Young’s sees profits dive after writing down the value of its pub chain by 11m
BREWER and pubs veteran Young & Co yesterday said that full year pre-tax profit had plummeted by 63 per cent, as cash-strapped consumers opt to drown their sorrows at home.
Profit before tax for the year ending 28 March fell to £4.2m from £11.6m the year before.
Revenues were up 3.2 per cent to £126.1m but earnings were hit after the group wrote down the value of its pubs by almost £11m.
“Market conditions remain difficult, not least as a result of rising unemployment,” said Young’s.
The group was also hit by yet another increase in excise duty – with tax on beer surging by 20 per cent in just over a year, although it declared a final dividend of 6.63p a share, two per cent higher than last time.
The increase in excise duty, along with the rising cost of malt and hops took their toll on margings.
Chief executive Stephen Goodyear said: “We have a cash-generative business, well-invested estate, great pubs in great locations, a robust balance sheet and a very strong brand. We are well positioned to meet the challenges of the year ahead.”