Most pub groups are positioning themselves towards the so-called premium end of the market what with the craft beer revolution and increasing emphasis on quality food. And it seems Patrick Dardis, who only recently took over as chief executive at Young & Co (YNGA) but has been with the group for 14 years, hasn't let its high standards slip. A new brunch offering, which will be rolled out across the estate after a successful trial, alongside its new burger offering, helped total food sales rise nearly 7 per cent in its managed houses division, which delivers the vast majority of its revenue.
Operating cash flow was up 5.8 per cent, which meant the group was able to pay down some of its debt as well as invest £20.4m in the business and commit to a 20th consecutive half-year dividend increase. Mr Dardis said a recent report by the board considering how the business might look in 2022 planned for capital expenditure of around £40m on average per year, which is the same as this financial year's £40m estimate. This means costs elsewhere might need trimming in light of "exceptionally high" business rate increases, which added £1.8m of costs this financial year but £5m a year thereafter.
Analysts at Panmure Gordon predict pre-tax profit of £39.2m for the year to March 2017, leading to EPS of 64.1p, compared with £35.4m and 57.3p in FY2016.
| YOUNG & CO'S (YNGA) | ||||
|---|---|---|---|---|
| ORD PRICE: | 1,330p | MARKET VALUE: | £590m | |
| TOUCH: | 1,315-1,344p | 12-MONTH HIGH: | 1,345p | LOW: 1,075p |
| DIVIDEND YIELD: | 1.4% | PE RATIO: | 22 | |
| NET ASSET VALUE: | 930p* | NET DEBT: | 28% | |
| Half-yearto 26 Sep | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2015 | 126 | 19.8 | 32.8 | 8.38 |
| 2016 | 136 | 22.1 | 38.4 | 8.88 |
| % change | +8 | +12 | +17 | +6 |
Ex-div: 24 Nov Payment: 9 Dec *Includes both 'A' and 'B' shares | ||||
