Young’s says Reeves’ Budget will cost the group an extra £11m a year

The boss of Young’s & Co Brewery claims policies introduced by Rachel Reeves in the Autumn Budget will cost the business an additional £11million a year. 

Over 200 hospitality businesses have signed a letter to the Chancellor warning that rises in employer national insurance contributions and the minimum wage will force, closures, job losses and weaker investment. 

Simon Dodd, the group’s chief executive, said on Thursday the Budget will lead to a ‘significant increased costs for our industry’, but Young’s would attempt to ‘mitigate these headwinds’ while limiting costs passed onto customers.  

 He said: ‘We will work to see how we can mitigate these headwinds without passing on all the cost to our loyal customers.

‘We would like to see certainty and delivery of real business rate reform which will benefit all hospitality businesses.’

Young’s added that it plans to focus on bolstering its use of technology and internal investment. 

Young’s revenues rocketed 27.2 per cent to £250million in the 26 weeks to 30 September.

The London-listed business upped its interim dividend to 11.53p per share, representing an increase of 6 per cent on a year ago.  

Young’s adjusted EDITDA increased by 23.2 per cent to £59million, while its operating profit rose from £7.1million to £38.1million.

The group said its profit upturn was driven by a ‘sector leading margin of 15.2 per cent’.  

Pint frenzy: Young’s pubs sold 850,000 pints during seven England Euro’s football matches 

The Euros football tournament also buoyed sales, with pubs performing ‘exceptionally well’ on match days, Young’s said. During seven England matches during the Euro’s, Young’s pubs sold 850,000 pints. 

Dodd said: ‘We’ve achieved a huge amount as a business in the last six months, reflected in another strong set of results.

‘The City Pub Group integration has gone well, with the pub teams welcomed into the Young’s family and all operational control brought together under one leadership team.

‘Our teams have done a fantastic job, and I’m looking forward to seeing our pubs thrive together.

‘Given the quality of our estate and on-going strategy, we remain confident in our ability to deliver long-term growth, including achieving the planned synergies from the City Pub Group acquisition.’

Young’s shares rose 1.31 per cent or 12.00p to 928.00p on Thursday, having fallen around 14 per cent in the last year.  

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