Young's EBITDA up 23%, as £11m of costs approach
Young’s Pubs has released its half-year results for the 26 weeks ended 30 September 2024.
Following the release of its half-year results for the 26 weeks ended 30 September 2024, pub operator Young's says it is maintaining its sector-leading performance.
Total revenue for the period was up 27.2% to £250m, seeing an adjusted EBITDA up 23.2% to £59m and managed house EBITDA for the period up 25.1% to £73.8m.
While it says its "sector-leading margin" of 15.2% has driven operating profits of £7.1m, CEO Simon Dodd has warned that the government's autumn Budget will result in an extra £11m of costs for the business, as it looks to manage rises in National Minimum Wage and Employer’s National Insurance payments.
"We’ve achieved a huge amount as a business in the last six months, reflected in another strong set of results," says Dodd. "“The new government’s Budget will result in significant increased costs for our industry in the near term. We expect the cost impact to be approximately £11m on an annualised basis from next April. We will work to see how we can mitigate these headwinds without passing on all the cost to our loyal customers. We would like to see certainty and delivery of real business rate reform which will benefit all hospitality businesses."
Continued investment
Young's saw £21.7m of investment in the half-year period, with £19.4m invested in its existing estate and a further £2.3m invested in the City Pub Group estate. The value of its freehold estate as at 1 April 2024 was £1bn.
The pub company saw a healthy cash generation alongside the planned selective disposal of six pubs, which reduced the year end net debt position by £12.0m to £255.8m (£346.5m including leases).
"I am very pleased with our performance and the progress we have made during the period, which has been achieved despite some challenges," adds Dodd. "The weather was frustrating yet again, with a wet spring and limited periods of prolonged sunshine during the summer months, however EURO 24 and England’s successful run to the final provided a welcome boost to drink sales with our pubs performing exceptionally well on match days."
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