Food sales boost Young's results

A hike in food sales across Young & Co's managed estate helped offset a loss in turnover from the group's brewery operations following the sale of its historic Ram brewery last year.

Reporting its results for the year to March 31 2007, Young's said growth in food sales came in at 33 per cent and now accounted for 23.6 per cent of managed sales.

Noting that the transfer of its brewing and wholesaling activities to Wells & Young's meant that its focus was now "firmly on our retail activities", the group said it was pursuing its strategy of positioning itself at the premium end of the pub sector.

Overall turnover for the group rose 2.2 per cent to £126.6m, while sales from its retail operations grew 15.3 per cent to £113.3m.

Pre-tax profits adjusted for exceptionals grew 18.5 per cent to £12m.

Adjusted earnings per share rose 28.3 per cent to 75.36p, with a recommended total dividend of 37.35p, up 50 per cent.

The group's 114 managed pubs saw sales up 18.1 per cent to £98.6m, with operating profits up 17.6 per cent, while sales throughout its 102 tenanted and leased pubs dipped 0.6 per cent to £14.7m, with like-for-like profits up 4.6 per cent.

Commenting on the results, Stephen Goodyear, Young's chief executive, said: "Young's has been transformed over the past year. The substantial changes we have made to the business, together with the improving returns we are getting from ongoing investment in our estate, are clearly evident in our underlying results, particularly in our second half trading.

"This momentum has continued into the current financial year. Trading in our pubs in the first eight weeks has been strong, with total sales for the period to May 26 up 25.1 per cent and up 9.6 per cent on an uninvested like for like basis.

"Whilst there are clearly near term risks for our industry, from the smoking ban and pressures on consumer spending, we believe we are well prepared to face these challenges. Young's is a business in very good shape."