Loungers (LGRS) H2 2024 earnings summary

Executive summary

• Achieved record revenue of £353.5 million, up 24.7% year-over-year, with adjusted EBITDA up 29.3% to £44.2 million and strong like-for-like sales growth of 7.5% for FY24 and 5% in the first 11 weeks of FY25.

• Opened a record 36 new sites, maintaining robust performance and strong pipeline across all brands and site age cohorts.

• Consistent outperformance since IPO, with continued investment in operational structure, leadership, and team development to support growth.

Financial highlights

• Adjusted EBITDA (IAS 17) rose 29.3% to £44.2 million, margin increased to 12.5% from 12.1%, and gross profit up 27.4% to £144.1 million.

• Profit before tax (IFRS 16) increased 56% to £11.4 million.

• Free cash flow of £35.4 million, with 107% cash conversion from adjusted EBITDA and cash generated from operations at £47.1 million.

• Net debt at year-end was £9.7 million, with term loan reduced to £20 million and increased revolving credit facility.

• New site capex of £38.5 million, with closing cash at £10.3 million.

Outlook and guidance

• FY25 inflation expected to be low single digit, with food and drink inflation moderating and full-year benefit from renegotiated supply contracts.

• Targeting a medium-term return to pre-COVID EBITDA margin of 13.5% through supply chain, labor, and central cost efficiencies.

• Pipeline remains strong with 46 sites at heads of terms or in legals; property market remains tenant-friendly.

• No plans to accelerate site rollout beyond current 35-36 sites per year, but open to future expansion if operational capacity allows.