Young's backs Living Wage

The Rugby World Cup also had the anticipated positive effect on trade, despite the early exit of the hosts. A high concentration of pubs in south west London - several of which are near Twickenham - has helped boost like-for-like sales by 10 per cent since the period-end.

The company's enthusiastic reception to the government's National Living Wage was perhaps more surprising. Chief executive Steve Goodyear is keen to "move with the times, and make sure the pub and hotels businesses offer attractive careers". He says £2m of extra costs will be offset by efficiencies rather than pricier pints. Compare this with the caustic reaction to the increase from Tim Martin, the chairman of fellow pubco JD Wetherspoon (JDW). The explanation is perhaps that Young's operating margin - 18 per cent in these figures - leaves far more room for manoeuvre.

Young's balance sheet is also strong for a pub company, and net debt fell in the period despite the new investments. A rise in corporate bond yields also reduced the retirement deficit by a third to £8.6m.

Analysts at Panmure Gordon upgraded their full-year pre-tax profit and EPS forecasts to £34.4m and 56.3p, respectively (from £32m and 50.8p in FY2015).