Young’s has this morning reported a 6.5% increase in like-for-like sales across its managed estate in the year to 30 March 2015, with total revenue up 7.6%.
Adjusted operating profit across its 129 Young’s pubs (including 22 hotels) and 37 Geronimo pubs, which make up its managed division, grew 11.3% to £50.1m.
Total drink sales in its managed estate increased by 7.1% and by 5.6% on a like-for-like basis. Draught lager sales grew by 5.5%. Food sales grew by 6.9% and now comprise 31.5% of its drink:food sales mix.
Its re-branded tenanted business Ram Pub Company returned to growth with revenues up 9.6% (3% like-for-like), and adjusted operating profit up 13.2% to £4.3m.
Turnover across its total estate climbed 7.7% in the year to £227m, with adjusted pre-tax profit up 17.6% to £32m and adjusted operating profit up 12.7% to £37.4m. EBITDA, before exceptional items, increased by 14.2% to £52.2m.
It reported positive trading since the period end with managed house revenue in first seven weeks of current financial year up 8.1% in total, and 5.6% on a like-for-like basis.
The company said that it had experienced 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”.
The company added 76 new hotel rooms in the period, increasing total number of rooms across the estate to 476; average room rate, occupancy and revenue per available room all increased.
The group invested £50.9m during the year (£48.5m in its managed estate), including the acquisition of eight pubs alongside upgrades to the existing estate and hotel developments.
It said it remained conservatively financed with net debt of £129m (2014: £112m) equating to 2.47 times EBITDA.
The company said it had a continued appetite for further acquisitions, alongside its existing estate and extending into southern cities and market towns that suit its premium offering.
It has sold the Seven Stars (Brighton) and exchanged contracts for the sale of the New Town (Sutton) for a total of £3.4m.
It proposed a 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.
Stephen Goodyear, chief executive, said: “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.”
