Young’s pubs score World Cup trading boost
Young’s has seen a surge in trading as a result of England’s success so far in the World Cup, the pub operator said.
The FTSE-listed hospitality firm said its nine per cent jump in revenue in the last 14 weeks was in part driven by the initial stages of the World Cup, where England has progressed for a quarter-final clash with Norway.
Pubs have endured challenging conditions in recent months – facing rising business rates and employment costs – but had been hoping for a summer pick-up as Brits follow the Three Lions from their local.
Simon Dodd, chief executive of Young’s, said on Tuesday: “Our premium, well-invested and differentiated pubs and bedrooms continue to deliver, with Young’s pubs performing strongly in the first quarter.
“This was supported by favourable weather, a busy summer of sport, with England’s success in the World Cup so far a welcome boost.”
Young’s defies ‘challenging’ conditions
Pubs across the country served six million pints – 1.25m more than on an average Sunday night – during England’s round-of-16 victory against Mexico, according to the British Beer and Pub Association (BBPA).
Greene King said it took 5,300 bookings for the game – more than for England’s round-of-32 match versus Ghana, despite the later kick-off time.
Sales of cider and lager jumped by 127 and 76 per cent respectively on Monday morning across the pubs managed by beer firm Heineken UK.
The boss of Young’s said that the start of the Wimbledon Championships and initial contributions from its recently-acquired Cubbitt House estate were also helping Young’s to defy a “challenging” backdrop.
Young’s switches to main FTSE market
The company snapped up the string of high-end London pubs for £30m earlier this year, and told Morning Wire in May that it wants to buy up dozens more new locations.
Dodd also said on Tuesday that his pubs benefited from “exceptional trading” over the late May bank holiday weekend, particularly at its locations with gardens or at riversides.
Pub landlords have criticised the government for its so-called “nice pub” tax, by which a hospitality firm’s business rates bill now takes into account whether they are in “attractive locations” or offer playgrounds or large car parks.
Young’s saw its profit before tax more-than double to £41m in the year to the end of March, as revenue inched up by 4.6 per cent to £508m.
The pub firm is in the process of switching from London’s challenger AIM stock exchange to its main market, which it hopes will allow it to attract a host of new institutional investors and boost its share price.