Young’s has reported preliminary results for the 52 weeks ended 30 March 2015 with revenue up 7.7%, operating profit up 27.3%, and positive trading since the year end.
Stephen Goodyear, Chief Executive of Young’s, commented:
“Young’s has had another extremely good year, with further robust profit growth driven by increased revenue and strong operational management, reaping the rewards of our consistently high levels of investment in our estate over many years.
“We have added eight pubs, 76 new hotel rooms, invested significantly in our estate, and we remain actively in the market for further acquisitions – of pubs and hotels that complement our premium positioning either where we currently trade or in market towns and cities in the south of England. We have ample financial resources to continue to pursue this proven growth strategy.
“Trading in the current year has started promisingly, with managed house revenue in the first seven weeks up 8.1% in total and 5.6% like-for-like. We have a number of new pubs to come on stream this year, and we look forward to this autumn’s Rugby World Cup drawing people into Young’s pubs in south west London and beyond. Whilst the strength of last year’s performance sets the bar ever higher, we are confident that we can make further progress.”
Highlights
- A further year of strong performance with growth across Young’s, Geronimo and The Ram Pub Company, reflecting the quality and appeal of our well invested estate of premium pubs and hotels;
- Managed houses: total revenue up 7.6%, and up 6.5% like-for-like – representing fourth year of consistently high like-for-like growth; adjusted operating profit up 11.3% to £50.1 million;
- Further growth in hotels with 76 new hotel rooms added, increasing total number of rooms across the estate to 476; average room rate, occupancy and revenue per available room all increased;
- Ram Pub Company (re-branded tenanted business): returned to growth with revenues up 9.6% (3.0% like-for-like), and adjusted operating profit up 13.2% to £4.3 million;
- Investment of £50.9 million, including acquisition of eight pubs alongside upgrades to the existing estate and hotel developments;
- Group remains conservatively financed with net debt of £129.0 million (2014: £112.0 million) equating to 2.47 times EBITDA;
- Continued appetite for further acquisitions, alongside our existing estate and extending into southern cities and market towns that suit our premium offering;
- Proposed 6.1% increase in final dividend to 8.56 pence, resulting in a total dividend of 16.46 pence (2014: 15.52 pence); 18th consecutive year of dividend growth;
- Positive trading since the period end; managed house revenue in first seven weeks of current financial year up 8.1% in total, and 5.6% like-for-like.
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 notes 3 and 4).
(2) Net assets per share are the group’s net assets divided by the shares in issue at the period end