Young's reports 19.4% revenue boost despite cost headwinds and rail strikes
Despite a year of inflationary cost pressures and rail strikes, pub group Young's has reported revenues of £368.9m, up 19.4% on last year.
In its preliminary results for the 53 weeks to 3 April 2023, the group reported that managed pub like-for-like revenue was up by 12.9% on a 52-week basis, with adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) of £85.5m. The business said its central London pubs were bouncing back as workers and tourists returned to the capital, with the condensed working week resulting in increased sales across Tuesday to Thursday.
Although Young's has not been immune to increasing costs, and rail strikes are estimated to have had a negative impact on revenue to the tune of £3.7m, this did not stand in the way of it achieving record festive bookings, which were also significantly ahead of the same period in 2019.
Total profit before tax was £36.2m, 14% down on the previous year, which Young's said was largely due to "a small movement in our property revaluation".
The company invested £24m on acquisitions, including six new pubs during the period and £34.4m across its existing pubs estate.
Post-results sales have seen managed pub like-for-like sales for the last seven weeks up by 4.8% despite the unseasonably cooler and wetter start to spring, with pubs able to capitalise on the Easter and bank holiday sunshine and "minimal upside" from the Coronation.
The results said the business remained highly profitable and over the coming months, as inflation is predicted to soften, margins are expected to likewise improve.
Simon Dodd, chief executive of Young's, said: "The positive trading momentum of the first half continued throughout the period, with unwavering customer demand for our outstanding pubs and the unrivalled Young's experience. The negative impact of the rail strikes did not stand in the way of us achieving numerous record weeks, as sales were boosted by glorious summer sunshine and the first ever winter FIFA World Cup.
"We were pleased to see a further increase in people visiting our City and Central London pubs alongside positive Christmas trading. Our performance last year was even more impressive given the cost headwinds facing the industry and we are encouraged that some of these pressures are starting to ease."
He added: "It's been a good start to the new financial year with sunny weather over Easter and the early May bank holiday. There is also huge excitement for the Rugby World Cup later this year. We are confident our premium, well-invested predominantly freehold pub estate, alongside our healthy balance sheet, will continue to deliver superior returns for our shareholders."
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