Loungers (LGRS) H1 2025 earnings summary

Executive summary

• Revenue up 19.2% year-over-year to £178.3m for the 24 weeks ended 6 October 2024, driven by 4.7% like-for-like sales growth and 17 new site openings.

• Adjusted EBITDA increased 25.0% to £29.8m, with margin improvement to 16.7%.

• Operating profit rose 31.8% to £10.2m; profit before tax up 51.3% to £6.0m.

• Cash generated from operating activities increased to £32.4m.

• On track to open 35 new sites in FY25, targeting 292 sites by year-end.

Financial highlights

• Revenue: £178.3m (up 19.2% year-over-year).

• Adjusted EBITDA: £29.8m (up 25.0%); margin 16.7% (up 0.8ppts).

• Operating profit: £10.2m (up 31.8%); margin 5.7% (up 0.5ppts).

• Profit before tax: £6.0m (up 51.3%).

• Diluted EPS: 4.0p (up 53.8%).

• Net cash from operating activities: £32.4m (up £9.0m year-over-year).

• Non-property net debt reduced to £12.2m.

Outlook and guidance

• LFL sales growth of 3.9% in first seven weeks of Q3, despite weather impact.

• Confident in absorbing increased employer NICs and wage costs, though price rises will be higher than previously anticipated.

• Pipeline for new sites remains strong; on track for 35 openings in FY25.