Young’s hopes for repeat of bumper year with Rugby World Cup on horizon
Pub chain Young’s has continued to weather the economic storm posting a hike in revenues for the year thanks to Royal celebrations and an exceptionally hot summer last year.
The 223 strong chain, which operates largely in London and the South-East, said that revenues were up 19.4 per to £368.9m compared to £309.m in the same period last year as a return to normal life post pandemic helped boost sales.
Drinkers heading to their local to watch the Fifa World Cup also aided the group’s adjusted profit before tax which was up 8.1 per cent to £45.2m, it was also strengthened by a slew of acquisitions across London and Sussex.
However, the group said operating margin was down 14.2 per cent compared to 16.2 per cent last year as at the time it was “heavily bolstered” by government Covid-19 support through business rate reductions, lower VAT rates and grants.
“Our business remains highly profitable and over the coming months, as inflation is predicted to soften, we are confident that margins will improve,” chief Simon Dodd said.
Despite a slow down in consumer spending due to an increase in living costs, Young’s said it is continuing to trade well with like-for-like sales for the last seven weeks up by 4.8 per cent – it is also expecting to be bolstered by the Rugby World Cup which takes place later this year.
“We were pleased to see a further increase in people visiting our City and Central London pubs alongside positive Christmas trading. Our performance last year was even more impressive given the cost headwinds facing the industry and we are encouraged that some of these pressures are starting to ease,” Dodd added.