Young’s forecasts positive cash flow by May

By MCA

- Last updated on GMT

Reopening date: Young's is aiming to get its pubs open again for 17 May, according to the Government's proposed roadmap
Reopening date: Young's is aiming to get its pubs open again for 17 May, according to the Government's proposed roadmap

Related tags: Young's, Managed pubs, Pubco + head office, Finance

Young’s has announced plans to reopen 140 of its managed pubs with outdoor spaces on or around 12 April, as well as an update to its finances which it gives it available borrowing facilities of £225m.

Assuming the Government roadmap timetable is followed, Young’s said the rest of its managed estate should open on or around 17 May, with restricted indoor trading.

If normal trading conditions resume from 21 June, the company said it expects to deliver a positive cash flow in May.

Young’s said it would not be paying a dividend for 2020/2021, but would aim to resume the payments, “as is appropriate, although no decision has been made when that will be”.

The company has agreed with NatWest and the holders of its senior secured notes that any dividend payments during 2021/22 will not exceed £5m in aggregate, but there is no restriction on the company recommending a final dividend with its results for 2021/22, payable in the following financial year, as normal.

The noteholders and the company’s banks have agreed to extend the monthly available liquidity test up to and including March 2022, with a headroom requirement of £25m.

Young’s will shortly be seeking an extension, through to November, of its £20m bilateral revolving credit facility with NatWest.

In May, the company will repay the £30m borrowed through the Covid Corporate Financing Facility from existing facilities.

This will give Young’s committed available facilities of £255m, inclusive of the £25m required to meet the available liquidity test referred to above.

Related topics: Other operators

Related news

Show more

Spotlight

Follow us

Pub Trade Guides

View more

The MA Lock In Podcast

Join us for a Lock In

FREE EMAIL NEWSLETTER

Subscribe to The Morning Advertiser

The definitive voice for the pub trade

Get the latest news, analysis and insights from the uk pub sector straight to your inbox!