‘Landmark year’ for Young's, City Pub Group integration on track

19-Jun-2024 - Last updated on 19-Jun-2024 at 08:58 GMT

Figures up: Young's has reported great sales despite poor weather versus last year

London-based pub operator Young’s & Co has announced total sales for the past nine weeks have risen by 24.4% while like-for-like (lfl) sales are up 2.4%.

The business made the announcement as it reported total revenue for its financial year (FY24 – 52 weeks ended 1 April 2024) has risen 5.4% to £388.8m versus the previous year (FY23).

Other notable figures are a 9.4% uplift in adjusted operating profit to £57.3m, adjusted profit before tax rose from £45.2m to £49.4m, adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) went up 7.8% from £85.5m to £92.2m.

Meanwhile, net debt rose 117.7% from £165.2m to £359.6m and statutory profit before tax fell 42.8% from £36.2m to £20.7m.

The company said trading has been positive with total sales for the past nine weeks, up 24.4% with the inclusion of City Pub Group, and like-for-like sales up by 2.4%.

Net debt predicted to fall

It added this is against the backdrop of last year’s excellent late spring and early summer weather, which delivered a strong comparative period and little in the way of reasonable weather so far this year.

It is also expected net debt to adjusted EBITDA ratio will fall back to more historical levels by the end of FY25 once a full year of the additional EBITDA from the City Pub Group acquisition is included.

Young’s completed the acquisition of The City Pub Group on 4 March, with the integration progressing as planned. The acquisition contributed £7.2m revenue and EBITDA of £1.7m for the 4 weeks of ownership in the period.

It has a strong balance sheet and cash generation has supported £84.5m of investment in the Young’s estate, including £36.5m on eight individual acquisitions and £48.0m invested in existing pubs.

Industry-leading profitability

Young’s chief executive Simon Dodd said: “In a landmark year for Young’s, we have reported another excellent financial performance with industry-leading profitability. This is once again testament to the excellent work and energy of our teams and our proven strategy of operating premium, individual, differentiated and well-invested pubs and bedrooms.

“We were delighted to complete on our acquisition of The City Pub Group in March, a real milestone for Young’s. We welcome the City team to the Young’s family and respect the many initiatives that have brought them so much success. I look forward to working with the talented teams to evolve the business over the coming years.

“Our investment for future growth didn’t stop with The City Pub Group acquisition, during the period we acquired eight great pubs, made further investments in our existing estate, and upgraded our technology to enhance the customer experience and realise productivity gains.

“Looking ahead, we face some challenges but there is plenty for us to be excited about this year. We are heading into a feast of summer sporting events, starting with Euro 24, Wimbledon and the Olympics. Then we look forward to making the most from the return of the autumn rugby internationals, which provides a fantastic opportunity given our rugby heritage.

“Our belief in Young’s long-term growth potential remains as good as ever, and we are confident of our performance in the year ahead.”