Young’s ‘confident’ despite pandemic denting revenue by more than £200m

21-May-2021 - Last updated on 21-May-2021 at 12:56 GMT

'Strong recovery': 'Despite the many lockdowns and disruption to our business, the financing decisions taken during the summer allowed us to continue to make significant investments in our pubs,' Young's chief executive Patrick Dardis said

London-based pub operator Young’s saw group revenue fall by in the region of £220m during the 52 weeks to 29 March 2021.

According to the firm’s most recent set of financial results, revenue over the most recent fiscal year fell from £311m in 2020, to £90.6m.

What’s more, a swing of around £80m landed Young’s a loss of £44.1m having profited to the tune of £37.7m during the year prior. Adjusted EBITDA also feel from £79.6m to just £300,000.

On top of this, Young’s managed estate yielded revenue of £87m, with an adjusted operating loss of £18.6m, while its 50-site strong tenanted division – Ram Pub Company – registered revenue of £3.3m, with an adjusted operating loss of £700,000.

As reported by The Morning Advertiser, Young’s has appointed property agent Savills to handle the potential sale of the Ram Pub Company and made a statement to the London Stock Exchange confirming discussions over a potential sale.

Expecting ‘excellent growth’

During its most recent financial year, Young’s secured additional financing of £88.4m through an equity issue and £20m through a new bank facility.

The operator also came to an agreement with its lenders to replace existing covenant tests with a £25m monthly available liquidity test through to 31 March 2022.

Irrespective of its fiscal symptoms after a year of pandemic measures, however, Young’s poured roughly £17m into its 200 managed sites, expanded its relaunched Burger Shack brand and opened a pair of new pubs – Enderby House in Greenwich and Alban’s Well in St Albans, Hertfordshire.

“Despite the many lockdowns and disruption to our business, the financing decisions taken during the summer allowed us to continue to make significant investments in our pubs, with some truly transformational projects,” chief executive Patrick Dardis said.

“We expect to see excellent growth from that investment this year and beyond.

“We are confident with the steps we have taken to ensure Young’s continues to be in a position of strength and there is potential for a strong recovery this summer,” he added.

Young’s outdoor trading in the 144 pubs that were able to open from 12 April has achieved 85% of “normal” trade over a five-week period, with the Group expecting business to reach pre-Covid levels by the end of June as long as the Government’s roadmap date was stuck to.