Young & Co.’s Brewery plc preliminary results for the 52 weeks ended 28 march 2016
Performance highlights
- Another highly successful year, with double digit growth in adjusted profit before tax reflecting premium positioning of our estate and strong operational performance;
- Revenue up 8.3% to £245.9 million and adjusted operating profit up 9.6% to £41.0 million;
- Managed houses: total revenue up 8.7%, and up 5.6% like-for-like, third consecutive year of like-for-like growth in excess of 5%; adjusted operating profit up 6.4% to £53.3 million;
- Further growth in our hotels business with accommodation sales up 11.6% at £10.4 million, reflecting further strong improvement in RevPAR;
- Ram Pub Company (tenanted business): revenues up 1.6% and up 1.0% like-for-like; operating profit up 4.7% to £4.5 million reflecting improved operating efficiency;
- Investment of £45.1 million, including eight new managed houses and upgrades to our existing estate and hotel developments;
- Investments funded largely by record cash generation; operating cash flow up 19.4% to £60.4 million and year-end net debt of £130.2 million, representing a conservative 2.2 multiple of EBITDA;
- Proposed 6.0% increase in final dividend to 9.07 pence, resulting in a total dividend of 17.45 pence (2015: 16.46 pence); 19th 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 5.3% like-for-like;
- Patrick Dardis to succeed Stephen Goodyear as Chief Executive with effect from July, as previously announced; Stephen Goodyear will remain on the Board as a Non-Executive Director.
Stephen Goodyear, Chief Executive of Young’s, commented:
“This has been yet another excellent year for Young’s, with strong like-for-like revenue performance once again, converting into a double-digit increase in underlying profits, and record cash generation which has enabled a continued high level of investment in our estate. In turn, this has translated into healthy returns to shareholders with the proposed final dividend making nineteen unbroken years of dividend growth.
Trading in the current year has started well and, in the months ahead, we will benefit from recent acquisitions including two since the year-end, and from summer events such as the Queen’s 90th birthday celebrations and the European football championships. We are well positioned at the premium end of the market, have the financial resources to invest in further growth, and are therefore well set for another successful year.
After thirteen years of doing so, this is the last time that I will be reporting on our results as Chief Executive. Young’s is a wonderful company, not least because of the energy and enthusiasm of our people throughout the business. No-one exemplifies these qualities better than Patrick Dardis, who has been an integral part of our success in recent years. I have every confidence that we will continue to thrive under his leadership.”