REG - Young & Co's Brew. - Interim Results
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RNS Number : 3298H Young & Co's Brewery PLC 13 November 2025
YOUNG & CO.'S BREWERY, P.L.C.
INTERIM RESULTS FOR THE 26 WEEKS ENDED 29 SEPTEMBER 2025
RECORD PERFORMANCE FROM WELL-INVESTED ESTATE;
£10 MILLION SHARE BUYBACK PROGRAMME ANNOUNCED
2025 2024 %
£m £m change
Revenue 263.6 250.0 +5.4
Adjusted operating profit(1) 40.7 38.1 +6.8
Adjusted EBITDA(1) 62.5 59.0 +5.9
Adjusted profit before tax(1) 31.1 28.3 +9.9
Adjusted operating margin(1) 15.4% 15.2% +0.2
Profit before tax 30.6 25.3 +20.9
Net debt (pre-IFRS 16) 221.8 255.8 -13.3
Net debt to adjusted EBITDA (pre-IFRS 16)(1) (2) 2.0x 2.6x -0.6x
Net debt 308.5 346.5 -11.0
Net debt to adjusted EBITDA(1) (2) 2.6x 3.4x -0.8x
Basic earnings per share 34.95p 32.21p +8.5
Interim dividend per share(3) 12.22p 11.53p +6.0
Net assets per share(4) £12.71 £12.67 +0.3
1 Reference to an 'adjusted' item means that item has been adjusted to exclude
non-underlying items (see note 2 for adjusted items and note 5 for earnings
per share).
2 Net debt to adjusted EBITDA has been calculated based on the last 12 months'
actual adjusted EBITDA of £112.2 million and £117.1 million including leases
(see note 7 for net debt).
3 The interim dividend, in respect of the period ended 29 September 2025, is
expected to be paid on 5 December 2025 (see note 6).
4 Net assets per share are the group's net assets divided by the shares in
issue at the period end.
HIGHLIGHTS
· Record half-year performance following continued strong momentum
during the period. Total revenue increased 5.4% to £263.6 million and
adjusted EBITDA rose 5.9% to £62.5 million.
· 5.7% like-for-like sales increase from a combination of Young's
well-invested, premium estate and the excellent weather during late spring and
early summer.
· Adjusted profit before tax up 9.9% to £31.1 million, driven by
top line growth and strong conversion, despite continued pressures from
National Living Wage increases, National Insurance and food inflation.
· Earnings per share were up 8.5% to 34.95 pence, reflecting a
return to growth following share issues to fund post Covid investment in the
estate and City Pub acquisition.
· £12.6 million of investment in the period, continued investment
in our existing estate, underpinning the long-term business.
· Healthy cash generation, working capital timing and a second half
weighted investment plan has reduced debt since the full year by £26.5
million to £221.8 million (excluding leases), with net debt to EBITDA at 2.0
times (2.6 times including leases) and in line with our capital allocation
framework.
· Interim dividend of 12.22 pence per share, an increase of 6.0%,
reflecting our progressive dividend policy.
· Like-for-like revenue for the last thirteen weeks was ahead of
last year by 4.2%.
· £10 million share buyback programme announced, reflecting
disciplined approach to capital allocation and confidence in long-term growth
aspirations.
Simon Dodd, Chief Executive of Young's, commented:
"Our proven strategy and unwavering commitment to operating a premium,
well-invested managed house estate continues to be reflected in these results,
with a record first half performance following another strong period of
trading and market outperformance.
I am particularly proud that this performance was achieved against a backdrop
of significant ongoing cost headwinds. Record trading in our estate over the
summer, our biggest ever Wimbledon fortnight and the full benefit of City Pub
Group integration synergies helped to offset the impact of these pressures.
The second half has started well, but we remain mindful of ongoing economic
uncertainty and its potential impact on consumer sentiment, and we will
continue to monitor trading conditions closely. Despite everything we have
faced in recent years, Young's is well-positioned to continue to perform well
financially thanks to the unparalleled quality of our estate and our resilient
business model."
For further information, please contact:
Young & Co.'s Brewery, P.L.C.
020 8875 7000
Simon Dodd, Chief Executive Officer
Michael Owen, Chief Financial Officer
MHP Communications
07770 753 544
Tim Rowntree/Eleni Menikou/Charles Hirst
Peel Hunt (NOMAD & Joint Corporate Broker)
020 7418 8900
George Sellar/Andrew Clark
Stifel (Joint Corporate Broker)
020 7710 7600
Erik Anderson/Francis North
INTERIM STATEMENT
I am delighted to announce another strong set of results, driven by our
well-invested, premium managed house estate that continues to outperform the
wider market. Our riverside locations, beautiful gardens and growing number of
roof terraces meant the business benefitted from the fabulous spring and early
summer weather. We delivered a like-for-like sales increase of 5.7%, well
above the CGA RSM Hospitality Business Tracker for the same period which was
at 2.7%.
During the first half, we delivered another strong performance, with total
revenue up 5.4% to £263.6 million (2024: £250.0 million) and adjusted profit
before tax of £31.1 million up 9.9% (2024: £28.3 million), despite the
negative impact of a week-long London tube strike during September. Earnings
per share were up 8.5%, reflecting a return to growth following share issues
to fund post Covid investment in our estate and the City Pub acquisition.
These results are a testament to the quality and dedication of our people, and
the value added by recent and consistent investment in our estate. It
demonstrates that our strategy of running premium, individual and
differentiated pubs continues to deliver.
Operating margins remained under pressure during the period, due to the
increased cost headwinds of National Living Wage, National Insurance and, more
recently, food inflation. These headwinds have been offset by operational
improvements and the underlying margin benefit generated by the integration of
the City Pubs acquisition. Our continued strong performance, strong financial
position, combined with achieving the expected synergy benefits of the City
Pubs acquisition, has enabled us to invest £12.6 million during the period,
including several exciting large pub schemes that are expected to deliver
future strong like-for-like sales growth.
I am also really pleased to welcome John Dunsmore to the Board, who joined as
a Non-Executive Director on 9 July 2025. He has spent over 40 years working
across the sector in a variety of different roles and is one of the most
respected figures in the industry. His knowledge is already proving invaluable
to the Board, and we are delighted to be working with him.
Given the strong financial performance, and in line with our progressive
dividend policy, the Board has decided to raise the interim dividend again for
the eighth period running, by 6.0% to 12.22 pence per share (2024: 11.53 pence
per share). This is expected to be paid on 5 December 2025 to shareholders on
the register at close of business on 21 November 2025. In line with the
capital allocation framework set out at our recent capital markets day, the
Board has also approved a share buyback for up to a maximum of £10 million,
focused on the non-voting class, further details of which will be announced
shortly.
BUSINESS REVIEW
Total revenue was up 5.4%, and up 5.7% on a like-for-like basis. The period
started exceptionally well, benefitting from long periods of warm and sunny
weather during spring and early summer, supporting growth in our beautiful
gardens and riverside pubs, before the weather normalised at the end of
summer. These results are even more pleasing when measured against the strong
prior year comparator, which benefitted from the significant positive impact
of the EURO24 Championship on performance in June and early July, and the
substantial disruption caused by the week-long London tube strike in September
of this year.
Despite our pubs battling against well-publicised cost headwinds, conversion
has remained strong, and we delivered a record profit for the first half.
Total pub EBITDA was up 4.9% to £77.4 million (2024: £73.8 million).
Adjusted operating profit was up 6.8% to £40.7 million (2024: £38.1
million), with operating margins remaining strong at 15.4% (2024: 15.2%). The
realisation of the main City Pub Group integration benefits is now complete,
with drink margins up just under 2ppts across the acquired estate, and food
margins up just under 7ppts compared with this time last year, reflecting the
procurement benefits and operational improvements that have been implemented
over the last 18 months. Naturally, we will continue to focus on operational
efficiencies and further sales opportunities, something that we do
continuously across the whole estate. These synergy benefits have partially
offset the additional costs that Young's has faced across the period,
including the increases in National Living Wage, National Insurance and food
inflation, which total just over £4.7 million in the first half of the
financial year.
The excellent weather for the first half of the period delivered a significant
boost to drink sales, which were up 6.5% in total. We had our biggest
Wimbledon fortnight ever, breaking numerous daily sales records across our six
Wimbledon pubs. The iconic Dog and Fox in the heart of Wimbledon Village
delivered the highest ever weekly sales for a Young's pub, beating its own
previous record by 29%, with the Alexandra delivering its second highest ever
weekly sales. Yet again, our performance across the Wimbledon fortnight
highlights that pubs are a people business and our strength is based upon the
commitment of our teams and loyalty of our customers.
Our reinvigorated Spritz summer cocktail menu continued to flourish, growing
in value by 62% over last year. Aperol Spritz continues to take the top spot,
delivering just over 50% of all cocktails, with Hugo Spritz also growing in
popularity. Similarly, we elevated our low and alcohol-free drinks offer
further to ensure customers had greater choice for different summer drinking
occasions, growing their share of total cocktails from 6.3% last year to 8.2%.
The love of cask ale is deeply rooted in Young's heritage, and this year we
combined the modern with the classic by rebrewing Waggle Dance, a golden ale
with a hint of honey, for our 194(th) birthday in September. The King Street
Brewhouse in Bristol brewed the ale on site for a select number of pubs across
the wider estate, adding the contemporary twist of using honey from our very
own bees at the White Bear in Kennington.
Our food sales continued to grow, up 3.8% in total. The overall food strategy
remains fundamentally unchanged, although we continue to evolve. Within this,
we have seen the benefits from several initiatives from our entrepreneurial
general managers that showcase our quality and expertise. Smiths of Smithfield
(Farringdon) celebrated its 25(th) anniversary in partnership with Estrella,
developing a five-course dinner that put British beef centre stage, with all
five courses having a beef element, including the dessert! The Crown and
Anchor (Chichester) is renowned for celebrating British fish and shellfish
throughout the year. During the period, they hosted two sell out shellfish
festivals over the summer bank holiday weekend, shucking over 3,000 oysters at
each event. In the spring we re-launched the Burger Shack with a refreshed
menu. This, combined with the excellent weather, contributed a 12.7% increase
in sales on last year. However, food inflation is back on the agenda, running
at 7.2% across the period, with British beef showing a cost increase
significantly ahead of the average. Our Executive Chef team continued to
support the pubs, helping to mitigate food inflation as far as possible
through menu substitutions and other initiatives. We are hopeful that we will
start to see inflation ease as we progress through the rest of the year.
Our Young's Rooms continued to deliver a solid performance with total revenue
up 4.0%. During the period we continued our investment in pubs with rooms,
with The Alma (Wandsworth) starting a room refresh that will be running
through to November, crucial for continued growth. Our average room rate for
Young's has improved by £5.13 with an increase in RevPar (revenue per
available room) of £3.91 to £92.40.
Young's is a business that places investments in its pubs at the heart of its
decision making, an approach that is core to our continued strong performance.
We are committed to maintaining a premium estate, and our strong financial
position has enabled us to invest a total of £12.6 million across our
existing estate in the first six months of the year. We delivered major pub
investments at the Crown (Chertsey), Crown and Anchor (Chichester), Onslow
Arms (Clandon) and The Bull (Ditchling). We continued to invest in the City
Pubs estate to ensure they are elevated to the very highest standards, with
transformational schemes at Daly's Wine Bar and Beer Hall (City of London),
Althorp (Wandsworth Common) and the Old Firehouse (Exeter). All these
investments are achieving results consistent with their expected payback
profiles. We anticipate that capital investment for the second half of the
year will be c.£25 million, incorporating major schemes already nearing
completion at the Swan (Walton-on-Thames), Home Cottage (Redhill), Hoste
(Burnham Market), Victoria (Surbiton), and Larkshall (Chingford). During the
period we disposed of one non-core asset for total proceeds of £0.6 million.
FINANCE
At the period end, our net debt reduced by £26.5 million to £221.8 million
from £248.3 million at the year-end, largely driven through the strong result
achieved by the business during the period, the timing of the final payment
run in the period and a second half weighted capital investment plan. Our net
debt including lease liabilities sits at £308.5 million (31 March 2025:
£336.3 million). Based on the last twelve months' adjusted EBITDA of £112.2
million (£117.1 million including lease liabilities), our net debt to EBITDA
ratio has reduced to 2.0 times (31 March 2025: 2.4 times). The net debt to
EBITDA ratio including lease liabilities has reduced to 2.6 times (31 March
2025: 3.0 times), which sits within our target leverage ratio of 2.0x to 3.0x.
Our drawn down net debt of £221.8 million (including amortised fees) provides
us with debt headroom of £113.2 million at the half year. Total committed
bank facilities will drop from £335.0 million to £315.0 million in November
2025 with the £20.0 million fixed term facility being repaid in line with its
tenure and replaced with additional drawings on the RCF.
The adjusting items of £0.5 million (2024: £3.0 million) relate to £0.4
million of impairment costs in relation to right-of-use assets, acquisition
fees related to the purchase of the Queen of the South (Norwood) of £0.1
million, and tenant compensation for early termination of a lease. This was
offset by a gain on disposal of properties of £0.1 million.
In accordance with the requirements of IAS 19, the measurement of defined
benefit obligations and plan assets is based on prescribed actuarial
assumptions and methodologies. These measurements are inherently sensitive to
changes in financial and demographic assumptions and are subject to
volatility, particularly due to movements in investment markets at each
reporting date. At the interim reporting date, the net defined benefit
liability amounted to £2.5 million (31 March 2025: net defined benefit
liability of £4.3 million).
On an unadjusted basis, earnings per share is 34.95 pence, up 8.5% (2024:
32.21 pence), reflecting the strength of our performance in the current
interim period. Given the strong financial performance, and in line with our
progressive dividend policy, the Board has decided to raise the interim
dividend by 6.0% to 12.22 pence per share (2024: 11.53 pence per share).
CURRENT TRADING AND OUTLOOK
We are encouraged by recent trading, which is in line with our expectations.
Total sales for the last thirteen weeks are up by 4.4% and up by 4.2% on a
like-for-like basis. The Autumn Internationals will continue to provide a
welcome boost, particularly the pubs in our Southwest London heartland.
Christmas bookings are already looking strong, with pre-booked sales up 22% on
this time last year. The teams also remain focused on ensuring we drive our
lucrative walk-in trade, which ultimately underpins the overall success of the
Christmas and New Year period.
In the second half of the year, we will continue with our targeted investment
programme across the estate, balancing our focus on managing debt levels and
our long-term winning strategy of operating a premium, individual and well
invested estate. Since the period end, we have re-opened several pubs closed
for refurbishment, including Home Cottage (Redhill), Victoria (Surbiton) and
Westgate (Winchester). All are now open and ready for the important Christmas
and New Year period.
We have had a good start to the second half of our financial year, but we
continue to monitor trading conditions closely. The headwinds facing our
industry, particularly on employment costs, are well publicised and the impact
of the Government's upcoming Budget in November on consumer sentiment and
other fiscal matters remains unclear. We are also conscious of the significant
impact further tube strikes could have on trade in the lead up to the festive
period. On a more positive note, the business is in great shape, we are
maximising returns from the City Pub acquisition and ensuring our pub
investments continue to perform. We remain focused on maintaining our premium
position within the pub and bedrooms sector and are confident in our winning
strategy of operating premium, individual and well-invested managed pubs and
bedrooms.
Simon Dodd
Chief Executive
13 November 2025
Group income statement
For the 26 weeks ended 29 September 2025
Unaudited Unaudited Audited
26 weeks 26 weeks 52 weeks
to 29 Sep to 30 Sep to 31 Mar
2025 2024 2025
Notes £m £m £m
Revenue 3 263.6 250.0 485.8
Operating costs before adjusting items (222.9) (211.9) (414.4)
Adjusted operating profit 40.7 38.1 71.4
Adjusting items 2 (0.5) (3.0) (33.5)
Operating profit 40.2 35.1 37.9
Finance income - 0.1 -
Finance costs (9.4) (9.9) (19.9)
Finance (charge)/income for pension obligations 11 (0.2) - 0.1
Profit before tax
30.6 25.3 18.1
Income tax expense 4 (8.8) (5.0) (8.1)
Profit for the period attributable to shareholders of the parent company
21.8 20.3 10.0
Attributable to:
Shareholders of the parent company 21.7 20.0 9.8
Non-controlling interests 0.1 0.3 0.2
21.8 20.3 10.0
Pence Pence Pence
Earnings per 12.5p ordinary share
Basic 5 34.95 32.21 16.10
Diluted 5 34.94 32.20 16.10
Group statement of comprehensive income
For the 26 weeks ended 29 September 2025
Unaudited Unaudited Audited
26 weeks 26 weeks 52 weeks
to 29 Sep to 30 Sep to 31 Mar
2025 2024 2025
Notes £m £m £m
Profit for the period attributable to the shareholders of the parent company 21.8 20.3 10.0
Other comprehensive income
Items that will not be reclassified subsequently to profit or loss:
Unrealised gain on revaluation of property - - 14.4
Remeasurement of retirement benefit schemes 11 0.9 - (7.3)
Tax on above components of other comprehensive income - - (1.5)
Items that will be reclassified subsequently to profit or loss:
Fair value movement of interest rate swaps (1.2) (2.1) (1.7)
Tax on fair value movement of interest rate swaps 0.3 0.5 0.5
- (1.6) 4.4
Total comprehensive income for the period 21.8 18.7 14.4
Attributable to:
Shareholders of the parent company 21.7 18.4 14.3
Non-controlling interests 0.1 0.3 0.1
21.8 18.7 14.4
Group balance sheet
At 29 September 2025
Restated
Unaudited Unaudited Audited
at 29 Sep at 30 Sep at 31 Mar
2025 2024 2025
Notes £m £m £m
Non-current assets
Goodwill 9 77.1 76.3 77.1
Property and equipment 8 1,036.8 1044.0 1,042.1
Investment properties 3.8 4.3 3.8
Right-of-use assets 9 158.7 174.2 161.9
Trade and other receivables 0.9 - 0.9
Retirement benefit schemes 11 - 2.6 -
1,277.3 1,301.4 1,285.8
Current assets
Inventories 6.8 6.6 6.6
Trade and other receivables 10.7 16.1 12.6
Income tax receivable - - 0.7
Derivative financial instruments 0.3 2.0 1.1
Cash 12.1 0.1 7.5
29.9 24.8 28.5
Asset held for sale 10 1.7 0.6 -
31.6 25.4 28.5
Total assets 1,308.9 1,326.8 1,314.3
Current liabilities
Borrowings(1) (19.4) - (20.0)
Bank overdrafts - - (3.3)
Lease liabilities 9 (6.7) (6.6) (6.3)
Trade and other payables (64.0) (61.6) (62.9)
Income tax payable (2.3) (1.7) -
(92.4) (69.9) (92.5)
Non-current liabilities
Borrowings(1) (214.5) (255.9) (232.5)
Lease liabilities 9 (80.0) (84.1) (81.7)
Derivative financial instruments (0.4) (0.9) (0.1)
Deferred tax liabilities (129.9) (127.7) (128.8)
Retirement benefit schemes 11 (2.5) (1.5) (4.3)
(427.3) (470.1) (447.4)
Total liabilities (519.7) (540.0) (539.9)
Net assets 789.2 786.8 774.4
Capital and reserves
Share capital 12 7.8 7.8 7.8
Share premium 12 7.8 7.8 7.8
Other reserves 38.0 38.0 38.0
Hedging reserve 0.3 0.8 1.2
Revaluation reserve 289.4 277.6 289.2
Retained earnings 443.2 451.5 427.8
786.5 783.5 771.8
Non-controlling interests 2.7 3.3 2.6
Total equity 789.2 786.8 774.4
(1) As a result of the amendments to IAS 1, current borrowings for the period
ended 30 September 2024 have been re-classified as non-current borrowings.
Refer to note 1 for further detail.
Group statement of changes in equity
For the 26 weeks ended 29 September 2025
Notes Share capital and premium Other reserves Hedging reserve Revaluation reserve Retained earnings Non-controlling interest Total equity
£m £m £m £m £m £m £m
At 31 March 2025 15.6 38.0 1.2 289.2 427.8 2.6 774.4
Total comprehensive income
Profit for the 26-week period - - - - 21.7 0.1 21.8
Other comprehensive income
Remeasurement of retirement benefit
schemes 11 - - - - 0.9 - 0.9
Net movement of interest rate swaps -
cash flow hedge - - (1.2) - - - (1.2)
Tax on above components of other
comprehensive income - - 0.3 0.2 (0.2) - 0.3
Total comprehensive income - - (0.9) 0.2 22.4 0.1 21.8
Transactions with owners recorded directly in equity
Dividends paid on equity shares - - - - (7.2) - (7.2)
Share based payments - - - - 0.2 - 0.2
Disposal of non-controlling interests - - - - - - -
- - - - (7.0) - (7.0)
At 29 September 2025 15.6 38.0 0.3 289.4 443.2 2.7 789.2
At 1 April 2024 15.6 38.0 2.4 277.6 438.0 3.6 775.2
Total comprehensive income
Profit for the 26-week period - - - - 20.0 0.3 20.3
Other comprehensive income
Net movement of interest rate swaps - cash flow hedge
- - (2.1) - - - (2.1)
Tax on above components of other
comprehensive income - - 0.5 - - - 0.5
Total comprehensive income - - (1.6) - 20.0 0.3 18.7
Transactions with owners recorded directly in equity
Dividends paid on equity shares - - - - (6.8) - (6.8)
Share based payments - - - - 0.3 - 0.3
Disposal of non-controlling interests - - - - - (0.6) (0.6)
- - - - (6.5) (0.6) (7.1)
At 30 September 2024 15.6 38.0 0.8 277.6 451.5 3.3 786.8
Group statement of cash flow
For the 26 weeks ended 29 September 2025
Unaudited Unaudited Audited
26 weeks 26 weeks 52 weeks
to 29 Sep to 30 Sep to 31 Mar
2025 2024 2025
Notes £m £m £m
Operating activities
Net cash generated from operations 7 62.6 45.2 103.8
Tax (paid)/received (4.3) 0.9 (5.5)
Net cash flow from operating activities 58.3 46.1 98.3
Investing activities
Proceeds from disposal of property and equipment(1) 0.6 3.9 6.8
Purchases of property and equipment 8 (12.6) (21.7) (47.0)
Purchase of asset classified as held for sale 10 (1.7) - -
Direct costs incurred in acquisition of leases - (0.2) -
Disposal of subsidiary shareholding(2) - 2.3 2.3
Net cash used in investing activities (13.7) (15.7) (37.9)
Financing activities
Interest paid (7.4) (5.7) (19.1)
Equity dividends paid 6 (7.2) (6.8) (14.0)
Acquisition of additional shareholding in subsidiaries(2) - - (0.8)
Payments of principal portion of lease liabilities (2.9) (3.0) (6.2)
Repayments of borrowings(3) (19.0) (28.5) (62.0)
Transaction costs incurred on borrowings (0.2) (3.2) (0.5)
Proceeds from borrowings - - 29.5
Net cash flow used in financing activities (36.7) (47.2) (73.1)
Net increase/(decrease) in cash 7.9 (16.8) (12.7)
Cash at the beginning of the period 4.2 16.9 16.9
Cash at the end of the period 12.1 0.1 4.2
(1) During the current period to 29 September 2025, £0.6 million related to
the sale of the Chapel 1877 (Cardiff). During the prior period to 31 March
2025, £6.8 million related to the sale of the Plough (Beddington), Clock
House (East Dulwich), Angel & Greyhound (Oxford), Dolphin (Betchworth),
Wild Duck (near Cirencester), Tavern (Cheltenham), White Hart
(Littleton-on-Severn) and an unlicensed property (Greenford).
(2) During the prior period to 31 March 2025, the group sold its 53%
shareholding in The Pioneer (City) Pub Company Limited, for a total
consideration of £2.3 million. In addition, the group increased its
shareholding in both The Galaxy (City) Pub Company Limited and The Sovereign
(City) Pub Company Limited to 61% for consideration of £0.8m.
(3) During the current period to 29 September 2025, the group repaid net
£19.0 million of the Revolving Credit Facility debt. During the prior 52-week
period to 31 March 2025, the group repaid net £31.5 million of the Revolving
Credit Facility debt and repaid the £1 million term loan with Metro Bank
which was held indirectly through the group.
NOTES TO THE FINANCIAL STATEMENTS
1. ACCOUNTS
This interim report was approved by the board on 12 November 2025. The interim
financial statements are unaudited and are not the group's statutory accounts
as defined in s.434 of the Companies Act 2006.
The accounting policies used in the preparation of the consolidated interim
financial statements are in accordance with the recognition and measurement
criteria of UK-adopted International Accounting Standards. These standards are
applied from 1 April 2025 with no changes to the accounting policies set out
in the statutory accounts of Young & Co.'s Brewery, P.L.C. for the period
ended 31 March 2025 (UK-adopted International Accounting Standards). The
financial statements have not been prepared (and are not required to be
prepared) in accordance with IAS 34: Interim Financial Reporting, with the
exception of note 4, taxation, where the tax charge for the half year to 29
September 2025 has been calculated using an estimate of the full year
effective tax rate, in line with the principles of IAS 34. The accounting
policies have been applied consistently throughout the group for the purposes
of preparation of this financial information.
The interim report is presented in pounds sterling and all values are shown in
millions of pounds (£m) rounded to the nearest £0.1 million, except where
otherwise indicated.
Statutory accounts for the period ended 31 March 2025 have been delivered to
the Registrar of Companies. The auditor's report on those accounts was
unqualified and did not contain any reference to any matters to which the
auditor drew attention by way of emphasis without qualifying the report.
Further, that report did not contain a statement under s.498(2) or (3) of the
Companies Act 2006.
This interim report has been prepared in accordance with the AIM Rules issued
by the London Stock Exchange.
This interim report includes a prior period restatement in relation to the
presentation and classification of the RCF facility in accordance with IAS 1
amendments. This saw the RCF facility reclassified from current liabilities to
non-current liabilities on the face of the balance sheet. The adjustment
reduces current liabilities by £43.0 million and increases non-current
liabilities by £43.0 million as at 30 September 2024.
GOING CONCERN
At 29 September 2025, the group had cash in bank of £12.1 million and
committed borrowing facilities of £335.0 million, of which £233.9 million
was drawn down, net of arrangement fees totalling £2.1 million. The group
expects, by 23 November 2026 (the 'going concern' period), to have available
facilities of £308.3 million, with one tranche of debt, the £20.0 million
term loan, maturing during November 2025, alongside amortised repayments on
the £110.0 million term loan. In addition to these committed facilities, the
group has a £12.0 million overdraft facility with HSBC, which is not
committed, and is therefore not assumed to continue for the purpose of this
assessment.
As part of the directors' consideration of the appropriateness of adopting the
going concern basis, the group has modelled a base case and two sensitised
scenarios for the going concern period. The base case is the board approved
forecast to March 2026 as well as the board approved strategic plan covering
April to November 2026. The key judgements applied are the extent of any
influence on trade due to economic uncertainty and its impact on consumers
spending or indeed other one-off demand shocks, and the cost pressures that
the hospitality industry is continuing to face.
The base case model assumes the group continues to trade as now whilst
reflecting the inflationary environment that currently exists across the going
concern period. The general reduction in trade scenario looks at a decline of
15% in sales and 19% in EBITDA across the period. The cost inflation scenario
includes an average 5% increase in the food cost base, 3% increase in payroll
related costs above anticipated changes and a 10% increase in general pub
operating costs for the period with no retail price increases. The group has
assumed capital expenditure levels will continue at historical levels and no
structural changes to the business will be needed in any of the scenarios
modelled.
In the base case, general reduction in trade and cost inflation scenarios
there continues to be comfortable headroom on the group's debt facilities and
all banking covenants are fully complied with throughout the going concern
period.
The group has also performed a reverse stress test case. The test focused on
the decline in sales and profit that the group would be able to absorb before
breaching any financial covenants or indeed any liquidity issues. There would
need to be a sales reduction of c.35% and profit reduction of c.55% between
November 2025 and November 2026 compared to the base case, a reduction far in
excess of those experienced historically (with the exception of the restricted
covid-19 period), before there is a breach of financial covenants in the
period and is calculated before reflecting any mitigating actions such as
reduced capital expenditure.
Based on these forecasts and sensitivities, coupled with the current debt
levels and the ongoing debt structure in place, the board is confident that
the group can manage its business risks and therefore continue in operational
existence for the foreseeable future. For this reason, the group continues to
adopt the going concern basis in preparing its financial statements.
2. ADJUSTING ITEMS AND OTHER FINANCIAL MEASURES
During the period the cash flow impact of adjusting items was £0.4 million
(for the period ended 30 September 2024: £2.1 million).
26 weeks 26 weeks 52 weeks
to 29 Sep to 30 Sep to 31 Mar
2025 2024 2025
£m £m £m
Amounts included in operating profit
Net profit/(loss) on disposal of properties(1) 0.1 0.4 (0.3)
Impairment loss(2) (0.4) - (8.7)
Purchase costs(3) (0.1) - -
Tenant compensation(4) (0.1) - -
Gain on disposal of subsidiary(5) - 0.7 1.7
Restructuring costs(6) - (2.9) (3.2)
Purchase costs - City Pub Group(7) - (0.9) (0.9)
Integration costs - City Pub Group(8) - (0.3) (0.3)
Upward movement on the revaluation of properties (note 8)(9) - - 3.8
Downward movement on the revaluation of properties (note 8)(9) - - (25.6)
(0.5) (3.0) (33.5)
Tax attributable to above adjusting items 0.1 0.2 5.1
Total adjusting items after tax (0.4) (2.8) (28.4)
1 The net profit on disposal of properties related to the difference
between cash less disposal costs received from the Chapel 1877 (Cardiff) and
the carrying value of the assets, at the date of disposal. The total cash
consideration received for this disposal was £0.6 million. In addition, the
profit on disposal of properties related to the difference between the value
of right-of-use assets and lease liabilities of the lease of the Hollow Bottom
(Guiting Power).
During the previous 52-week period to 31 March 2025, the net loss on disposal
of properties related to the difference between cash less disposal costs
received from the Plough (Beddington), Clock House (East Dulwich), Angel &
Greyhound (Oxford), Dolphin (Betchworth), Wild Duck (near Cirencester), Tavern
(Cheltenham), White Hart (Littleton-on-Severn) and an unlicensed property
(Greenford), and the carrying value of their assets, at the date of disposal.
The total cash consideration received for these disposals was £6.8 million.
2 Impairment losses of £0.4 million were recognised in relation to
right-of-use assets. See note 9.
During the previous 52-week period to 31 March 2025, impairment losses of
£8.2 million were recognised in relation to right-of-use assets and £0.5
million in relation to investment properties.
3 Purchase costs related to professional fees and stamp duty land tax
arising on the acquisition of the freehold of the Queen of the South
(Norwood).
4 Tenant compensation was paid to the previous tenants of the Clapham
North (Clapham) to terminate their lease agreement early.
5 During the previous 52-week period to 31 March 2025, the gain on
disposal of a subsidiary relates to the difference between the consideration
received and the assets and liabilities disposed of as part of the disposal of
the 53% shareholding in The Pioneer (City) Pub Company Limited. It also
includes the derecognition of the non-controlling interest in this subsidiary
at the date of disposal.
6 During the previous 52-week period to 31 March 2025, the restructuring
costs related to severance costs paid to employees of City Pub Group.
7 During the previous 52-week period to 31 March 2025, the purchase costs
related to the acquisition of City Pub Group.
8 During the previous 52-week period to 31 March 2025, the integration
costs related to the integration of City Pub Group, to align with the rest of
the group's operations to achieve common synergies.
9 The net downward movement on the revaluation of properties in the
previous 52-week period to 31 March 2025 related to net downward movements in
excess of amounts recognised in equity. See note 17 in the statutory accounts
for the period ended 31 March 2025 for further details.
Other financial measures
The table below shows how adjusted EBITDA, adjusted operating profit and
profit before tax have been arrived at. These alternative performance measures
have been provided as the board believes that they give useful additional
measures of the group's underlying performance and are the measures that the
board uses to assess the group's performance.
26 weeks 26 weeks 52 weeks
to 29 Sep to 30 Sep to 31 Mar
2025 2024 2025
£m £m £m
Profit before tax 30.6 25.3 18.1
Adjusting items 0.5 3.0 33.5
Adjusted profit before tax 31.1 28.3 51.6
Finance income - (0.1) -
Finance costs 9.4 9.9 19.9
Finance income for pension obligations 0.2 - (0.1)
Adjusted operating profit 40.7 38.1 71.4
Depreciation 21.8 20.9 42.2
Adjusted EBITDA 62.5 59.0 113.6
During the period, £56.4 million of adjusted operating profit related to
managed houses (in the period ended 30 September 2024: £53.7 million).
Adjusted operating loss of £15.7 million mainly related to head office costs
and was unallocated (in the period ended 30 September 2024: £15.6 million).
During the period, £77.4 million of adjusted EBITDA related to managed houses
(in the period ended 30 September 2024: £73.8 million). Adjusted negative
EBITDA of £14.9 million mainly related to head office costs and was
unallocated (in the period ended 30 September 2024: £14.8 million).
3. REVENUE
The recognition of revenue under each of the group's material revenue streams
is as follows:
26 weeks 26 weeks 52 weeks
to 29 Sep to 30 Sep to 31 Mar
2025 2024 2025
£m £m £m
Drink sales 168.9 158.6 305.5
Food sales 75.6 72.8 146.3
Accommodation sales 17.9 17.3 30.8
Total revenue from contracts with customers 262.4 248.7 482.6
Other income(1) 1.2 1.3 3.2
Total revenue recognised 263.6 250.0 485.8
(1) Other income includes rental income and room hire.
4. TAXATION
The taxation charge for the 26 weeks ended 29 September 2025 results in an
effective tax rate of 29.9% (52 weeks ended 31 March 2025: 44.8%).
26 weeks 26 weeks 52 weeks
to 29 Sep to 30 Sep to 31 Mar
Tax charged in the group income statement 2025 2024 2025
£m £m £m
Current tax
Corporation tax expense 7.2 5.8 9.5
Adjustment in respect of current tax of prior periods 0.1 - 0.3
7.3 5.8 9.8
Deferred tax
Origination and reversal of temporary differences 1.5 (0.8) (1.2)
Adjustment in respect of prior periods - - (0.5)
1.5 (0.8) (1.7)
Tax charge in the income statement 8.8 5.0 8.1
The effective half year current tax rate of 23.7% is down from 54.1% in the
prior 52-week period to 31 March 2025. This is below the standard rate, due
largely to the utilisation of losses brought forward from prior periods in the
City Pub Group and lower non-deductible amortisation and impairment costs.
5. EARNINGS PER ORDINARY SHARE
(a) Weighted average number of shares
26 weeks 26 weeks 52 weeks
29 Sep 30 Sep 31 Mar
2025 2024 2025
Number Number Number
Basic weighted average number of ordinary shares in issue 62,096,842 62,096,842 62,096,842
Dilutive potential ordinary shares from outstanding employee share options
13,058 9,875 20,349
Diluted weighted average number of shares 62,109,900 62,106,717 62,117,191
(b) Earnings attributable to shareholders of the parent company
26 weeks 26 weeks 52 weeks
29 Sep 30 Sep 31 Mar
2025 2024 2025
£m £m £m
Profit for the period 21.7 20.0 10.0
Adjusting items 0.5 3.0 33.5
Tax attributable to above adjustments (0.1) (0.2) (5.1)
Adjusted earnings after tax 22.1 22.8 38.4
Basic earnings per share
Pence Pence Pence
Basic 34.95 32.21 16.10
Effect of adjusting items 0.64 4.51 45.74
Adjusted basic earnings per share 35.59 36.72 61.84
Diluted earnings per share
Pence Pence Pence
Diluted 34.94 32.20 16.10
Effect of adjusting items 0.64 4.51 45.72
Adjusted diluted earnings per share 35.58 36.71 61.82
The basic earnings per share figure is calculated by dividing the net profit
for the period attributable to equity shareholders of the parent by the
weighted average number of ordinary shares in issue during the period. Diluted
earnings per share have been calculated on a similar basis taking into account
13,058 (2024: 9,875) dilutive potential shares under the group's SAYE and LTIP
schemes.
Adjusted earnings per share are presented to eliminate the effect of the
adjusting items and the tax attributable to those items on basic and diluted
earnings per share.
6. DIVIDENDS ON EQUITY SHARES
26 weeks 26 weeks 52 weeks
to 29 Sep to 30 Sep to 31 Mar
2025 2024 2025
Pence Pence Pence
Final dividend paid (previous period) 11.53 10.88 10.88
Interim dividend paid (current period) - - 11.53
11.53 10.88 22.41
The table above sets out dividends that have been paid. The final dividend in
respect of the period ended 31 March 2025, at a cost of £7.2 million (for the
period ended 1 April 2024: £6.8 million) was paid during the period. The
interim dividend, in respect of the period ended 29 September 2025, at a cost
of £7.6 million (for the period ended 30 September 2024: £7.2 million), is
expected to be paid on 5 December 2025 to shareholders on the register at the
close of business on 21 November 2025.
7. NET CASH GENERATED FROM OPERATIONS AND ANALYSIS OF NET DEBT
26 weeks 26 weeks 52 weeks
to 29 Sep to 30 Sep to 31 Mar
2025 2024 2025
£m £m £m
Profit before tax 30.6 25.3 18.1
Net finance costs 9.4 9.8 19.9
Finance charge for pension obligations 0.2 - (0.1)
Operating profit 40.2 35.1 37.9
Depreciation of property and equipment 17.4 16.4 33.1
Depreciation of right-of-use assets 4.4 4.5 9.1
Impairment of goodwill right-of-use assets and investment properties 0.4 - 8.7
Movement on revaluation of properties - - 21.8
Net (profit)/loss on disposal of property (0.1) (0.4) 0.3
Net gain on disposal of subsidiaries - (0.7) (1.7)
Difference between pension service cost and cash contributions paid (1.1) (1.1) (2.2)
Share based payments (0.2) (0.3) (0.2)
Movements in working capital
- Inventories (0.2) (0.1) (0.1)
- Receivables 1.9 (0.1) 1.7
- Payables (0.1) (8.1) (4.6)
Net cash generated from operations 62.6 45.2 103.8
Analysis of group net debt
Restated
At 29 Sep At 30 Sep At 31 Mar
2025 2024 2025
£m £m £m
Cash 12.1 0.1 7.5
Bank overdrafts - - (3.3)
Net cash 12.1 0.1 4.2
Current borrowings and loan capital (19.4) - (20.0)
Non-current borrowings and loan capital (214.5) (255.9) (232.5)
Net debt (pre-IFRS 16) (221.8) (255.8) (248.3)
Current lease liabilities (6.7) (6.6) (6.3)
Non-current lease liabilities (80.0) (84.1) (81.7)
Net debt (308.5) (346.5) (336.3)
8. PROPERTY AND EQUIPMENT
Fixtures,
Land & fittings &
buildings equipment Total
Cost or valuation £m £m £m
At 1 April 2024 953.3 202.3 1,155.6
Additions 8.3 38.7 47.0
Business combinations - - -
Disposals (7.9) (1.4) (9.3)
Transfer from right-of-use assets(1) 3.2 0.4 3.6
Fully depreciated assets (0.7) (23.5) (24.2)
Revaluation
- effect of upward movement in property valuation 41.2 - 41.2
- effect of downward movement in property valuation (27.4) - (27.4)
At 31 March 2025 970.0 216.5 1,186.5
Additions 1.9 10.7 12.6
Disposals (0.8) (0.2) (1.0)
Fully depreciated assets - (10.2) (10.2)
At 29 September 2025 971.1 216.8 1,187.9
Depreciation and impairment
At 1 April 2024 39.1 79.6 118.7
Depreciation charge 1.8 31.3 33.1
Disposals (3.9) (0.5) (4.4)
Fully depreciated assets (0.7) (23.5) (24.2)
Revaluation
- effect of upward movement in property valuation (4.4) - (4.4)
- effect of downward movement in property valuation 25.6 - 25.6
At 31 March 2025 57.5 86.9 144.4
Depreciation charge 0.9 16.5 17.4
Disposals (0.4) (0.1) (0.5)
Fully depreciated assets - (10.2) (10.2)
At 29 September 2025 58.0 93.1 151.1
Net book value
At 1 April 2024 914.2 122.7 1,036.9
At 31 March 2025 912.5 129.6 1,042.1
At 29 September 2025 913.1 123.7 1,036.8
(1) During the prior period the group acquired the freehold interest in the
Stag (Belsize Park), which was acquired as a leasehold during the prior
period.
( )
( )
8. PROPERTY AND EQUIPMENT (continued)
Revaluation of property and equipment
The values of the group's freehold land, buildings and fixtures and fittings
were reviewed in light of current market factors by management and by Savills,
who perform a desktop review based upon information provided by the group,
pursuant to the group's accounting policy. The group considers that the
valuation reached at 31 March 2025 still represents the best estimate of the
fair value of the estate at 29 September 2025.
Details of the methodology used in determining the group's property values are
discussed in the group's audited accounts for the 52 weeks ended 31 March
2025. The key inputs are EBITDA, a multiplier and, in some cases, underlying
property values. A sensitivity analysis has been conducted on the property
estate to give an indication of the impact of movements in the most sensitive
assumption, EBITDA. The analysis considers this single change with the other
assumptions unchanged. In practice, changes in one assumption may be
accompanied by changes in another. Changes in market values may also occur at
the same time as any changes in assumptions. This information should not be
taken as a projection of likely future valuation movements. Decreasing or
increasing the EBITDA used in the revaluation by 10% would decrease/increase
the valuation by £86.2 million.
9. LEASE LIABILITIES, RIGHT-OF-USE ASSETS AND GOODWILL
Set out below are the carrying amounts of the group's right-of-use assets and
lease liabilities and the movements during the period:
Right-of-use assets Lease
liabilities
£m £m
As at 1 April 2024 183.2 91.8
Additions 0.6 0.6
Business combinations - -
Lease amendments 2.5 2.5
Depreciation expense (9.1) -
Accretion of interest - 4.1
Payments - (10.3)
Impairments (8.2) -
Lease terminations (3.5) (0.7)
Transfer out of right-of-use assets (3.6) -
As at 31 March 2025 161.9 88.0
Additions 1.1 1.1
Lease amendments 0.5 0.5
Depreciation expense (4.4) -
Accretion of interest - 2.0
Payments - (4.9)
Impairment (0.4) -
As at 29 September 2025 158.7 86.7
Right-of-use assets predominantly relate to leasehold properties, along with
motor vehicles and IT equipment.
The depreciation charge is recognised within operating costs in the income
statement.
Lease amendments in both the current and prior period largely represent
upwards market rent reviews.
The group tests right-of-use assets for impairment when there are indicators
that the assets may be impaired. An impairment is recognised if the
recoverable amount is lower than carrying value. Recoverable amount is
calculated as the higher of fair value less costs of disposal and value in
use.
Impairment considerations
The group tests goodwill annually for impairment or more frequently if there
are indicators that goodwill may have been impaired. There will be an
impairment if the recoverable amount is lower than carrying value. Recoverable
amount is the higher of value in use or fair value less costs to sell. The
value in use is calculated using the budget approved by the board. At 29
September 2025, no impairment has been recognised in respect of the current
period (31 March 2025: £nil).
The group monitors the latest government legislation in relation to
climate-related matters. At the current time, no legislation has been passed
that will significantly impact the group's impairment review. The group will
adjust the key assumptions used in value-in-use calculations and sensitivity
to changes in assumptions should a change be required.
10. ASSET HELD FOR SALE
Unaudited Unaudited Audited
at 29 Sep at 30 Sep at 31 Mar
2025 2024 2025
£m £m £m
Property and equipment 1.7 0.6 -
Property held for sale 1.7 0.6 -
At 29 September 2025 one property (2024: one property) was classified as held
for sale based on its fit with the remaining group's estate. Sale is expected
within 12 months from the reporting date. On reclassifying the property as
held for sale a charge of £nil (2024: £0.1 million) was recognised within
adjusting items (see note 2).
11. RETIREMENT BENEFIT SCHEMES
The table below summarises the movement in the retirement benefit schemes in
the period.
26 weeks 26 weeks 52 weeks
to 29 Sep to 30 Sep to 31 Mar
2025 2024 2025
£m £m £m
Changes in the present value of the retirement benefit schemes are as follows:
Opening (deficit)/surplus (4.3) 0.1 0.7
Current service cost - (0.1) (0.1)
Contributions 1.1 1.1 2.3
Finance (charge)/income for pension obligations (0.2) - 0.1
Remeasurement through other comprehensive income 0.9 0.8 (7.3)
(2.5) 1.9 (4.3)
IFRIC 14 adjustment - (0.8) -
Closing (deficit)/surplus (2.5) 1.1 (4.3)
As at 1 April 2024, the group determined that the accounting surplus should be
recognised after deducting withholding tax, which would be levied prior to the
future refunding of any surplus and would be payable by the Trustees of the
Scheme. The pension surplus has therefore been presented on a net basis at 30
September 2024.
12. SHARE CAPITAL
Total share capital comprises the nominal value of the share capital issued
and fully paid of £7.8 million (2025: £7.8 million) and the share premium
account of £7.8 million (2025: £7.8 million). Share capital issued in the
period comprises a nominal value of £nil (2025: £nil) and a share premium of
£nil (2025: £nil).
13. POST BALANCE SHEET EVENTS
There were no post balance sheet events.
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