Top-end pubs group Young's has reported on a landmark year that followed the disposal of its brewing interests and the expansion of its estate with the acquisition of Geronimo at the end of 2010. While the reported numbers were sullied by a £29m property revaluation loss - the net effect of the revaluation was a £174m uplift but only losses go through the income statement - the underlying progress gave a big endorsement to the strategic shift. "It's great to have a strategy that is clear and an estate that is well-placed," said chief executive Stephen Goodyear. "We're good at managed houses in London."
Adjusted profits before tax rose 17 per cent to £21.3m, well ahead of most analysts' expectations, aided by the opening of three new pubs and very impressive like-for-like sales growth at both the Young's and Geronimo estates of 6 per cent and 9.8 per cent respectively.
Including new openings and another freehold acquisition, Young's invested £25.6m in the estate but still managed to reduce net debt by £4.5m. And while the wet April led to slow trading, the group's London focus means it stands a particularly good chance of benefiting from the Olympic and Jubilee celebrations and a strong balance sheets leaves it in a good position to expand.
Broker Peel Hunt upgraded pre-tax profits by 4 per cent to £22.6m, giving EPS of 36.1p (from £21.3m and 33.4p in 2012).
| Young & Co's Brewery (YNGA) | ||||
|---|---|---|---|---|
| ORD PRICE: | 632p | MARKET VALUE: | £282m* | |
| TOUCH: | 625-639p | 12-MONTH HIGH: | 712p | LOW: 580p |
| DIVIDEND YIELD: | 2.2% | PE RATIO: | na | |
| NET ASSET VALUE: | 659p | NET DEBT: | 37% | |
| Year to 2 Apr | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2008 | 122 | 11.6 | 16.0 | 10.8 |
| 2009 | 126 | 4.20 | 2.6 | 12.8 |
| 2010 | 128 | 18.4 | 26.0 | 13.0 |
| 2011 | 143 | 13.3 | 32.9 | 13.3 |
| 2012 | 179 | -7.5 | -11.1 | 13.9 |
| % change | +26 | - | - | +5 |
Ex-div: 6 Jun Payment: 12 Jul *Reflects both 'A' ord and non-voting shares | ||||
