Young’s ‘well-positioned for long-term sustainable growth’
In its interim results for the 26 weeks ending 27 September 2021, Young’s reported a total revenue rise of 183.9% to £149.6m compared to 2020.
The company’s total managed house revenue for the period was £148.9m (compared to £52.1m in 2020) with adjusted operating profit of £37.1m compared to the restricted trading period in 2020 where the company recorded an operating loss of £7.5m.
For the 24 complete weeks trading, like-for-like managed sales were 6.7% behind the same 24 weeks in 2019.
The company undertook a major capital expenditure programme, which included spending nearly £1m on garden stretch tents, heaters and new furniture in a bid to help maximise trade for outdoor service.
The period also saw the London-based firm complete the sale of its 56 tenanted businesses to Punch Pubs & Co for £53m.
Strong trading
Its net debt dropped by £108.4m to £140.3m since the year end and since the period end, the managed house revenue for the last 13 weeks was ahead of 2019 by 7.9% and up 2.7% on a like-for-like basis.
Its group strategy is now entirely focused on the development of invested, managed pubs in the south of England.
Young’s chief executive Patrick Dardis said: “Trading has been strong since the reopening of our pubs, benefitting from our capex programme undertaken in the last financial year and the underlying pent-up demand.
“I am particularly pleased with the performance given restrictions were in place for a significant part of the period. This has helped us celebrate 190 years as a business in a position of strength.
“Starting the period in lockdown, our focus was firmly on how we could safely welcome back as many customers as possible when restrictions eased.”
Getting back to the pub was a feel-good factor for customers and employees, Dardis stated and the company saw its pubs and beer gardens full from mid-July.
Well-positioned for future growth
He added: “We have shown that our pubs are safe and attractive places, that we are ready to operate – and operate successfully – in both the challenging times, and in what we believe will be some very good times ahead.
“Above all, we continue to work hard to look after our customers, their loyalty has never wavered. We are well-positioned for future growth.
“The proceeds from the sale of the tenanted pubs further strengthens our balance sheet, ensuring we have sufficient funds to invest further in our current estate and capitalise on any attractive acquisition opportunities that present themselves.
“Following the disposal, we are now a focused operator of well-invested, premium managed pubs and hotels. We expect to benefit further in future years from the planned capex programme due to kick start in the second half and are well-positioned to deliver long-term sustainable growth.”
