Pub operator and brewer, Young’s has posted annual results for the year ending 3 April 2017, showing another year of strong results.
The company reported managed like-for-like sales rose by 4.7%, with revenue up by 7% and operating profit up by 9.8% to £58.4m. Total company sales rose by 9.4% to £268.9m, and adjusted operating profit rose by 11.9% to £46.1m. Profit before tax was up 12.8% to £37m.
The group's tenanted arm, Ram Pub Company saw revenues rise by 7.1%, up 3.2% in like-for-likes, while operating profit was up by 11.1%. There was total investment of £38.2m, in acquisitions, transformational developments and estate upgrades.
Young's estate now stands at 252 pubs, having acquired four pubs during the period, sold one and two leases expired. Its value has increased again, now to £689.1m (2016: £649.8m).
Chief executive Patrick Dardis (pictured) said, “I am delighted with these results. Yet again we have outperformed the sector, and made progress on all key measures, with revenue, profit, margin, cash generation, investment, the value of our pub estate and shareholder returns all strongly ahead.
'This is the reward for our consistent strategy of running high quality, differentiated, individual and well invested pubs, at the heart of the communities in which they sit, staffed by well-trained and motivated teams of people.
'The pub is now the most popular destination for eating out in the evening, and recent trading has been strong, with our ranges of craft beer, our ‘Cocktail Collective’, and our brunch and Sunday lunch offerings all helping drive performance.'
The managed brands
The two managed house brands, Young’s and Geronimo, both delivered strong performances. Total managed sales were up 7.0% on a 52-week basis. This year, Young’s managed houses delivered like-for-like sales growth of 5.0% and we are confident we can continue to outperform the sector with more opportunities to drive further growth.
The turnaround in Geronimo's performance went from a decline of 1% in sales on a like-for-like basis last year, to 3.8% like-for-like sales growth this year. This achievement has been realised by focusing on the individuality of each pub, restoring the menu to the Best of British and re-energising the service teams. Food sales were up 7.4% in total and up 4.9% on a like-for-like basis.
The standout success story within the food offering has been the Ultimate Sunday Lunch. Even the Mayfair institution, Guinea Grill, which has been serving ales since 1423, is opening on Sundays again to meet this growing demand.
Having increased the roll-out of the firm's innovative and successful Burger Shack concept, including its little sister, ‘Shack-in-a-Box’, which can pop-up to maximise sunny days in smaller gardens, Young's now has 25 ‘shacks’, an increase of 13 over the year.
Investment
This year the group invested £35.7m, spread over acquisitions, transformational developments and day-to-day maintenance to preserve the quality to which our customers have grown accustomed.
Young's acquired three freehold properties and opened one leasehold during the year, spending £12m in the process. The Blue Boar at the gateway to the Cotswolds in Chipping Norton reopened after a major refurbishment in October. The Woolpack in Bermondsey transferred from the Ram Pub Company in October, having spent six months trading under the previous tenant following its purchase at the start of the financial year. The Riverstation, anchored on Bristol’s harbourside, landed in November. Finally, the Station Tavern in Cambridge signalled the firm's broadening appetite for destination market towns.
The group invested £23.7m (2016: £25.6m) in refurbishing existing estate. On the total internal investments it made in the prior year, the firm haa delivered a 25% return on capital in the current year.
