Young’s FY revenues jump 24.9% to £485.8m

Young’s has reported that total revenues rose by 24.9% to £485.8m in the year ended 31 March, thanks to strong like-for-like revenue growth of 5.7% supported by the pub group’s performance during Euro24 and the Christmas trading period. 

Adjusted EBITDA at Young’s also rose 23.2% to £113.6m, with managed house EBITDA for the period increasing 22.4% to £138.3m. 

Despite an almost 10% rise in the National Living Wage, rising utility costs, and £2.1m in dual running costs from the City Pub Group acquisition in the first half, adjusted operating profits rose by £14.1m to £71.4m. This resulted in a “sector-leading” 14.7% margin. 

A “substantial” cash flow and strategic investment approach, along with the intended sale of nine pubs, led to a £19.5m decrease in year-end net debt, bringing it down to £248.3m.

In the most recent nine-week period, revenue from comparable managed houses saw an 8% increase over the previous year. This performance bolsters the board’s optimistic outlook for the full year.

After the year ended, Nick Miller announced his decision to step down from the Young’s board after eight years, with John Dunsmore set to join as a non-executive director. Both will be effective at the pub group’s July AGM. 

Simon Dodd, chief executive of Young’s, said: “I am delighted to announce another excellent set of results, reflecting the strength of Young’s strategy. During the year, customers flocked to our wonderful pubs to watch EURO24 and celebrate Christmas. We have successfully completed the integration of the City Pub Group, realising all the promised synergies and we are well advanced in achieving further operational benefits.

“A tough macroeconomic environment for the industry seems to have been par for the course since I became CEO and government changes coming into effect in April make life no easier. However, we are in excellent shape, with our differentiated approach and premium business model positioning us well in difficult conditions. Young’s continues to be a leader for like-for-like sales in our sector and everything within our control is going to plan.”

He added: “It’s been a fast start to the new financial year, with the great weather throughout April and May meaning our beautiful pub gardens and riverside locations have been packed full of customers. Whilst we remain mindful of the headwinds facing consumers and our industry, we are confident our premium, well-invested, predominantly freehold pub estate will continue to deliver profitable growth.”