City Pub Group deal helps boost Young’s trading
Young’s, the premium operator of pubs and bedrooms, has recorded a jump in profit and revenue as punters have returned to its pubs over the past year.
For the year to 1st April 2024, the company recorded a 7.4 per cent jump in revenue to £388.8m. Revenue was up 3.4 per cent on a like-for-like basis, and the group also benefitted from the acquisition of The City Pub Group, which was completed on 4th March.
The company said the acquisition added £7.2m of revenue and earnings before interest, tax, deprecation and amortisation (EBITDA) of £1.7m during the four weeks of ownership during the period.
Overall, the group reported adjusted EBITDA growth of 7.8 per cent to £92.2m and adjusted operating profit growth of 9.4 per cent to £57.3m.
The group recommended a final dividend of 10.88p per share, giving a total dividend for the year of 21.8p, up six per cent.
In addition to The City Pub Group deal, Young’s said it invested £84.5m across its pub and hotel estate during the year. It spent £36.5m on eight individual acquisitions and £48m on reinvigorating existing pubs.
Simon Dodd, chief executive of Young’s, commented: “In a landmark year for Young’s, we have reported another excellent financial performance with industry leading profitability.
“Our investment for future growth didn’t stop with The City Pub Group acquisition, during the period we acquired eight great pubs, made further investments in our existing estate, and upgraded our technology to enhance the customer experience and realise productivity gains,” he added.
The boss continued:“Looking ahead, we face some challenges, but there is plenty for us to be excited about this year. We are heading into a feast of summer sporting events, starting with EURO 24, Wimbledon and the Olympics. Then we look forward to making the most from the return of the Autumn rugby internationals which provides a fantastic opportunity given our rugby heritage.”