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Young’s raises £88m from investors

Young’s has tapped more than £88m from its investors through a share placing ahead of pubs reopening from next week.

The pub operator said it had placed a total of 4,263,453 placing shares at 1,160p per share, and 4.9m non-voting shares at 735p per share to raise £85.5m.

In addition, the group raised a further £2.7m through retail investors.

Certain directors within the group have also agreed to subscribe for an aggregate of 13,393 new ordinary shares and 10,755 new non-voting ordinary shares.

Altogether, the new shares represent 19.2% of the total existing issued ordinary share capital of Young’s prior to the placing.

The operator has previously said it was in the process of securing an additional £100m to help support it through Covid-19, while raising £30m through the government’s Covid Corporate Financing Facility (CCFF).

The group has also raised £70m through a £50m loan with Natwest and HSBC, and a £20m revolving credit facility with Natwest.

As the crisis escalated in March, Young’s confirmed it was introducing a new set of measures to support its team across London and the south east.

This included a three-month property rent holiday for all of its tenants in order to support them through their closures. 

Earlier this month, the group also said that lockdown would have a “disproportionate” impact on profits, estimated to be £7.7m due to the “limited opportunity” for mitigating actions.

In addition, the closure of its sites for the final 10 days of the financial year, as well as the preceding downturn in trade, resulted in an estimated £13m shortfall in revenue.

At the time, Young’s warned that the extent of the pandemic’s damage going forward is “largely unknown”, adding that there is “no experience of such a crisis” and no clear indicators of what the lasting effects on consumers will be. 

Nonetheless, it now expects its pubs to have opened by 3 August, and predicts its next full-year trading will be “materially” below average. The group also expects sales to return to “more normalised” levels in 2022. 

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