Despite a wet winter that dampened demand for pub dinners, Young & Co's Brewery (YNGA) managed to boost its operating profits by a fifth over the year to March. That reflects its concentration in London and the south east - where the economic recovery has been strongest - and its record £19.8m investment in its prized estate of 242 pubs and hotels.
That investment involved five acquisitions, including the King's Head in Islington, London, which helped drive revenue from Young's managed houses up nearly 10 per cent to £199m. Meanwhile, like-for-like food and drink sales grew by 8 and 6 per cent respectively, thanks to a focus on premium drinks and simple, seasonal British food.
Young's burgeoning hotel business also made gains: both room rates and occupancy levels rose, boosting revenue per available room 6 per cent to just over £52. One weak spot remains the tenanted estate, where operating profits slumped 9 per cent to less than £4m. Young plans to relaunch the operation as the Ram Pub Company this year, which it hopes will reignite growth.
Broker JPMorgan Cazenove raised its forecasts by about 3 per cent following these results. It now expects pre-tax profits of £28.3m, giving EPS of 45.1p.
| YOUNG & CO'S BREWERY (YNGA) | ||||
|---|---|---|---|---|
| ORD PRICE: | 1,050p | MARKET VALUE: | £459m* | |
| TOUCH: | 1,026-1,054p | 12-MONTH HIGH: | 1,110p | LOW: 790p |
| DIVIDEND YIELD: | 1.5% | PE RATIO: | 23 | |
| NET ASSET VALUE: | 13p* | NET DEBT: | 29% | |
| Year to 31 Mar | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2010 | 128 | 17.5 | 24.9 | 13.00 |
| 2011 | 143 | 18.1 | 28.4 | 13.26 |
| 2012 | 179 | -7.5 | -11.1 | 13.93 |
| 2013 (restated) | 194 | 21.4 | 33.8 | 14.63 |
| 2014 | 211 | 26.6 | 45.7 | 15.52 |
| % change | +9 | +24 | +35 | +6 |
Ex-div: 4 Jun Payment: 10 Jul *Reflects both 'A' and non-voting shares | ||||
