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Young's exceeds £100m sales in first half

By John Harrington , 22-Nov-2012
Last updated on 22-Nov-2012 at 10:41 GMT2012-11-22T10:41:03Z

Young's exceeds £100m sales in first half

Young’s, the London-based pub operator, has broken the £100m revenue mark in the six months to 1 October, which it described as a period of contrasting fortunes, with the first quarter being the wettest on record followed by a second quarter that featured the Olympics and Paralympics.

Revenues grew 10.7% to just over £100m. Adjusted pre-tax profits climbed 11.2% to £13.9m, with net cash generated from operations up 11% to £16.3m and an interim dividend per share up 5.1% to 7.02p. Adjusted operating profit increased 8.5% to £16.3m.

Managed house revenues increased 12.9% to £93.8m, with like-for-likes up 5.7% and operating profit up 15%. In total £8.9m was spent on its managed estate in the period. RevPAR increased 2.6% to £54.14. Ten rooms were added in the period, with a further 17 rooms already in H2.

Revenue in its Geronimo pubs was up 32.7% with the transfer of three sites to the division and the recent investments in sites such as the Oyster Shed on the embankment and the Cow and the Calf in Stratford. Geronimo like-for-likes grew 4.5%.

Managed drink revenue increased 4.7%, and food revenue was up 8%.

Total sales in the tenanted arm fell 14.2% to £6.2m but sales were "broadly flat" on a like-for-like basis. Total operating profit fell 19% to £2.3m.

Young’s sold five tenanted pubs in the first half, generating proceeds of £2.8m and an exceptional profit of £0.4m. It also transferred five sites to managed.

Since the period end, managed house revenue has risen 9.4% and 6% on a like-for-like basis. Two new managed sites have opened and two large developments have re-opened, with another set to re-open before Christmas.

Net debt at the period end was £117.1m, down £1m in the period. Basic earnings per share were 24.06 pence and, once adjusted for exceptional items, were 22.13 pence, 18.2% higher than the corresponding period last year.

Stephen Goodyear, chief executive of Young’s, said: "These excellent results reflect some benefit from the extraordinary events we have seen in London this summer; they have also been achieved despite some periods of truly awful weather. They are therefore testament to the ability of our people to make the very best of our high quality and well invested estate whatever the circumstances.
"We have seen very encouraging like for like growth from both Young’s and Geronimo, and across liquor, food and accommodation sales. We have continued to invest in the estate and look forward to seeing the benefit of recent openings in the second half.

"Despite continued caution on the part of the consumer, I believe we are well positioned to continue to generate profitable growth and therefore attractive returns for our shareholders."