- Adjusted pre-tax profit up 9.3% to £49.4 million
- Full year revenue up 5.4% to £388.8 million
- Acquisition of City Pub group completed on 4 March
Pubs and hotels group Young & Co (YNGA:AIM) reported a 9.3% increase in adjusted pre-tax profit to a record £49.4 million for the year ending 1 April 2024, despite continued cost inflation and consumer uncertainty.
The completed acquisition of the City Pub group on 4 March this year contributed £7.3 million revenue and EBITDA (earnings before interest, tax, depreciation, and amortisation) of £1.7 million for the four weeks of ownership.
However, investors reacted negatively to the news with the shares losing over 1% in morning trading perhaps slightly discouraged by Young’s chief executive Simon Dodd saying the pubs and hotels group may face some challenges this year.
The company highlighted its strong balance sheet and cash generation which supported £84.5 million of investment in the Young’s estate, including £36.5 million on eight individual acquisitions and £48 million invested in existing pubs like the Defector’s Weld in Shepherd’s Bush, west London, Guinea Grill in Mayfair, central London and the Bedford Arms in Chenies Village, Hertfordshire.
SUMMER OF SPORT
On the plus side, Dodd said there is a lot to be excited about this year, namely a feast of summer sporting events like Euro 2024, Wimbledon, Olympics and the return of Autumn rugby internationals.
Since the period end, trading has been positive with total sales for the last nine weeks up 24.4% with the inclusion of City Pub group and like-for-like sales up by 2.4%.
Young’s board recommended a final dividend of 10.88p, taking the full year payout 6% higher to 21.76p ‘reflecting our strong profit performance and positive outlook,’ said the company.
