Young's sees revenue and profits soar

The company’s preliminary results for the 52 weeks ended 31 March 2014 revealed that revenue increased by 8.8 per cent to £210.8m, while pre-tax profits rose 17 per cent to £27.2 million.

Managed house revenue increased 9.6 per cent to £199.0m, with managed house operating profit up 13.7 per cent.

Food outperforms drink​

Young's said that food once again outperformed drink last year - with like-for-like food sales up 7.6 per cent compared to a 6.3 per cent uplift in like-for-like drinks sales.

The company’s hotel business also showed strong growth, with room rates up £0.96, occupancy up 2.9 percentage points, resulting in a £2.76 increase in RevPAR to £52.02.

“This was another excellent year, with strong revenue and profit growth, particularly when compared with last year which included the Olympics,” said Young’s chief executive Stephen Goodyear.

“Our focus on London and the south east is a real advantage, as is our very clear positioning at the premium end of the market.

“The improving economic picture is increasing customer confidence which we are seeing in both footfall and spending patterns, with customers trading up in both drink and food.”

Investments​

Young’s invested £33.6m in its estate last year, with £19.8m used to improve and update existing pubs. The company also acquired two new managed pubs – the Weyside in Guildford and the King’s Head theatre pub in Islington. It also acquired new tenancies at the New Inn in Ealing, Royal Oak

The company said it has also ‘invested heavily’ in its hotel offering and plans to open  46 additional hotel rooms in the first half of 2014, bringing its total room count to 443.

“Such is the strength of our cash flow that we have been able to invest £33.6 million during the year, whilst reducing our debt. As a result, there is today real depth and richness to our estate, and we remain ambitious to expand and broaden it further,” said Goodyear.

Ram Pub Company​

Young’s also revealed plans to re-brand its tenanted estate, which currently represents 5.4 per cent of the group’s revenue, as the Ram Pub Company.

“As previously reported our tenanted estate has gone through a period of consolidation. As a result we have a tenanted business of 79 pubs, based mainly in London and the south east,” the company said.

“The next stage of our strategic plan is already underway and by the end of the summer our tenanted operation will be re-launched as the Ram Pub Company, with its own unique identity.”