(Alliance News) - Loungers PLC on Friday said it secured a one-year extension to a credit facility and added that it will take a phased approach when it finally gets to reopen its 168 cafe, bar and restaurant facilities.
Loungers will initially open 47 sites on Monday for takeaway and outdoor dining when England's third national lockdown eases. On April 26, five Welsh sites will also reopen on the same basis.
"Assuming no changes to the roadmap, we plan to re-open all of our English sites by 17 May and our sites in Wales later in May subject to confirmation from the Welsh government," the company added.
And by May 26, four new sites will open, taking its estate to 172. The new units are located in Wolverhampton, Stourbridge, Welwyn Garden City and St Ives.
"We are approaching re-opening with enthusiasm and optimism, encouraged by how strongly the business traded last Summer and Autumn. Our sites have been completely closed since 30 December," Loungers added.
"We anticipate - and are ready to return to - a run-rate of 25 new site openings per year during the course of the year ending April 2022, assuming no further Covid interruptions. The pipeline of new sites is exceptionally strong and we continue to see a large number of attractive opportunities in the locations which we are targeting."
Also on Friday, Loungers said a revolving credit facility with Santander and Bank of Ireland has been extended by 12 months. The GBP15.0 million loan now runs to October 2022. It was issued back in April of last year.
"Covenant tests at 18 April, 2021 have been waived and subsequent quarterly tests until 26 December 2021 have been re-set to provide appropriate headroom to enable a full resumption of the company's new site roll-out programme," Loungers said.
Loungers shares were 2.8% lower at 258.52 pence each in London on Friday morning.
By Eric Cunha; ericcunha@alliancenews.com
Copyright 2021 Alliance News Limited. All Rights Reserved.