- Revenues up 40% in first quarter
- Past investments paying-off
- CEO Dardis steps down as planned
Thirsty Brits continue to power sales momentum for pubs and hotels group Young & Co (YNGA:AIM), which saw a 34.9% rise in like-for-like sales in the first 13 weeks of fiscal 2023. Revenues for the period rose 39.7%.
Investors broadly welcomed the news, with the shares gaining 0.6% to £11.27 on Tuesday. The slightly muted response was probably related to caveated Board comments.
Today’s annual general meeting statement acknowledged the ‘potential impact that the inflationary environment could have on consumer sentiment and ultimately spending in our pubs’.
Despite being mindful of the risks, the board said the company is well placed to manage the current inflationary environment on its cost base.
INVESTMENTS PAYING OFF
The current financial year through March 2023 will benefit from prior investment in nine acquisitions including the recent additions of Bedford Arms (Chenies Village) and Merlins Cave (Chalfont St. Giles).
To its credit, Young’s continued to invest in its estate during the lockdowns, and it expects first benefits to emerge in the current financial year.
The company said it will continue to invest in the future growth of the business and will remain focused on running ‘premium differentiated and well invested pubs and hotels’.
According to Refinitiv and Stockopedia data, analysts expect 2023 revenues to grow 16% to £361 million and net profit to increase 6% to £36.6 million in the current financial year.
SIGNING-OFF
After six years as chief executive and 20 years with the business, Patrick Dardis formally hands over the reins today to current chief operating officer Simon Dodd.
Dodd was recruited three years ago as part of an orderly succession planning. Dardis will remain on the board until his retirement in September 2022 and be available to the company until next March.
