YOUNG & CO.’S BREWERY, P.L.C.
INTERIM RESULTS FOR THE 26 WEEKS ENDED 26 SEPTEMBER 2022
ENCOURAGING RESULTS AS OUR TRADING MOMENTUM CONTINUED THROUGHOUT THE PERIOD REFLECTING A WELCOME RETURN TO A NORMAL PUB ENVIRONMENT
| 2022 | 2021 | % | |
| £m | £m | change | |
| Revenue1 | 186.5 | 149.6 | +24.7 |
| Adjusted operating profit13 | 29.0 | 27.1 | +7.0 |
| Adjusted profit before tax13 | 25.0 | 21.8 | +14.7 |
| Adjusted EBITDA1 3 | 45.0 | 42.7 | +5.4 |
| Net debt | 168.1 | 140.3 | -19.8 |
| Net debt to EBITDA1 2 | 2.0x | 3.6x | -1.6x |
| Operating profit1 | 27.9 | 27.5 | +1.5 |
| Profit before tax1 | 23.9 | 22.2 | +7.7 |
| Net cash generated from operations | 48.5 | 71.4 | -32.1 |
| Adjusted basic earnings per share13 | 34.54p | 28.22p | +22.4 |
| Basic earnings per share1 | 32.66p | 17.96p | +81.8 |
| Interim dividend per share | 10.26p | 8.55p | +20.0 |
| Net assets per share | £12.11 | £11.16 | +8.5 |
1 The prior period results exclude trading from 56 sites which formed a majority of the Ram Pub Company segment (sold in August 2021) and were disclosed in last period’s interim results as discontinued operations (see note 5).
2 Net debt (including lease liabilities) to EBITDA has been calculated based on the last 12 months’ actual adjusted EBITDA of £84.8 million (see note 2 for adjusted EBITDA and note 9 for net debt).
3 Reference to an “adjusted” item means that item has been adjusted to exclude non-underlying items (see note 2 for adjusting items and note 7 for earnings per share).
PERFORMANCE HIGHLIGHTS
· Total revenue for the period was £186.5 million, with an adjusted EBITDA of £45.0 million; managed house EBITDA for the period was £55.5 million up £3.3 million against last year
· Like-for-like revenue was ahead of same period in 2019 by 6.2%, and up by 20.4% against last year
· Adjusted operating profit up 7.0% to £29.0 million, delivering a margin of 15.5%, down from last year’s 18.1% which benefited significantly from the reduced 5% VAT rate (£8.2 million) and lower utility costs (£1.9 million on a like-for-like basis)
· Investment of £28.7 million in the period, including four freehold acquisitions and £14.5 million invested in our existing estate, with a further two acquisitions since the end of the period
· Healthy cash generation reduced the year-end net debt by £5.7 million to £168.1 million
· Interim dividend of 10.26 pence per share, an increase of 20.0% (1.71 pence) against the last interim dividend
· Since the period end, managed house revenue for the last 13 weeks was ahead of last year by 6.6%; on a like-for-like basis up 2.0% on last year and ahead of 2019 comparatives by 5.5%
· A balance sheet that supports our strategy, with the financial capacity for continued capital investment
Simon Dodd, Chief Executive of Young’s, commented:
“I am very pleased with the performance of the business and the hard work of our teams in the first half of the year. This has been the first time in three years we have been able to report on a period without any covid related trading restrictions, with the business returning to normality.
Recent trading has been robust despite all the economic uncertainty, and we continue to see our pubs in Central London and the City bounce back as workers and tourists return, like-for-like sales since the end of the period were up against last year by 22.0% and 11.1% respectively.
We have continued to reinvest the funds generated by the sale last year of our tenanted estate, with the welcome addition of four fantastic freehold pubs combined with the two recent acquisitions, the Carpenters Arms (Tonbridge) and the Griffin Inn (Fletching), both wonderful freehold pubs with rooms.
Bookings are already strong for our first full trading Christmas in three years, which follows closely after the football World Cup. Although we are conscious of the current macroeconomic conditions, we have fixed contracts for both drinks and utilities, and, whilst not immune to the external cost pressures across our supply chain, we are taking steps to mitigate as far as possible.
Our strategy of operating premium, individual and well-invested managed pubs is unchanged, and we are confident that it will continue to deliver superior returns for our shareholders.”
For further information, please contact:
Young & Co.’s Brewery, P.L.C. 020 8875 7000
Simon Dodd, Chief Executive
Michael Owen, Chief Financial Officer
MHP Communications 020 3128 8742 / 8147
Tim Rowntree/Robert Collett-Creedy