REG - Young & Co's Brew. - Final Results
05/06/2025 07:00
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RNS Number : 5857L Young & Co's Brewery PLC 05 June 2025
Young & Co.'s Brewery, P.L.C.
Preliminary results for the 52 weeks ended 31 MARCH 2025
AN EXCELLENT performance and well positioned for FURTHER growth
2025 2024 %
£m £m change
Revenue 485.8 388.8 +24.9
Adjusted operating profit(1) 71.4 57.3 +24.6
Adjusted profit before tax(1) 51.6 49.4 +4.5
Adjusted EBITDA(1) 113.6 92.2 +23.2
Adjusted operating margin(1) 14.7% 14.7% 0.0%
Net debt (pre-IFRS 16) 248.3 267.8 -7.3
Net debt to adjusted EBITDA (pre-IFRS 16)(2) 2.4x 3.2x -0.8x
Net debt 336.3 359.6 -6.5
Net debt to adjusted EBITDA(1) 3.0x 3.9x -0.9x
Statutory profit before tax 18.1 20.7 -12.6
Net assets 774.4 775.2 -0.1
Adjusted basic earnings per share(1) 61.84p 62.97p -1.8
Basic earnings per share 16.10p 18.89p -14.8
( )
Dividend per share(3) 23.06p 21.76p +6.0
(interim and recommended final)
Net assets per share(4) £12.47 £12.48 -0.1
(1) Reference to an "adjusted" item means that item has been adjusted to
exclude a non-underlying pre-tax cost of £33.5 million (2024: non-underlying
cost of £28.7 million).
(2) Net debt to adjusted EBITDA (pre-IFRS 16) has been calculated using a
pre-IFRS 16 adjusted EBITDA of £103.3 million (2024: £83.3 million). See
notes 4 and 16.
(3) The dividend, in respect of the period ended 31 March 2025, is expected to
be paid on 17 July 2025 to shareholders who are on the register of members at
the close of business on 13 June 2025.
(4) Net assets per share are the group's net assets divided by the shares in
issue at the period end.
HIGHLIGHTS
· Strong like-for-like revenue growth of 5.7%, reflecting the
strength of Young's strategy, supported by an excellent performance during
EURO24 and the Christmas period, and despite challenging weather at the start
of the year.
· Total revenue for the period up 24.9% to £485.8 million, and
adjusted EBITDA up 23.2% to £113.6 million with managed house EBITDA for the
period up 22.4% to £138.3 million.
· Adjusted operating profit up £14.1 million to £71.4 million, with a
sector leading margin of 14.7%, despite continued National Living Wage
increases of almost 10%, utility costs and H1 head office dual running costs
of £2.1 million from the City Pub Group acquisition.
· Healthy cash generation, a balanced investment strategy, and the
planned selective disposal of nine trading pubs has reduced year end net debt
(pre-IFRS 16) by £19.5 million to £248.3 million (net debt £336.3 million),
with net debt to EBITDA (pre-IFRS 16) at 2.4 times (net debt to adjusted
EBITDA 3.0 times).
· Recommendation for a final dividend of 11.53 pence, resulting in
a total dividend for the year of 23.06 pence, up 6.0%, reflecting our strong
profit performance and progressive dividend policy.
· Completed the successful integration of City Pub Group into the
Young's estate. Head office synergies realised, and food and drink margin
benefits achieved in line with the acquisition plan.
· Like-for-like managed house revenue for the last nine weeks was
ahead of last year by 8.0%, giving the Board confidence for the year ahead.
POST PERIOD END HIGHLIGHTS
· Board changes: Nick Miller has decided to step down from the
Board after eight years, with John Dunsmore joining as NED, both effective at
the July AGM.
Simon Dodd, Chief Executive of Young's, commented:
"I am delighted to announce another excellent set of results, reflecting the
strength of the Young's strategy. During the year, customers flocked to our
wonderful pubs to watch EURO24 and celebrate Christmas. Poor weather at the
start of the year held back early trading, but unseasonable March sunshine
delivered a welcome boost to sales. We have successfully completed the
integration of the City Pub Group, realising all the promised synergies and we
are well advanced in achieving further operational benefits."
"A tough macroeconomic environment for the industry seems to have been par for
the course since I became CEO and Government changes coming into effect in
April make life no easier. However, we are in excellent shape, with our
differentiated approach and premium business model positioning us well in
difficult conditions. Young's continues to be a leader for like-for-like sales
in our sector and everything within our control is going to plan."
"It's been a fast start to the new financial year, with the great weather
throughout April and May meaning our beautiful pub gardens and riverside
locations have been packed full of customers. Whilst we remain mindful of the
headwinds facing consumers and the wider issues that our industry will
encounter, we are confident our premium, well-invested, predominantly freehold
pub estate will continue to deliver profitable growth."
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 Group
Tim Rowntree/Eleni Menikou/Charles Hirst
+44 (0)7701
308818
youngs@mhpgroup.com
(mailto:youngs@mhpgroup.com)
Peel Hunt (NOMAD and joint broker)
George Sellar/Andrew
Clark
020 7418 8900
Stifel (joint broker)
Erik Anderson/Francis North/Orme Clarke
020 7710
7600
PRELIMINARY RESULTS FOR THE 52 WEEKS ENDED 31 MARCH 2025
OVERVIEW
We've achieved a huge amount as a business in the last 12 months including the
successful integration of City Pub Group into the Young's estate. It has been
a strong year for Young's, despite the ongoing headwinds that continue to be
felt by the whole pub industry, and I'm pleased to announce another excellent
set of results, driven by our well-invested, premium estate that continues to
operate at the highest industry standards.
Total revenue was up 24.9% to £485.8 million, underpinned by a strong
like-for-like performance of 5.7%. This has been driven by continued
investment in our existing estate, supporting both genuine volume and value
growth, combined with the inclusion of full-year City Pub Group revenue for
the first time. Despite the ongoing cost challenges and elements of consumer
uncertainty, our adjusted operating profit, supported by the inclusion of City
Pub Group, was up 24.6% to £71.4 million (2024: £57.3 million), with
adjusted profit before tax up by 4.5% to £51.6 million (2024: £49.4
million). Total profit before tax was £18.1 million (2024: £20.7 million),
primarily due to restructuring costs related to the City Pub Group acquisition
and a small movement in our annual property revaluation.
CITY PUB GROUP INTEGRATION
Since acquiring the City Pub Group in March 2024, our primary focus has been
on integrating the pubs into the Young's estate. The integration is now
complete, with all operational control now under one Young's structure and the
teams aligned as a combined business. When the deal was announced, we outlined
several synergies and operational benefits that we aimed to achieve. We have
delivered the planned £6.1 million annual overhead synergies, now operating
with a single head office and common IT systems. Purchasing synergies have
also progressed well, with new beer supply agreements introduced at the end of
September on conclusion of the existing contracts and harmonisation on food
purchasing completed. We have already achieved operational benefits, and we
continue to approach this process thoughtfully and in line with the
acquisition plan, ensuring we preserve what's great whilst also learning from
the City Pub Group, and leveraging our best-in-class operating practices,
booking platforms and digital technology.
As expected, the integration of the City Pub Group has impacted margins during
the period. Purchasing synergies did not commence until the second half of the
year, and operating profit was impacted by £2.1 million as we maintained two
head office structures during the first quarter and incurred additional
one-off costs such as audit fees. Despite this one-off short-term acquisition
impact, our adjusted operating margin of 14.7% (2024: 14.7%) remains strong
and one of the highest in the sector.
GREAT PUBS OPERATED BY THE BEST PEOPLE
Our success as a business is dependent on having great pubs and the best
people to operate them. I'm constantly impressed by the quality of the teams
we have in place. We focus on providing high-quality training programmes and
development opportunities to give our people the chance to flourish and
further their careers with Young's. That's also why we put so much focus on
succession; nearly 80% of our managers are homegrown, having worked their way
up the career ladder at Young's, as are all our directors of operations,
nearly half of our operations managers and 60% of our chefs.
RECENT TRADING AND OUTLOOK
It's been a fast start to the new financial year. The great weather throughout
April and May has ensured our beautiful pub gardens and riverside locations
have been packed full of customers. This has been further supported by the
Easter weekend falling in April this year, with total sales for the last nine
weeks up 9.4% and up 8.0% on a like-for-like basis.
The year ahead will have challenges, particularly as the National Insurance
increase takes hold, set against an unstable macroeconomic environment.
However, there is plenty for us to be positive about. We will continue to
deliver further operational benefits from the City Pub Group acquisition, our
investment pipeline is strong, and recent trading demonstrates our customers'
desire to enjoy our pubs. Hence, while we remain mindful of the headwinds
facing consumers and the wider issues that our industry will encounter, we are
confident that our premium, well-invested and predominantly freehold pub
estate, supported by our largely UK supply chains, will continue to deliver
profitable growth.
Business review
It has been a strong year for Young's. With the City Pub Group transaction
completing in March 2024, the focus has been on fully integrating the business
into the Young's estate. This has now been completed, with the group operating
under a common IT system and all operational control under one Young's
structure. Supported by the City Pub Group acquisition, total managed house
revenue was up 24.9% to £485.0 million (2024: £388.2 million), and up 5.7%
on a like-for-like basis.
The year started with poor spring weather, compounded by the lack of an Easter
weekend and followed by rain, with the roof on for most of Wimbledon, and very
few prolonged periods of warm summer sunshine. However, EURO24 in June and
July, with England making it all the way to the final of the competition,
brought a welcome boost, driving footfall during key games and ensuring our
pubs, especially those with large gardens, performed exceptionally well. After
the summer, Sunday roast sales became the focus. The return of the Autumn
Rugby Internationals drove sales throughout November, particularly for the
games held at Twickenham, with rooms at our nearby pubs across South West
London well-booked and supported by strong performance across both food and
drink.
Despite the Christmas week falling in such a way that many people went on
their Christmas breaks earlier than usual, December was a very strong month.
Overall, the group set records for both its best week and best single day of
trading ever. Total managed house revenue, reflecting contributions from both
Young's and City Pubs, for the five-week festive period ending 6 January was
up 31.9% and like-for-like sales up 10.9%, with 37 sites recording best-ever
weeks and 30 achieving best-ever days. The key festive days performed
strongly, with combined like-for-like sales covering Christmas Eve, Christmas
Day and Boxing Day up 10.5%. Christmas Day saw £2 million in sales, up £0.2
million on last year and up 9.7% on a like-for-like basis.
The early part of 2025 saw the now typical post-festive slowdown in January
and further poor weather, before the Six Nations returned to boost sales on
otherwise rainy February weekends. Sunny and relatively warm weather in March
provided a welcome start to spring. This, combined with the remaining Six
Nations games, delivered the second highest days for sales during the year.
The momentum continued through March, with the final quarter delivering
like-for-like sales of 7.7%, comfortably outperforming the industry. Total
sales for the final quarter increased by 16.2%, recognising the impact of
lapping the purchase of City Pub Group on 4 March 2024.
CONTINUING GROWTH IN ROOM REVENUE
Total room revenue increased by 30.0% for the period to £30.8 million. This
reflects the additional 228 rooms through the City Pub acquisition, but also
continues the momentum of previous years following the launch of our Young's
Rooms strategy which celebrates the enjoyment and unique experience of staying
in a pub. We continued our investment in pubs with rooms, including schemes at
The Windmill (Clapham), Brewers Inn (Wandsworth), The Huntsman (Brockenhurst)
and Coach and Horses (Kew), which is crucial to support future growth, however
an effective 56-week partial or full closure across period naturally impacted
like-for-like performance. During the period, we delivered an increase of
£1.97 in average room rates with overall RevPAR (revenue per available room)
increasing by £0.66 to £79.03.
Aligned to our Young's Rooms strategy, we increased the number of packages
available to drive experience and pre-booked food and drink sales. 'Summer
Nights' was the focus of our Young's Rooms customer marketing campaign
throughout April to September, with a 'Winter Unwind' campaign running over
the Autumn and Winter months. This was followed by our 'One More Sleep'
occupancy campaign for January and February which sought to drive revenue
across these two historically quieter months. In line with our strategy to
elevate the Young's Rooms brand, we added a further two properties to the Mr
& Mrs Smith collection (Hort's Townhouse - Bristol and The Canford -
Poole), taking our total to five, whilst No.38 The Park (Cheltenham) joined
the esteemed Condé Nast Johansens collection.
CELEBRATING THE PUB WITH AN EXCITING RANGE OF DRINKS
Overall, drink sales were up 25.8%, in part reflecting the added volume of the
City Pub Group, and 6.4% on a like-for-like basis. We continued to look at
ways to invigorate the category, introducing new and exciting beers during the
year including Hawkstone and further roll out of Jubel, as well as several
seasonal local beers. Jubel performed well throughout the year thanks to
activation events held at our larger pubs including the Alma (Wandsworth) and
the Ship (Wandsworth).
Our Spritz summer cocktail menus this year introduced several new drinks to
the Young's bar including Allora Spritz, an aperitivo inspired by Procida,
Italy's island of lemons, and Hugo Spritz, the hugely popular modern classic.
We also elevated our range of lower and alcohol-free drinks to offer customers
greater choice for different summer drinking occasions, with the Elderflower
Elixir, a popular option containing less than one unit of alcohol, and the
Pentire 0.0 Coastal Breeze complementing our already very popular Amalfi
Spritz. That said, Aperol Spritz continued to dominate sales, as expected, and
we achieved full year sales of £4.0 million. Overall, the cocktail category
in Young's pubs delivered year on year growth of 11.2%.
While striving for innovation, we also ensured we stayed true to our cask
heritage, focusing on the quality of our cask ales during the year. As a
result, sales of Young's Original and Special were up by 9.0% and 3.0%, with
Young's seasonal ale Winter Warmer up an impressive 20.7%, all on a
like-for-like basis. Once again, however, it is Guinness growth that leads the
way with total like-for-like sales in Young's pubs up 34.3%, demonstrating
that it is now considered a drink for any occasion or season.
FOOD-LED EVENTS ENHANCING THE PUB EXPERIENCE
Total food sales continued to grow, up 5.0% on a like-for-like basis, 21.8% in
total including City Pubs, and now forms 30.1% of total sales. Our overall
food strategy remains unchanged - to provide premium British seasonal pub
food. Within this, we have several pubs that continue to shine including both
the Oyster Shed (Bank) and Smiths of Smithfield (Farringdon) who have retained
their one rosette. All of our pubs now have an individual food vision and
business plan looking to deliver best in class pub food created at a local
level and most importantly, providing what's right for our guests. To limit
food cost increases, our menus evolve monthly, taking advantage of the best of
British, premium and seasonal ingredients, and working with our suppliers to
ensure the produce on our menus is of the finest quality and best price.
Our Burger Shack menu continued to perform particularly well throughout
summer, especially during busy EURO24 matchdays, whilst also supporting sales
during both the rugby Autumn Internationals and Six Nations competitions. For
January and February, we introduced a new two-and three-course set menu
offering - a first for Young's - boosting like-for-like food sales during the
mid-week period by 10.5% at an otherwise quiet time.
INVESTING IN OUR PEOPLE
Investment in our people has never been so important. Through training and
development and access to the Young's career pathway, we are able to provide
our teams with the necessary skills to help them reach their career goals. The
Ram Agency, launched nearly three years ago and now with over 650 active
employees, plays an important role, firstly by giving team members added
flexibility to choose shifts that suit their requirements, but also helping us
manage our cost base, reducing reliance on agency staff. The in-house agency
brings together people with the necessary skills across a range of roles, from
general managers to chefs to front and back of house team members, trained in
the Young's way of working. It now accounts for 10% of total employees,
covering 31,259 shifts and 259,053 hours across the period. To support profit
growth in the coming fiscal year we plan to implement this across the former
City Pubs estate.
Our two-year graduate programme, introduced in 2023, continues to give
participants the most comprehensive experience of what it means to work at
Young's as they rotate around our different departments, including marketing,
finance, food and property. The Young's apprenticeship scheme has been running
since 2015 and we now have 137 apprentices in teams across both our head
office and our pubs.
We also continue to give back to our communities. During the period, as part
of our long-term relationship with the inspiring Wooden Spoon charity, we
raised £285,000 against our £200,000 target, building on the £200,000
generated by locally supported initiatives last year. Events including
endurance walks, dog pageants, scrum dine with Young's, sustainable fashion
swap shops and supplier-supported supper clubs have fundraised for Natasha's
Allergy Research Foundation, Dogs for Good, School of Hard Knocks, Maddy's
Mark and Pass the Plate.
INVESTMENT
While our focus on maintaining, developing and enhancing our pubs continues,
following completion of the City Pub Group acquisition in March 2024 it was
naturally a quieter period for investment. Nevertheless, we invested £41.0
million in our existing estate and an additional £6.0 million in City Pubs.
We reopened the Red Lion (Radlett) in July after a major scheme that included
a complete redesign and refurbishment of the bar area and full rooms refresh,
creating a pub with rooms that the local area can be proud of. This was
followed by the Libertine (Bournemouth), a pub that we had acquired the
previous year, which has undergone a full refresh and repositioning, opening
in October. Another major scheme completed during the period was the Albert
(Kingston), closed for eight weeks before reopening to showcase a traditional
pub feel, unique touches and a new outside terrace.
In October, we opened the Teller's Arms (Farnham), a former bank transformed
into a beautiful pub with a rooftop terrace and nine boutique bedrooms. The
Tattenham Corner (Epsom), closed since its acquisition last year, opened in
January and immediately performed well ahead of budget. A stone's throw from
the Epsom Downs racecourse and with an amazing garden, the site is set to reap
the benefits of its prime location on race days.
Elsewhere, we completed major schemes at the Hope and Anchor (Brixton),
Brewers Inn (Wandsworth), Windmill (Clapham), Huntsman (Brockenhurst) and
Coach & Horses (Kew). We are committed to delivering every Young's pub to
the very highest standard and have completed other eye-catching smaller
schemes at The Albion (London), Mitre (Lancaster Gate), The Queen's (Primrose
Hill), Grove (Balham), Prince Alfred (Maida Vale) and Bull & Gate (Kentish
Town). All are fine examples of what can be achieved through smaller scale
investment.
During the period, we also started the planned investment in the newly
acquired City Pubs, including investments at the Roundhouse (Wandsworth),
Phene (Chelsea), Georgian Townhouse (Norwich), Market House (Reading),
Pontcanna Inn (Cardiff), Rising Sun (Twickenham), Bow Street Tavern (Covent
Garden) and Three Crowns (Shoreditch). These investments ensured their
elevation to the standards expected of the Young's estate alongside
recognising improved trading opportunities.
Within the City Pub Group, we also invested to increase our shareholding of
two subsidiary companies. These subsidiaries hold six pubs under the City Pub
estate with external shareholders held under an existing EIS.
Following the planned disposal of nine pubs, the sale of a non-trading pub and
the simultaneous sale and surrender of a lease on a non-trading pub, we
finished the period with a total of 277 pubs (2024: 288), including 56 pubs
with rooms, providing a total of 1,063 bedrooms.
OTHER KEY AREAS
Property
Our balance sheet strength continues to underpin the ongoing development of
our predominantly freehold estate in many highly desirable locations across
London and the South of England. We have continued to add value to this estate
during the year, and the total now stands at £1,042.1 million (2024:
£1,036.9 million).
79% of our 277 pubs are freehold or long leaseholds with peppercorn rents. The
carrying value of property leases, including long leaseholds, is separately
recognised as right-of-use assets in note 11. Each year we revalue our pub
estate to reflect current market values. Savills, an independent and leading
commercial property adviser, has revalued all our freehold properties. The
valuation method used several inputs and the sustainable level of trade of
each pub remained key.
In accordance with UK-adopted international accounting standards, individual
increases in value have been reflected in the revaluation reserve on the
balance sheet (except to the extent that they had previously been revalued
downwards) and individual falls in value below depreciated cost have been
accounted for through the income statement. None of these adjustments have a
cash impact.
Despite the continued pressures the hospitality industry is facing, the pub
property market has remained resilient. At a group level, we have seen a net
downward revaluation movement of £7.4 million (2024: upward revaluation
movement of £10.1 million), equal to less than 1% movement in the total value
of our pub estate. This comprises an upward movement of £14.4 million (2024:
£22.9 million) reflected in the revaluation reserve, and a downward movement
of £21.8 million (2024: £12.8 million) as a result of movements in pub
EBITDA multiples, recognised as an adjusting item in the income statement. The
net downward revaluation movement of £7.4 million is split between an upward
revaluation movement of £1.3 million relating to the City Pub estate, and a
downward revaluation movement of £8.7 million relating to the Young's estate.
The City Pub estate has not yet built up a revaluation reserve, therefore any
downward movement is recognised as an adjusting item in the income statement
rather than through the revaluation reserve.
Treasury and going concern
At the period end, the group had committed borrowing facilities of £335.0
million, and in addition to these we maintain a £12.0 million overdraft
facility with HSBC. Our net debt (pre-IFRS 16) reduced by £19.5 million to
£248.3 million (2024: £267.8 million), driven by continued strong cash
generation of the combined business and the planned disposal of nine trading
pubs. Our net debt sits at £336.3 million (2024: £359.6 million). Our net
debt to adjusted EBITDA (pre-IFRS 16) ratio has reduced to 2.4 times (2024:
3.2 times), whilst net debt to adjusted EBITDA ratio has reduced to 3.0 times
(2024: 3.9 times).
While our pubs continue to trade very well, it remains prudent to recognise a
small degree of uncertainty ahead due to any potential slowdown in consumer
spending and general macroeconomic conditions that could influence future
profitability. 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 (ending 29 June 2026).
The key judgements applied are the extent of any influence on trade because of
the economic uncertainty and its impact on consumers, and the continued cost
pressures faced by the hospitality industry.
The base case model assumes the group continues to trade as now while
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 23% in profit across the period. This aims to capture the
potential slowdown in consumer spending or restrictions on trade. The cost
inflation scenario includes an average 5% increase in the food cost base, c.5%
increase in labour and 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 significant headroom on the group's debt facilities, and
all banking covenants are fully complied with throughout the going concern
period.
The reverse stress 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 (the former being the main stress point given the
debt headroom). There would need to be a sales reduction of c.35% and profit
reduction of c.55% between July 2025 and June 2026 compared to the base case,
a reduction far more than those experienced historically (except for the
restricted covid-19 period), before there is a breach of financial covenants
in the period, and this 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 the
group can manage its business risks and therefore continue in operational
existence for the going concern period. For this reason, the group continues
to adopt the going concern basis in preparing its financial statements.
Retirement benefits
We have a defined benefit pension scheme which has been closed to new entrants
since 2003. During the year, our pension scheme surplus has decreased by £4.4
million to a deficit £4.3 million, driven by a decrease in the return on the
scheme's assets. We have continued our commitment with another year of special
contributions, totalling £1.9 million, and remain fully committed to ensuring
the pension scheme is adequately funded.
Adjusting items
Total adjusting items were £33.5 million in the period (2024: £28.7
million), which largely relate to a net downward movement in property
revaluation of £21.8 million combined with general restructuring and
integration costs relating to the acquisition of the City Pub Group totalling
£4.4 million. Net gains on the disposal of property and subsidiaries within
the period were £1.4 million, and an impairment charge of £8.2 million
related to right-of-use assets.
Tax
A tax charge of £8.1 million (2024: £9.6 million) was recognised for the
year. The effective tax rate was 44.8% (2024: 46.6%) compared to the statutory
rate of 25%, with the difference primarily driven by adjusting items not
deductible for tax purposes. Further detail can be found in note 7.
Shareholder returns
Young's is a long-standing business that started life in 1831 and we are
determined to maintain our long-term, sustainable growth story. Our top-line
trading performance has flowed through to strong profit conversion and cash
generation. Adjusted earnings per share are 61.84 pence (2024: 62.97 pence).
On an unadjusted basis, the earnings per share are 16.10 pence (2024: 18.89
pence). Reflecting our strong profit performance and positive outlook, we are
pleased to recommend a final dividend of 11.53 pence and, if approved by
shareholders, this will give a total dividend for the year of 23.06 pence, up
6% on last year (2024: 21.76 pence).
Simon Dodd
Chief Executive
4 June 2025
GROUP INCOME STATEMENT
For the 52 weeks ended 31 March 2025
2025 2024
Notes £m £m
Revenue 5 485.8 388.8
Operating costs before adjusting items (414.4) (331.5)
Adjusted operating profit 71.4 57.3
Adjusting items 3 (33.5) (28.7)
Operating profit 37.9 28.6
Finance costs 6 (19.9) (8.1)
Finance income for pension obligations 0.1 0.2
Profit before tax 18.1 20.7
Income tax expense 7 (8.1) (9.6)
Profit for the period attributable to shareholders of the parent company 10.0 11.1
Attributable to:
Shareholders of the parent company 9.8 11.1
Non-controlling interests 0.2 -
10.0 11.1
Pence Pence
Earnings per 12.5p ordinary share
Basic 9 16.10 18.89
Diluted 9 16.10 18.88
GROUP STATEMENT OF COMPREHENSIVE INCOME
For the 52 weeks ended 31 March 2025
2025 2024
Notes £m £m
Profit for the period 10.0 11.1
Other comprehensive income
Items that will not be reclassified subsequently to profit or loss:
Unrealised gain on revaluation of property 10 14.4 22.9
Remeasurement of retirement benefit schemes 12 (7.3) (5.3)
Tax on above components of other comprehensive income (1.5) (6.1)
Items that will be reclassified subsequently to profit or loss:
Fair value movement of interest rate swaps (1.7) (2.1)
Tax on fair value movement of interest rate swaps 0.5 0.5
4.4 9.9
Total comprehensive income attributable to shareholders of the parent company
14.4 21.0
Attributable to:
Shareholders of the parent company 14.3 21.0
Non-controlling interests 0.1 -
14.4 21.0
GROUP BALANCE SHEET
At 31 March 2025
Restated
2025 2024
Notes £m £m
Non-current assets
Goodwill 77.1 77.4
Property and equipment 10 1,042.1 1,036.9
Investment properties 3.8 4.3
Right-of-use assets 11 161.9 183.2
Trade and other receivables 0.9 -
Derivative financial instruments - 2.9
Retirement benefit schemes 12 - 1.8
1,285.8 1,306.5
Current assets
Inventories 6.6 6.5
Trade and other receivables 12.6 15.9
Income tax receivable 0.7 5.0
Derivative financial instruments 1.1 0.2
Cash 7.5 16.9
28.5 44.5
Asset held for sale - 2.2
28.5 46.7
Total assets 1,314.3 1,353.2
Current liabilities
Borrowings(1) (20.0) -
Bank overdrafts (3.3) -
Lease liabilities 13 (6.3) (6.8)
Trade and other payables (62.9) (69.7)
(92.5) (76.5)
Non-current liabilities
Borrowings(1) (232.5) (284.7)
Lease liabilities 13 (81.7) (85.0)
Derivative financial instruments (0.1) (0.2)
Deferred tax liabilities 14 (128.8) (129.9)
Retirement benefit schemes 12 (4.3) (1.7)
(447.4) (501.5)
Total liabilities (539.9) (578.0)
Net assets 774.4 775.2
Capital and reserves
Share capital 7.8 7.8
Share premium 7.8 7.8
Other reserves 38.0 38.0
Hedging reserve 1.2 2.4
Revaluation reserve 289.2 277.6
Retained earnings 427.8 438.0
771.8 771.6
Non-controlling interests 2.6 3.6
Total equity 774.4 775.2
( )
(1) As a result of the amendments to IAS 1, current borrowings for the period
ended 1 April 2024 have been re-classified as non-current borrowings. Refer to
note 1 for further detail.
Approved by the board of directors and signed on its behalf by:
Simon Dodd Chief Executive Officer
Michael Owen Chief Financial Officer
4 June 2024
Young & Co.'s Brewery, P.L.C. Registered in England number 00032762.
GROUP STATEMENT OF CASH FLOWS
For the 52 weeks ended 31 March 2025
2025 2024
Notes £m £m
Operating activities
Net cash generated from operations 16 103.8 86.0
Tax paid (5.5) (12.6)
Net cash flows from operating activities 98.3 73.4
Investing activities
Proceeds from disposal of property and equipment(1)
6.8 3.3
Purchase of property and equipment 10 (47.0) (48.5)
Business combinations, net of cash acquired - (144.5)
Direct costs incurred in acquisition of leases - (9.9)
Disposal of subsidiary shareholding(2) 2.3 -
Net cash used in investing activities (37.9) (199.6)
Financing activities
Interest paid (19.1) (7.5)
Equity dividends paid 8 (14.0) (12.4)
Acquisition of additional shareholding in subsidiaries(2) (0.8) -
Payment of principal portion of lease liabilities 13 (6.2) (6.1)
Repayment of borrowings(3) (62.0) (41.1)
Transaction costs incurred on borrowings (0.5) (2.0)
Proceeds from borrowings(4) 29.5 201.5
Net cash flows used in financing activities (73.1) 132.4
Net (decrease)/increase in cash (12.7) 6.2
Cash at the beginning of the period 16.9 10.7
Cash at the end of the period 4.2 16.9
(1) During the current 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). During the prior period to 1 April 2024, £3.3 million related to
the sale of the Salt Room (Islington).
(2) During the current period to 31 March 2025, 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. In addition,
during the current 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.
(3) During the current 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. During the
prior period to 1 April 2024, the group repaid their £20.0 million term loan
with Barclays and HSBC, and the City Pub Group's £21.1 million term loan.
(4) During the prior period to 1 April 2024, the group entered into three new
facilities: a £110.0 million term loan, £20 million term loan and £120
million RCF all equally split with HSBC, NatWest and Barclays. The group then
drew down £71.5 million on the Revolving Credit Facility.
GROUP STATEMENT OF CHANGES IN EQUITY
For the 52 weeks ended 31 March 2025
Non-controlling
Share Other Hedging Revaluation Retained Total
capital(1) reserves reserve reserve earnings interests equity
Notes £m £m £m £m £m £m £m
At 3 April 2023 15.1 1.8 4.0 260.9 442.4 - 724.2
Total comprehensive income
Profit for the period - - - - 11.1 - 11.1
Other comprehensive income
Unrealised gain on revaluation of property
10 - - - 22.9 - - 22.9
Remeasurement of retirement benefit schemes
12 - - - - (5.3) - (5.3)
Net movement of interest rate swaps - cash flow hedge - - (2.1) - - - (2.1)
Tax on above components of other comprehensive income
- - 0.5 (6.1) - - (5.6)
- - (1.6) 16.8 (5.3) - 9.9
Total comprehensive income - - (1.6) 16.8 5.8 - 21.0
Transactions with owners recorded directly in equity
Share capital issued(2) 0.5 - - - - - 0.5
Other reserves(2) - 36.2 - - - - 36.2
IFRIC 14 adjustment - - - - 1.4 - 1.4
Non-controlling interests on acquisition of subsidiary - - - - - 3.6 3.6
Dividends paid on equity shares 8 - - - - (12.4) - (12.4)
Revaluation reserve realised on disposal of properties
- - - (0.1) 0.1 - -
Share based payments - - - - 0.7 - 0.7
0.5 36.2 - (0.1) (10.2) 3.6 30.0
-
At 1 April 2024 15.6 38.0 2.4 277.6 438.0 3.6 775.2
Total comprehensive income
Profit for the period - - - - 9.8 0.2 10.0
Other comprehensive income
Unrealised gain on revaluation of property 10 - - - 14.3 - 0.1 14.4
Remeasurement of retirement benefit schemes
12 - - - - (7.3) - (7.3)
Net movement of interest rate swaps - cash flow hedge - - (1.7) - - - (1.7)
Tax on above components of other
comprehensive income - - 0.5 (2.7) 1.2 - (1.0)
- - (1.2) 11.6 (6.1) 0.1 4.4
Total comprehensive income - - (1.2) 11.6 3.7 0.3 14.4
Transactions with owners recorded directly in equity
Movements in non-controlling interests - - - - (0.1) (1.3) (1.4)
Dividends paid on equity shares 8 - - - - (14.0) - (14.0)
Share based payments - - - - 0.2 - 0.2
- - - - (13.9) (1.3) (15.2)
At 31 March 2025 15.6 38.0 1.2 289.2 427.8 2.6 774.4
(1) Total share capital comprises the nominal value of the share capital
issued and fully paid of £7.8 million (2024: £7.8 million) and the share
premium account of £7.8 million (2024: £7.8 million). Share capital issued
in the period comprises the nominal value of £nil (2024: £0.5 million) and
share premium of £nil (2024: £nil).
2 During the prior period to 1 April 2024, 3,612,240 shares were issued as
part of the acquisition of the City Pub Group. The group recognised £0.5
million increase in share capital. As the acquisition was eligible for merger
relief, £36.2 million was recognised in other reserves to reflect the value
of the share premium that would otherwise have been generated on the issuing
of the shares.
NOTES TO THE FINANCIAL STATEMENTS
For the 52 weeks ended 31 March 2025
1. General information
This preliminary announcement was approved by the board on 4 June 2025. The
financial statements in it are not the group's statutory financial statements.
The statutory financial statements for the period ended 31 March 2025 have
been delivered to the Registrar of Companies. The report for the 2025 accounts
was (i) unqualified, (ii) did not contain any matter to which the auditor drew
attention by way of emphasis without modifying its opinion and (iii) did not
contain a statement under s.498(2) or (3) of the Companies Act 2006. The
statutory financial statements for the period ended 31 March 2025 will be
delivered to the Registrar of Companies in due course.
The current period and prior period relate to the 52 weeks ended 31 March 2025
and 1 April 2024 respectively.
The financial statements are presented in pounds sterling, which is the
functional currency of the parent company, and all values are rounded to the
nearest hundred thousand (£0.1 million), except where otherwise indicated.
This preliminary announcement has been agreed with the company's auditor for
release.
The group and parent company financial statements have been prepared in
accordance with UK adopted international accounting standards and the
requirements of the Companies Act 2006. The accounting policies used have been
consistently applied and are described in full in the statutory financial
statements for the period ended 31 March 2025. The financial statements will
also be available on the group's website, www.youngs.co.uk
(https://protect.checkpoint.com/v2/___http:/www.youngs.co.uk___.bXQtcHJvZC1jcC1ldXcyLTE6bmV4dDE1OmM6bzphODVmYjY0MzAyM2I2NDNiZGNjNjBkNDNmZjllNjY4Mjo2OjZmYmE6ZmMyZDdhN2RhMTRlOGJhNmJiNjEzZDFjZDIzZWNmODlkMzk2OTMzZTZjOWUyMTEyZTNlMjQ0ZTkwZWQ2NTYyMTpwOkY6Tg)
.
Going concern
At 31 March 2025, the group had cash in bank of £7.5 million and a current
overdraft of £3.3 million, and committed borrowing facilities of £335.0
million, of which £255 million was drawn down. The group expects, during the
period to 29 June 2026 (the 'going concern' period), to have available
facilities of £315.0 million, with one tranche of debt, the £20 million term
loan, maturing during November 2025, which the directors' have assumed is
repaid in the going concern models. 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
annual operating budget to March 2026 as well as the strategic plan covering
April to June 2026. The key judgements applied are the extent of any influence
on trade because of 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, while
reflecting the inflationary environment, largely relating to labour costs,
that currently exists across the going concern period. The general reduction
in trade scenario looks at a decline of 15% in sales and 23% in pub EBITDA
across the period. The cost inflation scenario includes an average 5% increase
in the food cost base and 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
July 2025 and June 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.
Amendments to accounting standards
Amendments to accounting standards applied for the first time during the
period were as follows:
(· ) Amendments to IAS 1 - classification of liabilities as
current or non-current.
The effect of this amendment is outlined below.
Prior period restatement
These consolidated financial statements include 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 £71.5
million and increases non-current liabilities by £71.5 million as at 1 April
2024.
2. Segmental reporting
In line with the requirements of IFRS 8 Operating Segments, the group is
organised into one reporting segment, that of operating managed houses. This
is in line with the internal reporting to the executive board of the group for
the purpose of deciding on the allocation of resources and assessing
performance. The remaining tenanted houses are grouped together with the
unallocated segment and reported as 'all other segments'.
Total segment revenue is derived externally, with no intersegment revenues
between the segments in the period. The group's revenue is derived entirely
from the UK.
Income statement Managed All other
houses segments Total
2025 £m £m £m
Drink sales 305.5 - 305.5
Food sales 146.3 - 146.3
Accommodation sales 30.8 - 30.8
Total revenue from contracts with customers 482.6 - 482.6
Other income 2.4 0.8 3.2
Total revenue recognised 485.0 0.8 485.8
Adjusted operating profit/(loss) 97.6 (26.2) 71.4
Adjusting items (32.6) (0.9) (33.5)
Operating profit/(loss) 65.0 (27.1) 37.9
Managed All other
houses segments Total
2024 £m £m £m
Drink sales 242.9 - 242.9
Food sales 120.1 - 120.1
Accommodation sales 23.7 - 23.7
Total revenue from contracts with customers 386.7 - 386.7
Other income 1.5 0.6 2.1
Total revenue recognised 388.2 0.6 388.8
Adjusted operating profit/(loss) 79.1 (21.8) 57.3
Adjusting items (28.6) (0.1) (28.7)
Operating profit/(loss) 50.5 (21.9) 28.6
3. Adjusting items
During the period the cash flow impact of adjusting items was £4.6 million
(2024: £5.8 million), of which £9.1 million related to investing activities
and £4.5 million related to operating activities (2024: £5.1 million and
£0.7 million respectively).
2025 2024
£m £m
Amounts included in operating profit:
Upward movement on the revaluation of properties (note 10)(1) 3.8 2.9
Downward movement on the revaluation of properties (note 10)(1) (25.6) (15.7)
Restructuring costs(2) (3.2) (0.1)
Purchase costs - City Pub Group(3) (0.9) (6.2)
Integration costs - City Pub Group(4) (0.3) -
Net loss on disposal of properties(5) (0.3) (1.3)
Gain on disposal of subsidiary(6) 1.7 -
Impairment loss(7) (8.7) (5.5)
Purchase costs(8) - (2.2)
Tenant compensation(9) - (0.6)
(33.5) (28.7)
Tax on adjusting items:
Tax attributable to adjusting items 5.1 2.8
Total adjusting items after tax (28.4) (25.9)
1 The movement on the revaluation of properties is a non-cash item
that relates to the revaluation exercise that was completed at the period end
date. The revaluation was conducted at an individual pub level and identified
an upward movement of £3.8 million (2024: £2.9 million) representing
reversals of previous impairments recognised in the income statement, and a
downward movement of £25.6 million (2024: £15.7 million), representing
downward movements in excess of amounts recognised in equity. These resulted
in a net downward movement of £21.8 million (2024: a net downward movement of
£12.8 million) which has been recognised in the income statement. The
downward movement for the period ended 31 March 2025 was split between land
and buildings of £21.8 million (2024: £12.8 million downward) and fixtures
and fittings of £nil (2024: £nil). See note 10 for information on the
revaluation of properties.
2 Restructuring costs related to severance costs paid to employees
of City Pub Group. £1.7 million of the restructuring costs recognised in the
current period relate to payments made relating to the prior period. These are
not considered to be either on a standalone basis, or also in combination with
the correction detailed in Note 6, quantitatively or qualitatively material to
either the current or prior period financial statements, and therefore, in
accordance with IAS 8, the prior period has not been restated. In the prior
period, restructuring costs related to severance costs paid to employees of
one of the acquired business combinations.
3 Of the purchase costs recognised in the current period, £0.4
million relate to payments made in the prior period. These are not considered
to be either on a standalone basis, or also in combination with the correction
detailed in Note 6, quantitatively or qualitatively material to either the
current or prior period financial statements, and therefore in accordance with
IAS 8, the prior period has not been restated.
4 Integration costs related to the integration of City Pub Group, to
align with the rest of the group's operations to achieve common synergies.
5 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. In the prior period, the
profit on disposal of properties related to the difference between cash, less
disposal costs, received from the sale of the Salt Room (Islington) and the
carrying value of its assets, including goodwill, at the date of disposal. In
addition, during the prior period the loss on disposal of properties related
to the difference between the value of right-of-use assets and lease
liabilities of the old leases of the Guinea Grill (Mayfair), Wheatsheaf
(Esher), Coat & Badge (Putney) and the Fellow (King's Cross), which were
replaced with new leases in the period. The profit on disposal of properties
also included the loss on reclassification of two properties to asset held for
sale.
6 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.
7 Impairment losses of £8.2 million were recognised in relation to
right-of-use assets and £0.5 million in relation to investment properties
(2024: £1.7 million in relation to goodwill and £3.8 million in relation to
right-of-use assets). See note 11.
8 In the prior period, costs related to professional fees and stamp
duty land tax arising on the purchase of the Libertine (Westbourne), White
Hart (Ford), White Lion (Tenterden), Huntsman (Brockenhurst), Ship Inn (Noss
Mayo) and the Tattenham Corner (Epsom). These included legal and professional
fees and stamp duty land tax. See note 15.
9 In the prior period, tenant compensation was paid to previous
tenants of the Clapham North (Clapham) and the King's Head Theatre (Islington)
and related to the termination of their leases.
4. Other financial measures
The tables below shows how adjusted and pre- and post-IFRS 16 group EBITDA,
operating profit and profit before tax have been arrived at. They exclude
adjusting items which, in management's view due to their material or
non-recurring nature, do not form part of the group's underlying operations.
These alternative performance measures have been provided to help investors
assess the group's underlying performance. Details of the adjusting items can
be seen in note 3.
2025 2024
Adjusting Adjusting
Unadjusted items Adjusted Unadjusted items Adjusted
£m £m £m £m £m £m
EBITDA 101.9 11.7(1) 113.6 76.3 15.9(1) 92.2
Depreciation and net movement on the revaluation of properties (64.0) 21.8 (42.2) (47.7) 12.8 (34.9)
Operating profit 37.9 33.5 71.4 28.6 28.7 57.3
Finance costs (19.9) - (19.9) (8.1) - (8.1)
Finance income for pension obligations 0.1 - 0.1 0.2 - 0.2
Profit before tax 18.1 33.5 51.6 20.7 28.7 49.4
(1)Included within adjusting items of £11.7 million (2024: £15.9 million) is
an impairment of £8.7 million (2024: £5.5
million).
( )
2025 2024
£m £m
Post-IFRS 16 EBITDA 113.6 92.2
Payments of lease liabilities (note 13) (10.3) (8.9)
Pre-IFRS 16 EBITDA 103.3 83.3
5. Revenue
The recognition of revenue under each of the group's material revenue streams
is as follows:
2025 2024
£m £m
Drink sales 305.5 242.9
Food sales 146.3 120.1
Accommodation sales 30.8 23.7
Total revenue from contracts with customers 482.6 386.7
Other income 3.2 2.1
Total revenue recognised 485.8 388.8
6. Finance costs
2025 2024
£m £m
Interest on bank loans and overdrafts 15.8 5.3
Interest on lease liabilities 4.1 2.8
19.9 8.1
7. Taxation
The major components of income tax expense for the periods ended 31 March 2025
and 1 April 2024 are:
2025 2024
Tax charged in the group income statement £m £m
Current income tax
Current tax expense 9.5 8.4
Adjustment in respect of current income tax of prior periods 0.3 (1.4)
9.8 7.0
Deferred tax
Relating to origin and reversal of temporary differences (1.2) 1.5
Adjustment in respect of deferred tax of prior periods (0.5) 1.1
(1.7) 2.6
Income tax charged in the income statement 8.1 9.6
A reconciliation of the tax expense at the group's effective tax rate to the
accounting profit before tax at the statutory tax rate for the periods ended
31 March 2025 and 1 April 2024 respectively is as follows:
2025 2024
52 weeks 52 weeks
£m £m
Accounting profit before income tax 18.1 20.7
At the group's statutory income tax rate of 25% (2024: 25%) 4.5 5.2
Tax effects of:
Expenses not deductible for tax purposes(1) 3.8 4.7
Prior period adjustment - current tax 0.3 (1.4)
Prior period adjustment - deferred tax(2) (0.5) 1.1
Total tax expense 8.1 9.6
( )
(1) The largest component of expenses not deductible for tax purposes (£4.4
million) is depreciation, amortisation, and impairment of assets which is
non-deductible in the computation of current tax expense and for which there
is only partial (or no) deferred tax offset. Expenses not deductible for tax
purposes also includes the effect of gains on disposal of shares and
properties, property acquisition costs, and share based payments.
(2) Included within prior period adjustment is £0.9 million of deferred tax
recognised in error in the prior year relating to right-of-use assets
recognised on acquisition of The City Pub Group. This balance has been
corrected in the current period, resulting in a deferred tax expense of £0.9
million in the year. The impact of this correction on a standalone basis, and
also in combination with the corrections detailed in note 3, is not considered
to be either quantitatively or qualitatively material to either the current or
prior period financial statements, and therefore in accordance with IAS 8, the
prior period has not been restated.
8. Dividends on equity shares
2025 2024 2025 2024
Pence per share Pence per share £m £m
Final dividend paid (previous period) 10.88 10.26 6.8 6.0
Interim dividend paid (current period) 11.53 10.88 7.2 6.4
22.41 21.14 14.0 12.4
The table above sets out dividends that have been paid. In addition, the board
is proposing a final dividend in respect of the period ended 31 March 2025 of
11.53 pence per share at a cost of £7.2 million. If approved, it is expected
to be paid on 17 July 2025 to shareholders who are on the register of members
at the close of business on 13 June 2025.
9. Earnings per ordinary share
(a) Weighted average number of shares 2025 2024
Number Number
Basic weighted average number of ordinary shares in issue 62,096,842 58,762,467
Dilutive potential ordinary shares from employee share options 20,349 36,547
Diluted weighted average number of shares 62,117,191 58,799,013
(b) Earnings attributable to the shareholders of the parent company
£m £m
Profit for the period 10.0 11.1
Adjusting items 33.5 28.7
Tax attributable to above adjustments (5.1) (2.8)
Adjusted earnings after tax 38.4 37.0
Basic earnings per share
Pence Pence
Basic 16.10 18.89
Effect of adjusting items 45.74 44.08
Adjusted basic earnings per share 61.84 62.97
Diluted earnings per share
Pence Pence
Diluted 16.10 18.88
Effect of adjusting items 45.72 44.05
Adjusted diluted earnings per share 61.82 62.93
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 20,349 (2024: 36,547) dilutive potential shares under the 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.
10. Property and equipment
Fixtures,
Land & fittings &
buildings equipment Total
Cost or valuation £m £m £m
At 3 April 2023 784.1 162.2 946.3
Additions 8.3 40.2 48.5
Business combinations 146.3 22.7 169.0
Disposals (3.0) (0.4) (3.4)
Transfers out to asset held for sale (2.5) (0.5) (3.0)
Fully depreciated assets (2.3) (21.9) (24.2)
Revaluation(1)
- upward movement in valuation 42.8 - 42.8
- downward movement in valuation (20.4) - (20.4)
At 1 April 2024 953.3 202.3 1,155.6
Additions 8.3 38.7 47.0
Disposals (7.9) (1.4) (9.3)
Transfer from right-of-use assets(2) 3.2 0.4 3.6
Fully depreciated assets (0.7) (23.5) (24.2)
Revaluation(1)
- upward movement in valuation 41.2 - 41.2
- downward movement in valuation (27.4) - (27.4)
At 31 March 2025 970.0 216.5 1,186.5
Depreciation and impairment
At 3 April 2023 28.0 75.8 103.8
Depreciation charge 1.6 26.0 27.6
Disposals(3) - (0.1) (0.1)
Transfers out to asset held for sale (0.5) (0.2) (0.7)
Fully depreciated assets (2.3) (21.9) (24.2)
Revaluation(1)
- upward movement in valuation (3.4) - (3.4)
- downward movement in valuation 15.7 - 15.7
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(1)
- upward movement in valuation (4.4) - (4.4)
- downward movement in valuation 25.6 - 25.6
At 31 March 2025 57.5 86.9 144.4
Net book value
At 3 April 2023 756.1 86.4 842.5
At 1 April 2024 914.2 122.7 1,036.9
At 31 March 2025 912.5 129.6 1,042.1
(1) The group's net book value impairment during the period was £7.4 million
(2024: an uplift of £10.1 million). This impairment was recognised either in
the revaluation reserve or the income statement, as appropriate.
(2) During the current period the group acquired the freehold interest in the
Stag (Belsize Park), which was initially acquired as a leasehold during the
prior period.
(3) Included within disposals are £nil (2024: £3.0 million) in relation to
assets classified as held for sale and disposed of before the period end date.
The impact of the property revaluation exercise was as follows: 2025 2024
£m £m
Income statement
Revaluation loss charged as impairment (25.6) (15.7)
Reversal of past impairment 3.8 2.9
Net impairment recognised in the income statement (21.8) (12.8)
Revaluation reserve
Unrealised revaluation surplus 41.8 43.3
Reversal of past surplus (27.4) (20.4)
Net uplift recognised in the revaluation reserve 14.4 22.9
Net revaluation increase in property (7.4) 10.1
11. Right-of-use assets
Set out below are the carrying amounts of right-of-use assets recognised and
the movements during the period:
Motor
Property vehicles Total
£m £m £m
At 3 April 2023 142.5 0.6 143.1
Additions 22.9 0.9 23.8
Business combinations 33.5 - 33.5
Lease amendments 1.4 - 1.4
Impairments (3.8) - (3.8)
Lease terminations (7.0) (0.3) (7.3)
Depreciation (7.2) (0.3) (7.3)
At 1 April 2024 182.3 0.9 183.2
Additions 0.2 0.4 0.6
Lease amendments 2.5 - 2.5
Impairments (8.2) - (8.2)
Lease terminations (3.5) - (3.5)
Transfer out of right-of-use assets (3.6) - (3.6)
Depreciation (8.7) (0.4) (9.1)
At 31 March 2025 161.0 0.9 161.9
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. An impairment of £8.2 million was recognised in the income statement
during the current period (2024: £3.8 million).
12. Retirement benefit schemes
Movement within the schemes in the period
Changes in the present value of the schemes are as follows:
2025 2024
Health Health
Pension care Pension care
scheme scheme Total scheme scheme Total
£m £m £m £m £m £m
Opening surplus/(deficit) 2.4 (1.7) 0.7 5.4 (1.7) 3.7
Current service cost (0.1) - (0.1) (0.1) - (0.1)
Contributions 2.1 0.2 2.3 1.4 0.2 1.6
Other finance income/(charge) 0.2 (0.1) 0.1 0.3 (0.1) 0.2
Remeasurement through other
comprehensive income (7.2) (0.1) (7.3) (4.6) (0.1) (4.7)
(2.6) (1.7) (4.3) 2.4 (1.7) 0.7
IFRIC 14 adjustment - - - (0.6) - (0.6)
Closing surplus/(deficit) (2.6) (1.7) (4.3) 1.8 (1.7) 0.1
13. Lease liabilities
Set out below are the carrying amounts of lease liabilities and the movements
during the period:
£m
At 3 April 2023 71.7
Additions 13.9
Business combinations 16.7
Lease amendments 1.4
Accretions of interest 2.8
Payments (8.9)
Lease terminations (5.8)
At 1 April 2024 91.8
Current 6.8
Non-current 85.0
At 1 April 2024 91.8
Additions 0.6
Lease amendments 2.5
Accretions of interest 4.1
Payments (10.3)
Lease terminations (0.7)
At 31 March 2025 88.0
Current 6.3
Non-current 81.7
14. Deferred tax
Deferred tax relates to the following:
2025 2024
Deferred tax assets £m £m
Capital losses 0.7 -
Decelerated capital allowance - 0.6
Retirement benefit schemes 1.1 0.4
Tax losses 2.2 3.2
Shared based payments 0.3 0.3
Deferred tax assets 4.3 4.5
Deferred tax liabilities
Rolled over gains and property revaluations (130.9) (111.6)
Retirement benefit schemes - -
Accelerated capital allowance (1.9) (2.5)
Interest rate swaps - cash flow hedge (0.3) (0.7)
Fair value gains on acquisition of subsidiaries - (19.6)
Deferred tax liabilities (133.1) (134.4)
Net deferred tax liabilities (128.8) (129.9)
15. Business combinations
Acquisitions in 2024
The City Pub Group
On 4 March 2024, the group acquired the entire issued share capital of the
City Pub Group, a premium pub and hotel operator. The total consideration was
£158.0 million, of which £121.3 million was paid in cash and £36.7 million
was settled in shares. The final fair value of the identifiable assets and
liabilities recognised on acquisition were £115.0 million. Goodwill of £46.6
million was recognised on the acquisition. The group incurred £6.2 million of
costs associated with the acquisition, which were recorded within adjusting
items (note 3). In the current period to 31 March, the group incurred £0.9
million of additional costs associated with the acquisition, which were
recorded within adjusting items (note 3).
Crooked Billet
On 31 October 2023, the group acquired the entire issued share capital of
Crooked Billet Limited, a subsidiary company which owns and operates the
Crooked Billet (Clapton) for a total cash consideration of £7.3 million. The
final fair value of the identifiable assets and liabilities recognised on
acquisition were £7.3 million. No goodwill was recognised on the acquisition
as the fair value of the net assets acquired was equal to the cash
consideration exchanged. The group incurred £0.7 million of costs associated
with the acquisition, which were recorded within adjusting items (note 3).
In the prior period to 1 April 2024, the group acquired the Libertine
(Westbourne), White Hart (Ford), White Lion (Tenterden), Huntsman
(Brockenhurst), Ship Inn (Noss Mayo) and the Tattenham Corner (Epsom), which
formed business combinations for a total cash consideration of £25.8 million,
which was settled during the prior period. Each pub was purchased individually
and did not form part of a group acquisition. The final aggregated fair value
of the identifiable assets and liabilities of the acquired businesses were
property and equipment of £25.8 million. The group incurred £1.5 million of
costs associated with the acquisitions, which were recorded within adjusting
items (see note 3).
Other acquisitions
During the period the group acquired an unlicensed property (Wandsworth) as an
asset acquisition for a total cash consideration of £0.4 million. During the
period the group acquired a previously held leasehold property for a total
cash consideration of £0.1 million.
Cash flow from business combinations
2025 2024
£m £m
City Pub Group - (111.4)
Crooked Billet - (7.3)
Other business combinations - (25.8)
Total net cash outflow - (144.5)
16. Net cash generated from operations and analysis of net debt
2025 2024
£m £m
Profit before tax 18.1 20.7
Net finance cost 19.9 8.1
Finance charge for pension obligations (0.1) (0.2)
Operating profit 37.9 28.6
Depreciation of property and equipment 33.1 27.6
Movement on revaluation of properties 21.8 12.8
Depreciation of right-of-use assets 9.1 7.3
Impairment of investment properties and right-of-use assets 8.7 5.5
Net loss on disposal of property 0.3 1.3
Net gain on disposal of subsidiaries (1.7) -
Difference between pension service cost and cash contributions paid (2.2) (1.4)
Share based payments (0.2) (0.7)
Movements in working capital
- Inventories (0.1) 0.1
- Receivables 1.7 0.5
- Payables (4.6) 4.4
Net cash generated from operations 103.8 86.0
Restated
2025 2024
£m £m
Cash 7.5 16.9
Bank overdrafts (3.3) -
Net cash 4.2 16.9
Current borrowings and loan capital (20.0) -
Non-current borrowings and loan capital (232.5) (284.7)
Net debt (pre-IFRS 16) 248.3 267.8
Current lease liability (6.3) (6.8)
Non-current lease liability (81.7) (85.0)
Net debt (336.3) (359.6)
17. Post balance sheet events
On 22 April 2025, the group acquired the remaining 50% ownership in the
Brading Group Limited, which owns the Queen of the South (Norwood), for a
total cash consideration of £1.7 million. The assessment of the impact of
this transition in accordance with IFRS 3 is ongoing as at the date of
approval of these financial statements.
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