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Wed 19th Jun 2024 - Young’s lfl sales up 2.4% in last nine weeks following record pre-tax profit of £49.4m |
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Young’s lfl sales up 2.4% in last nine weeks following record pre-tax profit of £49.4m, strong contribution from former City Pub Group pubs: Young’s has said its like-for-like sales have risen 2.4% in last nine weeks after recording a record pre-tax profit of £49.4m in the year to 1 April 2024. “Since the period end, trading has been positive, with total sales for the last nine weeks up 24.4% with the inclusion of City Pub Group, and like-for-like sales up by 2.4%,” said chief executive Simon Dodd. “This is against the backdrop of last year's excellent late spring and early summer weather which delivered a strong comparative period and little in the way of reasonable weather so far this year. It is also expected that the net debt to adjusted Ebitda ratio will fall back to more historical levels by the end of FY25 once a full year of the additional Ebitda from the City Pub Group acquisition is included. We are making good progress integrating the brilliant teams from City Pubs, work that has already begun in earnest. I look forward to getting to know all the teams better and working with them to enhance the business over the coming years. Looking ahead, there is plenty for us to be excited about. This summer we have a festival of sport, starting with Euro 24, Wimbledon and the Olympics, followed by the return of the autumn rugby internationals which provides a fantastic opportunity given our rugby heritage. The recent investments, acquisitions and City Pub Group transaction provide incredible long-term growth potential. We remain focused on maintaining our premium position within the pub sector and are confident in our winning strategy of operating premium, individual and well-invested managed pubs and bedrooms, crucial to our continued success and the delivery of achieving superior returns for our loyal shareholders.” It comes after the group reported adjusted profit before tax growth of 9.3% to a record £49.4m for the period, “despite the impact of continued cost inflation”. Total revenue for the year, on a comparable 52-week basis, was up 7.4% to £388.8m (2022: £368.9m), and on a like-for like 52-week basis was up 3.4% against strong results in 2023, in line with historical trends. Adjusted Ebitda was up 7.8% to £92.2m, with managed house adjusted Ebitda for the period up 7.1% to £112.7m. The acquired former City Pub Group pubs contributed £7.2m revenue and Ebitda of £1.7 million for the four-weeks of ownership in the period. It said a strong balance sheet and cash generation supported £84.5m of investment in the Young’s estate, including £36.5 on eight individual acquisitions and £48m invested in existing pubs. A final dividend was announced of 10.88 pence, resulting in a total dividend for the year of 21.76 pence, up 6.0%, “reflecting our strong profit performance and positive outlook”. Dodd said: “In a landmark year for Young’s, we have reported another excellent financial performance with industry leading profitability. This is once again testament to the excellent work and energy of our teams and our proven strategy of operating premium, individual, differentiated and well-invested pubs and bedrooms. Our investment for future growth didn't stop with The City Pub Group acquisition, during the period we acquired eight great pubs, made further investments in our existing estate, and upgraded our technology to enhance the customer experience and realise productivity gains. Our belief in Young’s long-term growth potential remains as good as ever, and we are confident of our performance in the year ahead.” Total room revenue on a comparable 52-week basis was up 10.2% to £23.7m. On a like-for-like basis over 52 weeks, room revenue was up by 7.7%, while like-for-like occupancy increased by 0.5% points and average room rates grew by £3.89. In total, revenue per available room was up £7.00 to £78.40. “Accommodation has become a major revenue driver for Young’s, and by adding City Pubs to our estate, we now have 1,066 rooms, with a presence in new geographical areas including Norwich and Cambridge, affluent student towns where we have not previously played,” Dodd said. “We also plan to launch a new loyalty programme for our rooms, to further strengthen our relationship with our guests. Our food sales continue to grow, up 5.9% for the comparable 52 weeks and 1.5% on a like-for-like 52-week basis. Our executive chef team continues to support our pubs, helping to mitigate food inflation, delivery and distribution costs as far as possible by taking a proactive approach to using seasonal and locally sourced British ingredients. We have continued to see this pressure ease, with recent food costs flat versus this time last year and, because we are flexible with our menus based on location and local tastes, we have managed to further reduce costs.” At 1 April 2024, the group had cash in bank of £16.9m and committed borrowing facilities of £335m, and in addition to these, it maintains a £10m overdraft facility with HSBC. Net debt including lease liabilities rose to £359.6m (2023: £165.2m) as a result of the additional funding obtained in relation to the acquisition of the City Pub Group. Total adjusting items were £28.7m in the period (2023: £9m), which relates to a small net downward movement in property revaluation of £12.8mi, and purchase costs relating to the acquisition of the City Pub Group totalling £6.2m. Purchase costs relating to other individual acquisitions within the period were £2.2m, and an impairment charge of £5.5m related to both goodwill and right-of-use assets, £1.3m related to the disposal of one freehold property and three leasehold properties during the period, with the leasehold properties signing new replacement leases, and the remaining £0.7m is tenant compensation and restructuring costs. Including the acquisition of the City Pub Group, Young’s finished the period with a total of 288 pubs (2023: 227), including 56 pubs, providing a total of 1,066 bedrooms. Young’s features in the Propel Turnover & Profits Blue Book, the latest edition of which was sent to Premium Club members on Friday (14 June) and features 926 companies. Its profit of £49.9m for the year to 1 April 2024 is the 17th highest in the database. The Blue Book ranks companies by turnover, profit and profit conversion, listing directors’ earnings for the past five years. Companies can now have an unlimited number of people receive access to Propel Premium for a year for £995 plus VAT – whether they are an operator or a supplier. The single subscription rate is £495 plus VAT for operators and £595 plus VAT for suppliers. Email kai.kirkman@propelinfo.com to upgrade your subscription.
Next Who’s Who of UK Hospitality to feature 58 updated entries and 11 new companies, released on Friday: The next Who’s Who of UK Hospitality will feature 58 updated entries and 11 new companies when it is released to Premium Club members on Friday (21 June), at midday. This month’s edition includes 876 companies and more than 236,000 words of content. The companies, listed in alphabetical order, will have their most recent results reported as well as broader information around Ebitda, plans and trading style available. The database merges Companies House information, interviews and other public information to provide an easy to reference and exhaustive guide to the sector. Premium Club members also receive access to five other databases: the Multi-Site Database, produced in association with Virgate; the New Openings Database; the Turnover & Profits Blue Book; the UK Food and Beverage Franchisor Database and the UK Food and Beverage Franchisee Database. All Premium Clubs members will be offered a 20% discount on tickets to Propel paid-for events including Social Media for Profit (18 July), the Talent and Training Conference (1 October) and Restaurant Marketer and Innovator (two days in January 2025). Operators that are Premium Club members are also able to send up to four members of staff to each of our four Multi-Club Conferences for free. Premium Club members receive their daily Propel Info newsletter 11 hours earlier than standard subscribers, at 7pm the evening before. They also receive videos of presentations at eight Propel conference events two weeks after they are held. This represents around 100 videos of industry insight over the course of the year. Premium Club members will be sent a dedicated monthly newsletter that will highlight key updates in the sector and direct subscribers to all the vital content their membership offers. Premium Club members also receive exclusive opinion columns every Friday at 5pm, which include the thoughts of Propel group editor Mark Wingett and a host of industry leaders from across the sector. A Premium Club subscription costs an annual sum of £495 plus VAT for operators and £595 plus VAT for suppliers. Companies can now have an unlimited number of people receive access to Premium Club for a year for £995 plus VAT – whether they are an operator or supplier. Email kai.kirkman@propelinfo.com today to sign up.
UK inflation falls to 2%: UK inflation fell to 2% in the year to May, official figures show. It marks a fall from 2.3% in April, according to the Office for National Statistics, and means that inflation has fallen back to the Bank of England’s 2% target for the first time in nearly three years, reports the BBC. The Consumer Price Index, which tracks how the price of a typical basket of items changes over time, rose by 2% in the 12 months to May 2024, which is down from the 2.3% in the 12 months to April. It means prices are still rising but at a slower rate than previously. According to the ONS, the largest downward contribution to the monthly change in annual rates came from food. Last month, falling gas and electricity prices were cited as a big part of the reason behind the sharp fall in April's inflation number. Core inflation, which excludes energy, food, alcohol and tobacco, rose by 3.5% in the 12 months to May 2024, which is down from 3.9% in April. Labour’s shadow chancellor Rachel Reeves welcomed the news but added that she is not going to say, “everything is fine”. For many people, the cost-of-living crisis is still acute and very real, she said.
Better burger brand Amigos Burgers & Shakes secures five-store deal for Birmingham: Better burger brand Amigos Burgers & Shakes has secured a deal to open five new branches in Birmingham. The first will open at 326-328 Ladypool Road in the Balsall Heath area of the city, which will be the brand’s Birmingham debut. The four other locations have yet to be revealed. A spokesman for Amigos said the Birmingham restaurants will “help to create hundreds of jobs in the local area” and that they’ve seen an increased demand from franchisees. “We’re incredibly proud to finally be able to bring Amigos to Birmingham as we hope to replicate the tremendous success we’ve had in London,” they added. “Birmingham has a great food scene, and we can’t wait for burger lovers across the city to discover what has made our brand so popular.” Amigos was launched in Acton, west London, in 2011 by Waqas Siddique and Kasim Akhter and has since expanded to 20 sites across the capital. Having first expanded with a second store in Shepherd’s Bush in 2015, their first franchise store followed in 2017, in east London. The brand has previously said it is aiming for national expansion and has targeted building a 100-store estate over the next five years. It also this month held its first Amigos Cup community football tournament, in partnership with the Elite London Academy (ELA), which saw seven teams of 10 young players each took to the field at London’s Alec Reed Academy. “We couldn’t be happier with how the first-ever Amigos Cup went,” the spokesman added. “We can confirm that we will be hosting the Amigos London Cup in the future, creating a legacy of community engagement and support. This is just the beginning of a journey that promises to bring joy, opportunity, and delicious food to even more young athletes and their families.”
Nimax Theatres reports ‘successful year’ following ‘exceptional’ first half trading and strong levels of advanced bookings: Nimax Theatres – owners and operators of West End venues including the Palace, Lyric, Apollo, Garrick, Vaudeville and Duchess – has reported a “successful year” following “exceptional” first half trading and strong levels of advanced bookings. In its accounts for the year to 1 October 2023, the company reported a rise in turnover from £31,942,755 in 2022 to £32,842,048. Its pre-tax profit dropped from £8,557,097 to £7,534,970, with exceptional items including a £757,501 loss on theatre trading investments. No government grants were received (2022: £335,595) and no dividends were paid (2022: nil). Shareholder funds at year-end were £49,984,897, up from £43,994,766 in 2022. “Much of the performance for the year was due to the continuation of long running shows,” said director Lounica Burns. “Three of the theatres had shows which played for the whole of the year: the long running shows The Play That Goes Wrong and Harry Potter and the Cursed Child played at the Duchess and Palace theatres respectively and Six completed a second year at the Vaudeville. All three productions are expected to continue playing in 2023/24. Overall, the other theatres also enjoyed a successful year, spearheaded by exceptional trading in the first half of the year in which the Apollo hosted Upstart Crow and Derren Brown. The Garrick theatre hosted a number of well received shows including Orlando, Bonnie & Clyde, Great Expectations and The Crown Jewels. The Lyric saw Get Up! Stand Up! complete its successful run, to be replaced by 2:22 A Ghost Story. The latter enjoyed much success and subsequently transferred to the Apollo where it played for most of the second half of the year. The one notable disappointment in an overwhelmingly successful programme of shows was Aspects of Love at the Lyric. Unfortunately, the show failed to meet the high expectations and did not generate sufficient interest to maintain the show through its booking period. As a result the show ended early and the remaining period was filled by various comedy and entertainment shows. Additional concert and family programmes further helped to utilise capacity at the theatres. Various concerts played during the year and included the Matt Forde and Tim Minchin series of shows. Making up the company’s audience development programme, Blippi the Musical, I believe in Unicorns, Potted Panto, The Smeds and the Smoos and Horrible Histories played as part of the children and family entertainment aimed at the daytime and school and festive holiday periods. The company continued to invest in its theatres and, despite a full programme of shows playing at all the venues, managed to deliver a programme of maintenance and replacement during the year. Good overall demand for the Nimax shows has helped to underpin strong levels of advance bookings and cash reserves during the year.”
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