Young’s: Pub giant raises dividend as earnings jump
Pub and bar operator Young & Co’s has reported a significant jump its earnings despite surging costs.
The hospitality firm, which has 277 pubs across the UK, told markets that revenue rose 24.9 per cent from £388.8m to £485.8m in the 52 weeks ended March 31.
The nearly 200-year-old pub business said adjusted operating profit rose 24.6 per cent, from £57.3m to £71.4m, while earnings before interest, tax, depreciation and amortisation (EBITDA) rose 23.2 per cent.
Adjusted profit before tax rose 4.5 per cent to £51.6m, weighed down by National Living Wage increases of almost 10 per cent and utility costs.
Young’s raised its dividend by six per cent, resulting in a total dividend for the year of 23.06p.
Young’s in excellent shape
Chief executive Simon Dodds said the chain was in “excellent shape” and “positioned well for difficult conditions”.
“Young’s continues to be a leader for like-for-like sales in our sector and everything within our control is going to plan,” Dodds said.
The hospitality sector has been struggling with low consumer confidence and creeping taxes, although strong food and drink demand has propped up big chains so far.
Dodds said that while he “remained mindful” of the “headwinds facing consumers and the wider issues that our industry will encounter”, he was “confident our premium, well-invested, predominantly freehold pub estate will continue to deliver profitable growth.”
The integration of the City Pub Group, which added 50 pubs and more than 200 hotel rooms to the company’s portfolio, supported growth in the year.
Young’s bought the group for £162m in November 2023, although the transaction didn’t complete until March last year and it was not fully integrated into Young’s until the second half of the financial year.
The company invested £6m in upgrading the pubs it acquired from City, as well as £41m in its existing estate.