Young's saw "sizeable offer" for pubs rejected

Young & Co, the South London pub operator, made what it called a "sizeable offer" for a package of pubs but its bid was rejected, chief executive Steve Goodyear said yesterday.

Goodyear would not comment on the identity of the company with whom Young's placed its bid, nor did he divulge the sum offered.

However it is quite likely to have been Punch Taverns, which has been selling what some describe as its 'crown jewel pubs' in the past few weeks in order to raise cash to pay off some of its debt.

Punch has sold more than 40 pubs recently to the likes of Fuller's, Shepherd Neame, Charles Wells and Frederic Robinson in recent weeks.

Goodyear was speaking as Young's announced its annual results, which saw overall group turnover for the year to March 28, 2009, rose 3.2 per cent to £126.1m, with operating profit slightly lower than last year at £20.5m.

Adjusted pre-tax profit was 3.1 per cent higher at £19.2m.

Young's was in a position to fund acquisitions, Goodyear said, but he noted the group would not pay over the odds for pubs and there was still caution in the market.

"We made a sizeable offer that was rejected. We are in a good position financially and there are no barriers to further borrowing.

"However it is not sensible to chase assets and overpay," he added.

Goodyear said the previously announced £10.7m write-down was related to 28 pubs.

The book value of the Young's pub estate was now around the £320m mark, he added.