Young’s has reported 10.3% growth in pre-tax profits at £20.3m with revenue growth of 8.3% in what it called a “very strong performance” for the 26 weeks to 28 September 2016.
Its managed estate saw like for like revenue growth of 5.5% for the fourth consecutive year and for the six weeks since the period end total sales in the managed estate are up 13% and 9.6% on a like for like basis.
While Young’s manged houses showed strong sales and like-for-like growth, Geronimo was impacted the loss of the Tin Goose (Heathrow Terminal 1),the impact of changes in airline schedules on its other two Heathrow pubs and a 13 week closure of the Clarence (Whitehall) during its redevelopment. As a result total sales grew only modestly by 0.6%, and declined by 1.4% on a like-for-like basis.
Total revenue hit £126.3m and the group invested £21.8m during the six month period and a total of £39.2m over the past two years acquiring 15 pubs.
The group has said acquisitions remain a key part of its strategy with five sites coming on line this year and a further two due to open in H2.
Young’s tenanted division, The Ram Pub Company, maintained last year’s sales and profits with sales and profits are up 14.0% and 21.1% respectively over a two year period.
Stephen Goodyear, chief executive said: “We are very pleased to report another six months of excellent trading, with particularly strong growth from our managed estate despite tough comparatives and more variable weather over the summer months. Our well-invested and well-located pubs, premium product range and the energy and dedication of our teams are crucial to this success. In addition we continue to see the benefit from a number of newly refurbished pubs providing excellent contributions to the success of the first half.
He said the second half of the year will benefit from a full contribution from five recent acquisitions including the Canonbury in Islington and the Grocer in Spitalfields Market. There are a further two scheduled new openings - the Leman Street Tavern (Aldgate) and the Guard House (Woolwich) - and the re-opening of a number of our London pubs currently under development.
“Momentum has continued into the autumn. Many of our pubs, in south west London in particular, have a deep rooted rugby heritage and have thrown themselves into the World Cup. Despite England’s early demise, they have generated good business from both local and visiting rugby fans alike,” he said.
Young’s said its managed estate, which comprises 131 Young’s pubs (including 22 hotels) and 38 Geronimo pubs, performed well over the period with revenue up 8.7% in total and up 5.5% on a like-for-like basis. Adjusted operating profit was up 8.1%. Young’s invested £20.8m in total in this division, with £14.1m on Young’s pubs, £1.9m on Young’s hotels and £4.8m on Geronimo pubs. This investment comprised £8m on new pubs and developing recently acquired ones and £12.8m on its core estate.
Three new developments started in the previous financial year, the Bull and Gate (Kentish Town), Trafalgar Arms (Tooting) and the Nine Elms Tavern, were opened in the period. In addition the group acquired the Canonbury (Islington) and the Grocer (Spitalfields Market), two pubs that strengthen Young’s north and east London presence.
Major developments were undertaken at the Dirty Dicks (Bishopsgate), Brewers’ Inn (Wandsworth), Castle (Islington), Clarence (Whitehall), Crown Tavern (Lee), Lamb Inn (Hindon), Penny Black (Leatherhead), Wood House (Dulwich) and, most noteworthy, at the Bull (Streatham). Like the Castle (Tooting) in the previous year, the Bull has undergone a complete makeover and its popularity, sales and profitability have in turn been transformed.
Young’s managed houses were up = 11.4% in total revenue and 7.7% on a like-for-like basis. Its smaller Geronimo business benefited from some new pubs, but also reflected the loss of the Tin Goose (Heathrow Terminal 1) which closed in October 2014, the impact of changes in airline schedules on our other two Heathrow pubs and a 13 week closure of the Clarence (Whitehall) during its extensive redevelopment. As a result total sales grew only modestly by 0.6%, and declined by 1.4% on a like-for-like basis.
Food sales outperformed drinks sales up 8.7% in total and 7.5% on a like-for-like basis.
The period included the introduction of its Burger Shack concept, which it has begun to roll-out and is preparing to open at a sixth site, in Walton-on-Thames.
