Young's reports successful year, despite market challenges

Young's reports successful year, despite market challenges

Young & Co.‘s Brewery plc has announced its preliminary results for the year ended 2 April 2018, reporting a successful year, despite a challenging market, with total revenue up 6.2% to £279.3m.

Managed house operations outperformed the sector, with revenues up 6.9% to £266.4m, underpinned by industry-leading like-for-like sales growth of 4.2%.

Like-for-like revenues at the Ram Pub Company are also up 1.6%, and £53m of investment was made during the year through acquisitions and upgrades to Young’s existing estate.

Operating cash flow was £61.4m – and the net debt to adjusted EBITDA ratio is ‘one of the lowest in the sector’ at 2.0.

2017/18 was the 21st consecutive year of dividend growth, with a proposed 6.0% increase in final dividend to 10.2p, resulting in a total dividend of 19.6p (2017: 18.5p).

Young’s has also confirmed a good start to the current financial year since the period end; managed house revenue in the first seven weeks was up 11.0% in total and up 7.5% on a like-for-like basis.

“I am delighted with this strong set of results, delivered against a challenging market backdrop, as they demonstrate the benefit of our strategy of running a differentiated, premium and well-invested pub estate in superb locations and with a highly customer-centric approach,” comments Patrick Dardis, chief executive of Young’s.

“We have continued to invest in our future growth through a combination of exciting acquisitions and investment in our existing estate while also upgrading our technology to enhance the customer experience and realise productivity gains.

“Although uncertainty prevails in both the political and economic environment, we are confident that our strategy will continue to deliver superior shareholder returns. I am a firm believer that the traditional British pub will never go out of fashion and, as a result, I’m both excited and optimistic about the year ahead.”