Young’s relishes the return of ‘normal trading’ in pubs

Pub group Young’s has posted revenue and profits growth for the six months ending 26 September, compared to weaker trading last year. 

The group saw its revenue climb 24.7 per cent to £186.5million during the period, while its adjusted operating profit increased by 7 per cent to £29million. Adjusted pre-tax profits came in 14.7 per cent higher, at £25million.   

Young’s share price has performed strongly today and was up 4.18 per cent or 43.44p to 1,081.44p this afternoon, having fallen by nearly a quarter in the last year.  

Its adjusted underlying earnings rose by 5.4 per cent to £45million, while basic earnings per share surged 81.8 per cent to 32.66p. 

Citing a ‘welcome return to a normal pub environment’, the London-listed company also highlighted that ‘healthy cash generation’ had helped it reduce its year-end net debt by £5.7million to £168.1million, allowing it to lift its interim dividend by 20 per cent to 10.26p a share.    

Boss Simon Dodd 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 per cent and 11.1 per cent 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.’

The group said it ploughed £28.7million into investments over the period, including four freehold acquisitions and £14.5million invested in its existing estate. 

In its last set of annual results published in May, Young’s reported a pre-tax profit of £41.8million and revenues of £309million. 

On Wednesday, pub group JD Wetherspoon unveiled slowing sales and warned investors it was facing ‘substantially higher’ costs across the group.

The pub chain saw like-for-like sales slip 1.1 per cent in the five weeks to 6 November when compared with pre-pandemic trading in 2019, having risen by 1.5 per cent in the previous nine weeks.

Wetherspoon said: ‘Costs, especially in respect of labour, food and repairs, were substantially higher’. The group said its interest costs are forecast to rise by £10million next year.