Young & Co has reported preliminary results for the 52 weeks ended 31 March 2014, showing a strong performance with revenue up 8.8%; adjusted operating profit up 14.9%; growth in accommodation sales (RevPAR up £2.76); the acquisition of 2 managed and 3 tenanted pubs; and net debt reduction.
Stephen Goodyear, Chief Executive of Young’s, commented:
“This was another excellent year, with strong revenue and profit growth, particularly when compared with last year which included the Olympics. Our focus on London and the south east is a real advantage, as is our very clear positioning at the premium end of the market. The improving economic picture is increasing customer confidence which we are seeing in both footfall and spending patterns, with customers trading up in both drink and food.
“Such is the strength of our cash flow that we have been able to invest £33.6 million during the year, whilst reducing our debt. As a result, there is today real depth and richness to our estate, and we remain ambitious to expand and broaden it further.
“Trading since the period end has been positive with managed house revenue in the first seven weeks of the new financial year up 8.5% in total and 7.2% on a like-for-like basis.
“The consistently high level of investment in our estate, combined with the hard work put in by our teams across the group, is clearly paying off. Coupled with the improving economic news flow, this gives us every reason to be confident that the current year will be another positive one for Young’s.”
Highlights
- Strong performance for the full year, with further like-for-like growth in second half against strong comparatives and despite the wettest winter on record;
- Managed house revenue increased 9.6% to £199.0 million, with same outlet like-for-like sales up 6.7%; managed house adjusted operating profit up 13.7%;
- Continued growth in accommodation sales driven by both occupancy and room rates resulted in RevPAR of £52.02, up £2.76. Additional rooms set to open in first half will bring the total number of rooms to 443 (2013: 397);
- A record £19.8 million invested in the existing estate; two new managed and three tenanted pubs acquired;
- Net debt reduced both in absolute terms and as a multiple of EBITDA to 2.45 times (2013 2.77 times) along with new banking facilities gives significant flexibility for further investment;
- Continued focus on growing premium managed estate, with ambitions to extend premium offering in London and into cities and market towns in the south and south east;
- Proposed 6.0% increase in final dividend to 8.07 pence, resulting in a total dividend of 15.52 pence (2013: 14.63 pence); 17th consecutive year of dividend growth; and
- Positive trading since the period end; managed house revenue in first seven weeks of current financial year up 8.5% in total, up 7.2% on like-for-like basis.
Financials
| 2014 | 2013 | % | |
| £000 | £000 | change | |
| Revenue | 210,768 | 193,677 | +8.8 |
| Adjusted operating profit(1) | 33,255 | 28,935 | +14.9 |
| Operating profit | 32,644 | 27,126 | +20.3 |
| Adjusted profit before tax(1) (2) | 27,171 | 23,224 | +17.0 |
| Profit before tax(2) | 26,560 | 21,415 | +24.0 |
| Adjusted basic earnings per share(1) (2) | 42.74p | 36.34p | +17.6 |
| Basic earnings per share(2) | 45.68p | 33.78p | +35.2 |
| Dividend per share | 15.52p | 14.63p | +6.1 |
| (interim and recommended final) | |||
| Net assets per share(3) | £7.86 | £6.94 | +13.3 |
All of the results above are from continuing operations.
(1) Reference to an “adjusted” item means that item has been adjusted to exclude exceptional items (see note 3).
(2) Where applicable the comparative figures for 2013 have been restated as a result of the adoption of the revisions to IAS 19 Employee benefits (see note 1).
(3) Net assets per share are the group’s net assets divided by the shares in issue at the period end.