As Young & Co (YNGA) repeatedly flagged ahead of time, this year’s half-year results were always likely to pale against a set of comparatives that bridged the hottest UK summer on record. This helps explain why chief executive Patrick Dardis was “very pleased” by a historically meagre 1.1 per cent rise in like-for-like sales for the six months to September.
In the end, the top line was rescued by a balmy summer bank holiday and late-September sunshine, as well as a decent outing from the Redcomb estate acquired in January. The momentum has lifted since the summer, too, with total sales up 12.4 per cent in the past 13 weeks. Rugby fans watching the World Cup action from Japan clearly like a beer with breakfast, too.
However, expectations for near-term trading once again sound mixed. Half of the Redcomb estate will be closed for refurbishment in the new year. The lack of autumn rugby internationals will hit usually brisk business near Twickenham Stadium. To Mr Dardis, the timing of a December general election is also “far from perfect”, although it’s hard to imagine politics forcing too many office Christmas party cancellations.
Analysts at Panmure Gordon raised their forecasts slightly on these numbers, and now expect earnings of 74.1p a share for the year to 1 April 2020, rising to 76.5p in FY2021.
| YOUNG & CO (YNGA) | ||||
| ORD PRICE: | 1,671p | MARKET VALUE: | £729m | |
| TOUCH: | 1,645-1,680p | 12-MONTH HIGH: | 1,890p | LOW: 1,293p |
| DIVIDEND YIELD: | 1.3% | PE RATIO: | 29 | |
| NET ASSET VALUE: | 1,232p | NET DEBT*: | 26% | |
| Half-year to 30 Sep | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
| 2018 | 157 | 26.4 | 45.5 | 9.97 |
| 2019 | 168 | 24.3 | 38.2 | 10.57 |
| % change | +7 | -8 | -16 | +6 |
| Ex-div: | 21 Nov | |||
| Payment: | 06 Dec | |||
| *Includes non-voting share class | ||||
| **Excludes lease liabilities of £72.8m | ||||
