Loungers PLC shares (LON: LGRS) rose almost 8% on Friday’s opening bell after the group reported significant outperformance of the market.
The owner of the Lounge and Cosy Club brands shared a trading update for the 24 weeks ending on 4 October 2020, revealing a 25% growth in like-for-like sales when cafes, bars, and restaurants reopened.
During the 24-week period, Loungers PLC has opened new sites in Hull, Sittingbourne, and Birmingham, taking the total to 167. The group said that it plans on opening a further three sites in the current financial year.
“I am delighted with our continued excellent trading which reflects the resilience of our brands and fantastic performance of our team working in very difficult circumstances,” said chief executive, Nick Collins.
“Loungers, and the sector more broadly, have gone to considerable efforts to ensure the safety of our teams and customers. We anticipate further interruptions to trade in the coming weeks and months, but take confidence from our continued market out-performance. We remain well-positioned to accelerate our growth and to continue to lead the market once Covid-19 is behind us,” Collins added.
The strong trading performance comes as many other groups in the hospitality sector are struggling. Wetherspoons shares fell today after the group swung to a £95m annual loss.
Tim Martin, the founder and chairman of JD Wetherspoon, blamed the government for not giving enough support to the hospitality sector and introducing curfews, which “has few supporters outside the narrow cloisters of Downing Street and Sage meetings”.