highlighted cash generated from operating activities of £69.6 million from £12 million.
The firm also reduced its non-property debt by £33.2 million to £1 million, significantly shoring up its balance sheet.
The company opened a new record of 27 sites across the UK, with its 200th site recently opened for the public.
Loungers grew its build teams to five, marking the capacity to open approximately 32 sites per year.
The company added it was optimistic regarding its outlook, with no observed change in customer behaviour despite macro-economic headwinds, and the group said it was on track to hold at least 500 sites across the UK, alongside its strong pipeline of developments in the future.
“These results demonstrate the extent to which Loungers has thrived over the past year, achieving a record number of openings, record underlying like for like sales growth and a record level of profits,” said Lounger CEO Nick Collins.
“We are benefitting from changes in consumer behaviour, with more people staying local, working from home, and supporting their local community and high street. We are delighted to have just opened our 200th site, and to be announcing today that we are increasing our roll-out target for site openings to 30 for this year.”
“Whilst the short-term economic outlook is challenging, we are in an excellent position to weather the storm and to take advantage of growth opportunities coming out of it. We have a strong balance sheet, a very capable and highly motivated team and an affordable, value for money all-day offer with enormous scope for further expansion across the UK.”
Loungers mentioned an EPS of 17p after a loss per share of 10.9p in FY 2021.