Youngs revenues rise 25% as ‘normal’ trading returns
Over the half-year period, profit-before-tax was up by 14.7% to £25m, while adjusted EBITDA rose by 5.4% to £45m
Young’s has seen revenues rise by 24.7% to £186.5m in the half-year ended 26 September, as the group welcomed a return to a “normal pub environment”.
Over the period, profit-before-tax was up by 14.7% to £25m, while adjusted EBITDA rose by 5.4% to £45m. Managed house EBITDA was £55.5m, up £3.3m against last year.
Like-for-like revenue was ahead of same period in 2019 by 6.2%, and up by 20.4% against last year, while adjusted operating profit was up 7.0% to £29m, delivering a margin of 15.5%, down from last year’s 18.1%, which benefited significantly from the reduced 5% VAT rate (£8.2m) and lower utility costs (£1.9m on a like-for-like basis).
An investment of £28.7m was made in the period, including four freehold acquisitions and £14.5m invested in its existing estate, with a further two acquisitions since the end of the period.
Since the period end, managed house revenue for the last 13 weeks was ahead of last year by 6.6%. On a like-for-like basis it was up 2.0% on last year and ahead of 2019 comparatives by 5.5%.
Simon Dodd, CEO of Young’s, said: “I am very pleased with the performance of the business and the hard work of our teams in the first half of the year. This has been the first time in three years we have been able to report on a period without any covid related trading restrictions, with the business returning to normality.
“Recent trading has been robust despite all the economic uncertainty, and we continue to see our pubs in Central London and the City bounce back as workers and tourists return, like-for-like sales since the end of the period were up against last year by 22.0% and 11.1% respectively.”
He added: “Bookings are already strong for our first full trading Christmas in three years, which follows closely after the football World Cup. Although we are conscious of the current macroeconomic conditions, we have fixed contracts for both drinks and utilities, and, whilst not immune to the external cost pressures across our supply chain, we are taking steps to mitigate as far as possible.
“Our strategy of operating premium, individual and well-invested managed pubs is unchanged, and we are confident that it will continue to deliver superior returns for our shareholders.”
