Young & Co's Brew. - Interim Results
16/11/2023 07:01
For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20231116:nRSP6208Ta&default-theme=true
RNS Number : 6208T Young & Co's Brewery PLC 16 November 2023
YOUNG & CO.'S BREWERY, P.L.C.
INTERIM RESULTS FOR THE 26 WEEKS ENDED 2 OCTOBER 2023
A RECORD PERFORMANCE WITH A PROVEN STRATEGY
DELIVERING INDUSTRY-LEADING PROFITABILITY
2023 2022 %
£m £m change
Revenue 196.5 186.5 +5.4
Adjusted operating profit(1) 31.0 29.0 +6.9
Adjusted profit before tax(1) 28.0 25.0 +12.0
Adjusted EBITDA(1) 47.9 45.0 +6.4
Adjusted operating margin(1) 15.8% 15.5% +0.3%
Net debt 184.0 168.1 +9.5
Net debt to EBITDA(2) 2.1x 2.0x 0.1x
Profit before tax 24.5 23.9 +2.5
Adjusted basic earnings per share(1) 36.08p 34.54p +4.5
Basic earnings per share 29.75p 32.66p -8.9
Interim dividend per share(3) 10.88p 10.26p +6.0
Net assets per share(4) £12.50 £12.11 +3.2
1 Reference to an 'adjusted' item means that item has been adjusted to exclude
non-underlying items (see note 2 for adjusting items and note 5 for earnings
per share).
2 Net debt (including lease liabilities) to EBITDA has been calculated based
on the last 12 months' actual adjusted EBITDA of
£88.4 million (see note 2 for adjusted EBITDA and note 7 for net debt).
3 The interim dividend, in respect of the period ended 2 October 2023, is
expected to be paid on 8 December 2023 (see note 6).
4 Net assets per share are the group's net assets divided by the shares in
issue at the period end (see note 5).
PERFORMANCE HIGHLIGHTS
· Total revenue for the period up 5.4% to £196.5 million, and
adjusted EBITDA up 6.4% to £47.9 million with managed house EBITDA for the
period up 6.3% to £59.0 million
· Adjusted operating profit up 6.9% to £31.0 million, driven by a
sector leading margin of 15.8%, up 30 bps from last year's 15.5%
· Adjusted profit before tax growth of 12.0% to a record £28.0
million for a half year period, demonstrating the strength of Young's proven
strategy which consistently delivers profitable growth
· Like-for-like revenue growth of 3.6% against a strong comparator,
reflecting the significant outperformance of the market and rapid return to
normal trading conditions last year. Like-for-like sales ahead of 2019 by
10.8%
· A strong balance sheet, aided by positive free cashflow, supports
our strategy and provides the financial capacity for continued investment
· £39.1 million of investment in the period, including five
freehold acquisitions and £20.3 million invested in our existing estate, with
a further two acquisitions since the end of the period
· Interim dividend of 10.88 pence per share, an increase of 6.0%,
reflecting our strong performance and positive outlook
· Since the period end, managed house revenue for the last six
weeks was ahead of last year by 5.8%; and up by 3.3% on a like-for-like basis
· Young's has today separately announced a £162 million
recommended offer for City Pub Company plc, an AIM-listed owner and operator
of an estate of premium pubs and bedrooms across the Southern half of England
and Wales
Simon Dodd, Chief Executive of Young's, commented:
"I am pleased to report another strong set of financial results. Despite it
being a challenging first half of the year we have delivered an excellent
profit performance, reaching record levels for an interim period. This is
testament to the excellent work of our teams and our proven strategy of
operating premium, individual, differentiated and well-invested pubs."
"We are delighted to see London truly back in business, which was reflected by
our pubs in the City and Central London being standout performers, comfortably
exceeding pre-covid levels as customers enjoyed the Young's experience."
"While cost pressures across our supply chain remain, we have successfully
mitigated headwinds and maintained our industry-leading margins. There are
positive signs on the horizon, with cost pressures continuing to ease and
stabilise in some areas."
"Our strategy underpins our consistent delivery of industry-leading results,
and we remain confident in continuing to deliver superior returns for all our
shareholders."
For further information, please contact:
Young & Co.'s Brewery,
P.L.C.
020 8875 7000
Simon Dodd, Chief Executive
Michael Owen, Chief Financial Officer
MHP
Communications
020 3128 8742 / 8147
Tim Rowntree/ Robert Collett-Creedy
INTERIM STATEMENT
I am pleased to report another strong set of financial results for the first
half of the year, with a record interim adjusted profit before tax of £28.0
million, up by 12.0% on the prior year.
The period turned out to be a 'tale of two halves', as the abundance of
sunshine in June gave way to unfavourable weather in the core summer months of
July and August. Most recently, we were boosted by the hot weather in
September and the start of the Rugby World Cup, an event close to our hearts
at Young's. Overall, we delivered a good performance for the period, with
total revenue of £196.5 million (2022: £186.5 million) for the 26 weeks, up
5.4%, despite some impact from the ongoing rail strikes.
Young's is a business that places investment in its people and pubs at the
heart of its decision making. We are committed to maintaining a premium estate
and our strong financial position has enabled us to invest a total of £39.1
million across existing pubs and five freehold acquisitions. During the
period, we were delighted to welcome four new pubs to the Young's family: the
Libertine (Westbourne), White Hart (Ford), White Lion (Tenterden), and most
recently the Huntsman (Brockenhurst), adding a further 39 bedrooms to our
ever-growing room estate. At the start of the period, we also purchased the
virtual freehold interest in the Stag (Belsize Park).
I would like to take this opportunity to welcome Steve Cooke, who joined the
board as a non-executive director on 1 November 2023, bringing over 40 years'
corporate experience from his time at Slaughter and May, most recently as
senior partner. Steve will take over as non-executive chairman next year, when
Steve Goodyear steps down and retires from the board following the company's
2024 Annual General Meeting.
Given the strong financial performance and positive outlook, the board has
decided to raise the interim dividend by 6.0% to 10.88 pence per share (2022:
10.26 pence per share). This is expected to be paid on 8 December 2023 to
shareholders on the register at close of business on 24 November 2023.
BUSINESS REVIEW
Total managed revenue was up 5.4%, and 3.6% on a like-for-like basis compared
to the same period last year, and ahead of 2019 by 10.8%, driven by strong
growth in drink and accommodation. Managed like-for-like sales growth was
delivered against a strong comparative period, with Young's managed
like-for-like sales rebounding significantly faster than the market last year,
up by 20.4%. Like-for-like sales are now at levels more in line with our
long-standing history of delivering steady and consistent growth.
Despite our pubs battling against significant cost headwinds, the adjusted
operating profit for our managed estate was £42.8 million, a record for the
interim period. Compared with the prior year, the adjusted managed operating
profit was ahead by £2.8 million, driven by both our like-for-like estate and
pub acquisitions over the last 18 months.
The year got off to a fast start with the exceptionally hot weather in June
contributing to strong like-for-like sales growth of 6.8%, reported at the
time of our AGM in early July. However, the disappointing summer weather which
followed, along with further rail strikes, dampened sales growth in the second
quarter. September has seen the start of the Rugby World Cup, supported in
great numbers by our customers especially in our heartland of south-west
London. To celebrate the world cup, we launched our marketing campaign, 'The
Rugby Love', drawing on the values shared by rugby players and fans, as well
as our teams, customers and communities. We have partnered with the brilliant
Wooden Spoon charity as part of the campaign and pledged to raise more than
£150,000 for their initiatives.
Our pubs in the City and Central London continue to bounce back, with
like-for-like sales growth of 8.0%, and are now comfortably ahead of pre-covid
levels. All this has been achieved despite the ongoing train strikes having a
disproportional effect as city commuters were forced to stay at home on
affected days. The investment in our pubs in the capital is also vitally
important, and so far this period two of the highest returning schemes have
been at the Porchester (Westbourne Grove) and the Paternoster (St Paul's).
At the start of the financial year, we launched our new accommodation strategy
'Young's Rooms' to celebrate the enjoyment and the unique experience of
staying in a pub. Our room revenue has been the standout performance so far
this period with like-for-like growth of 10.1%, continuing its post-covid
recovery. Our total occupancy has improved by 3.2% points with an increase of
£8.34 to average room rates. In total, RevPAR was up by £9.74 to £86.85.
During the first half, our drink sales have performed well, led by good volume
growth across our draught range, with draught sales up by 8.5%. We strive to
be at the forefront of innovation, introducing new and exciting beers, and
have added Beavertown Lunar Haze, Asahi Super Dry, and our rugby-themed cask
ale 'Drop Gold' to our range so far this year. However, it has been the growth
in Guinness which leads the way, defying the impact of seasonality with volume
up by 26.6%. Compared to the same period last year, total drink sales were up
5.6% and 4.0% on a like-for-like basis.
This summer, our new seasonal campaign championed the trend of premium long
cocktails, with a spritz twist. From the fresh and herbaceous G&T to the
spicy and vibrant Margarita spritz, we capitalised on the booming cocktail
trend, resulting in a 12.5% increase in sales. However, summer classics like
Aperol Spritz remained popular, with sales increasing by 23.2%. The success of
Aperol Spritz also boosted sales of its alcohol-free sibling, the Amalfi
Spritz, which ranked among our best-selling spritzes.
Our food sales continue to grow, up 4.4% in total compared to the same period
last year, and 1.5% on a like-for-like basis. Our Executive Chef team continue
to support our pubs, helping to mitigate food inflation, as far as possible,
by taking a proactive approach to using seasonal and locally-sourced British
ingredients. We are hopeful that as we progress through the rest of the year
we will continue to see this pressure ease, with recent food costs flat to
this time last year.
It has been one of our busiest starts to a year with record investment of
£20.3 million on our existing estate after the first six months. Having
closed in the previous financial year, the Marquess of Anglesey (Covent
Garden), one of our flagship Central London pubs, reopened its doors in May
following a multi-million pound scheme where we added a wonderful new 40-cover
rooftop bar, complete with retractable roof. In August, we reopened the
legendary Clapham North (Clapham), previously one of our remaining tenanted
pubs, after taking the pub into our managed estate in March 2023 and
undertaking a major refurbishment. This investment has brought a new sense of
fun and life to the pub, and, with its location directly opposite the tube
station bearing the same name, I have no doubt that it will be a huge success.
Elsewhere, major work has begun at the Defector's Weld (Shepherd's Bush),
Constitution (Camden) where we are restoring iconic features while enhancing
its trading space with the addition of a roof terrace, and the Bedford Arms
(Chenies), an impressive 18(th) century pub with 15 rooms following its
acquisition last April. We are committed to elevating every Young's pub to the
very highest standard and have completed other eye-catching smaller schemes at
the Crown (Twickenham), Coach & Horses (Isleworth) and the Chelsea Ram
(Chelsea). All are fine examples of what can be achieved on a smaller scale.
Alongside this investment, we have added four premium freehold pubs: the
Huntsman (Brockenhurst), Libertine (Westbourne), White Hart (Ford) and the
White Lion (Tenterden), all seamlessly transitioning across from Marston's
into our existing managed estate. We ended the period with 230 pubs, including
42 with rooms, up from 226 at the end of last period, with an additional 32
bedrooms taking our total Young's Rooms stock to 825.
FINANCE
From 1 April 2023, the effective corporation tax rate increased from 19.0% to
25.0% and combined with a lower capital allowances deduction rate the
corporation tax expense has increased to £6.5 million this period (2022:
£3.1 million). Despite this additional expense, the increased profitability
has seen our adjusted earnings per share rise by 4.5% to 36.08 pence.
At the period end, our net debt increased to £184.0 million from £165.2
million at the year-end, driven by a combination of the higher level of
investment, a large movement in working capital purely due to the timing of
the period end date and a rise in our tax payments following the new effective
corporation tax rate. Our net debt excluding lease liabilities sits at £110.8
million. Based on the last twelve months' adjusted EBITDA of £88.4 million,
our net debt (including lease liabilities) to EBITDA ratio has increased to
2.1 times (3 April 2023: 1.9 times). Our cash balance of £0.8 million and
drawn down debt of £112.5 million provides us with debt headroom of £92.5
million.
The adjusting items of £3.5 million (2022: £1.1 million) related to an
impairment charge of £2.1 million to goodwill and right-of-use assets
combined with purchase costs of £0.8 million for acquisitions made in the
period. The remaining £0.6 million was compensation paid to the previous
tenants of the Clapham North (Clapham) and the theatre company at the Kings
Head (Islington) following the termination of their lease.
The methodology and assumptions prescribed for the purposes of IAS 19 Pensions
accounting mean that the balance sheet surplus or deficit are inherently
volatile and will vary greatly according to investment market conditions at
each accounting date. Wider market conditions have led to an increase in the
discount rate used to 5.7% (3 April 2023: 4.7%), which has contributed to a
fall in liabilities, however this has been outweighed by the fall in asset
values during the period. This has resulted in our retirement benefit schemes
reducing by £5.7 million since the year-end, from a net surplus of £3.7
million to a net deficit of £2.0 million.
ESG
As a group, we are committed to operating sustainably and to continuously
finding ways to reduce our carbon footprint. Our managed pubs are at the heart
of the communities in which we operate, bringing people together and giving us
the opportunity to improve the wellbeing of both our teams and our customers.
As a founding member of the Zero Carbon Forum, a group which has created a
'Roadmap for Hospitality to Net Zero' we have aligned ourselves with the
industry's roadmap to become net zero across scope 1, 2 and 3 emissions by
2040. We actively participate in their action groups, sharing ideas,
collaborating, and collectively working towards a net zero future. We are
currently in the process of aligning our sustainability reporting activities
with the Task Force on Climate-related Financial Disclosures ('TCFD')
framework and are pleased that we will be reporting against the TCFD framework
for the first time in our annual report for the year ended 1 April 2024.
We continue to guide and encourage behavioural change within our operations,
with initiatives such as 'Save While You Sleep' in partnership with the Zero
Carbon Forum, and the 'Wasteless Pub' project in collaboration with our waste
management partners Suez. We are passionate about seasonal, premium, and
sustainable British produce. Our menus are crafted using the finest
ingredients, the majority of which are sourced in the UK. We work closely with
our key suppliers to improve the transparency of our ingredients and to
identify ways we can work together to reduce our supply chain emissions.
Further information about our ESG initiatives and our evolving sustainability
strategy will be provided in our 2024 Annual Report.
CURRENT TRADING AND OUTLOOK
Recent trading continues to perform well and in line with our expectations.
Total sales for the last six weeks are up by 5.8% and up by 3.3% on a
like-for-like basis. The Rugby World Cup has bolstered trading and propelled
Guinness sales to new highs as customers cheered on their home nations.
Christmas bookings are already looking strong, supported by the significant
investments we have made in our existing estate and the addition of fantastic
premium freehold pubs.
Since the period end, we have completed two individual freehold acquisitions,
adding the Crooked Billet (Clapton) and the Ship Inn (Noss Mayo, Devon). Our
continued investment programme will see us complete several major schemes over
the coming months, including the Constitution (Camden), a pub that has been
empty since its acquisition in 2019, the iconic Clarence (Whitehall) reopening
its doors after a full refurbishment and the Guinea Grill (Mayfair) which,
following a new lease extension, will incorporate the neighbouring property as
part of the project, with an additional 84 covers and two new private dining
rooms.
Despite the good start to the second half of our financial year, we continue
to monitor trading conditions closely. The macroeconomic environment and the
impact this could have on consumer sentiment remains unpredictable. In
particular, we are once again conscious of the significant impact further rail
strikes could have on trade in the lead up to the festive period, an important
time of year for the hospitality sector. However, the business is
operationally cash generative with a robust balance sheet. 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, crucial to our continuing success and
the delivery of superior returns for our shareholders.
Simon Dodd
Chief Executive
15 November 2023
Independent review report to the members of Young & Co.'s Brewery, P.L.C.
Conclusion
We have been engaged by the company to review the condensed set of financial
statements in the interim report for the 26 weeks ended 2 October 2023 which
comprises the group income statement, the group statement of comprehensive
income, the group balance sheet, the group statement of changes in equity, the
group statement of cash flow and the related explanatory notes. We have read
the other information contained in the interim report and considered whether
it contains any apparent misstatements or material inconsistencies with the
information in the condensed set of financial statements.
Based on our review, nothing has come to our attention that causes us to
believe that the condensed set of financial statements in the half-yearly
financial report for the 26 weeks ended 2 October 2023 is not prepared, in all
material respects, in accordance with the accounting policies outlined in Note
1, which comply with UK adopted International Accounting Standards and in
accordance with the AIM Rules issued by the London Stock Exchange.
Basis for Conclusion
We conducted our review in accordance with International Standard on Review
Engagements (UK) 2410, "Review of Interim Financial Information Performed by
the Independent Auditor of the Entity" issued by the Financial Reporting
Council. A review of interim financial information consists of making
enquiries, primarily of persons responsible for financial and accounting
matters, and applying analytical and other review procedures. A review is
substantially less in scope than an audit conducted in accordance with
International Standards on Auditing (UK) and consequently does not enable us
to obtain assurance that we would become aware of all significant matters that
might be identified in an audit. Accordingly, we do not express an audit
opinion.
As disclosed in note 1, the annual financial statements of the group are
prepared in accordance with UK adopted international accounting standards.
Conclusions Relating to Going Concern
Based on our review procedures, which are less extensive than those performed
in an audit as described in the Basis of Conclusion section of this report,
nothing has come to our attention to suggest that management have
inappropriately adopted the going concern basis of accounting or that
management have identified material uncertainties relating to going concern
that are not appropriately disclosed.
This conclusion is based on the review procedures performed in accordance with
this ISRE, however future events or conditions may cause the entity to cease
to continue as a going concern.
Responsibilities of the directors
The directors are responsible for preparing the interim report in accordance
with the AIM Rules issued by the London Stock Exchange which require that it
is presented and prepared in a form consistent with that which will be adopted
in the company's annual accounts having regard to the accounting standards
applicable to such annual accounts.
In preparing the interim report, the directors are responsible for assessing
the company's ability to continue as a going concern, disclosing, as
applicable, matters related to going concern and using the going concern basis
of accounting unless the directors either intend to liquidate the company or
to cease operations, or have no realistic alternative but to do so.
Auditor's Responsibilities for the review of the financial information
In reviewing the interim report, we are responsible for expressing to the
Company a conclusion on the condensed set of financial statements in the
interim report. Our conclusion, including our Conclusions Relating to Going
Concern, are based on procedures that are less extensive than audit
procedures, as described in the Basis for Conclusion paragraph of this report.
Use of our report
This report is made solely to the company in accordance with guidance
contained in International Standard on Review Engagements 2410 (UK) "Review of
Interim Financial Information Performed by the Independent Auditor of the
Entity" issued by the Financial Reporting Council. To the fullest extent
permitted by law, we do not accept or assume responsibility to anyone other
than the company, for our work, for this report, or for the conclusions we
have formed.
Ernst & Young LLP
Reading
15 November 2023
Group income statement
For the 26 weeks ended 2 October 2023
Unaudited Unaudited Audited
26 weeks 26 weeks 53 weeks
to 2 Oct to 26 Sep to 3 Apr
2023 2022 2023
Notes £m £m £m
Revenue 3 196.5 186.5 368.9
Operating costs before adjusting items (165.5) (157.5) (316.5)
Adjusted operating profit 31.0 29.0 52.4
Adjusting items 2 (3.5) (1.1) (9.0)
Operating profit 27.5 27.9 43.4
Finance income - - 0.1
Finance costs (3.1) (4.2) (7.6)
Finance income for pension obligations 11 0.1 0.2 0.3
Profit before tax
24.5 23.9 36.2
Income tax expense 4 (7.1) (4.8) (6.5)
Profit after tax for the period attributable to shareholders of the parent
company
17.4 19.1 29.7
Pence Pence Pence
Earnings per 12.5p ordinary share
Basic 5 29.75 32.66 50.78
Diluted 5 29.74 32.64 50.74
Group statement of comprehensive income
For the 26 weeks ended 2 October 2023
Unaudited Unaudited Audited
26 weeks 26 weeks 53 weeks
to 2 Oct to 26 Sep to 3 Apr
2023 2022 2023
Notes £m £m £m
Profit for the period 17.4 19.1 29.7
Other comprehensive income
Items that will not be reclassified subsequently to profit or loss:
Unrealised gain on revaluation of property - - 15.2
Remeasurement of retirement benefit schemes 11 (6.5) (12.8) (10.1)
Tax on above components of other comprehensive income 1.6 3.2 (1.2)
Items that will be reclassified subsequently to profit or loss:
Fair value movement of interest rate swaps 0.2 6.2 3.1
Tax on fair value movement of interest rate swaps - (1.5) (0.8)
(4.7) (4.9) 6.2
Total comprehensive income attributable to shareholders of the parent company
12.7 14.2 35.9
All of the results above are from continuing operations.
Group balance sheet
At 2 October 2023
Unaudited Unaudited Audited
at 2 Oct at 26 Sep at 3 Apr
2023 2022 2023
Notes £m £m £m
Non-current assets
Goodwill 9 30.7 32.5 32.5
Property and equipment 8 865.1 824.1 842.5
Right-of-use assets 9 144.1 145.0 142.9
Derivative financial instruments 2.2 5.4 2.3
Retirement benefit schemes 11 - 1.8 5.4
1,042.1 1,008.8 1,025.6
Current assets
Inventories 5.4 5.4 5.4
Trade and other receivables 9.9 7.7 9.5
Income tax receivable - 6.0 -
Derivative financial instruments 3.0 2.6 2.7
Cash 0.8 39.0 10.7
19.1 60.7 28.3
Asset held for sale 10 3.1 - -
Total assets 1,064.3 1,069.5 1,053.9
Current liabilities
Borrowings (20.0) (30.0) -
Lease liabilities 9 (4.7) (5.2) (4.8)
Trade and other payables (42.4) (48.6) (46.6)
Income tax payable (0.5) - (0.9)
(67.6) (83.8) (52.3)
Non-current liabilities
Borrowings (91.6) (104.0) (104.2)
Lease liabilities 9 (68.5) (67.9) (66.9)
Deferred tax liabilities (103.5) (104.1) (104.6)
Retirement benefit schemes 11 (2.0) (1.6) (1.7)
(265.6) (277.6) (277.4)
Total liabilities (333.2) (361.4) (329.7)
Net assets 731.1 708.1 724.2
Capital and reserves
Share capital 12 7.3 7.3 7.3
Share premium 12 7.8 7.8 7.8
Capital redemption reserve 1.8 1.8 1.8
Hedging reserve 4.2 6.4 4.0
Revaluation reserve 260.9 249.4 260.9
Retained earnings 449.1 435.4 442.4
Total equity 731.1 708.1 724.2
Group statement of changes in equity
For the 26 weeks ended 2 October 2023
Notes Share capital and premium Capital redemption reserve Hedging reserve Revaluation reserve Retained earnings Total equity
£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 26 week period - - - - 17.4 17.4
Other comprehensive income
Remeasurement of retirement benefit
schemes 11 - - - - (6.5) (6.5)
Fair value movement of interest rate swaps - - 0.2 - - 0.2
Tax on above components of other
comprehensive income - - - - 1.6 1.6
Total comprehensive income - - 0.2 - 12.5 12.7
Transactions with owners recorded directly in equity
Dividends paid on equity shares - - - - (6.0) (6.0)
Share based payments - - - - 0.2 0.2
- - - - (5.8) (5.8)
At 2 October 2023 15.1 1.8 4.2 260.9 449.1 731.1
At 28 March 2022 15.0 1.8 1.7 249.4 431.8 699.7
Total comprehensive income
Profit for the 26 week period - - - - 19.1 19.1
Other comprehensive income
Remeasurement of retirement benefit
schemes 11 - - - - (12.8) (12.8)
Fair value movement of interest rate swaps - - 6.2 - - 6.2
Tax on above components of other
comprehensive income - - (1.5) 3.2 1.7
Total comprehensive income - - 4.7 - 9.5 14.2
Transactions with owners recorded directly in equity
Issued equity 12 0.1 - - - - 0.1
Dividends paid on equity shares - - - - (6.0) (6.0)
Share based payments - - - - 0.1 0.1
0.1 - - - (5.9) (5.8)
At 26 September 2022 15.1 1.8 6.4 249.4 435.4 708.1
Group statement of cash flow
For the 26 weeks ended 2 October 2023
Unaudited Unaudited Audited
26 weeks 26 weeks 53 weeks
to 2 Oct to 26 Sep to 3 Apr
2023 2022 2023
Notes £m £m £m
Operating activities
Net cash generated from operations 7 41.3 48.5 83.8
Tax paid (7.0) (3.0) (0.9)
Net cash flow from operating activities 34.3 45.5 82.9
Investing activities
Proceeds from disposal of property and equipment - - 6.1
Purchases of property and equipment 8 (23.8) (18.9) (40.2)
Business combinations, net of cash acquired 8 (15.3) (9.8) (18.2)
Right-of-use assets acquired (0.4) - -
Net cash used in investing activities (39.5) (28.7) (52.3)
Financing activities
Issued equity, net of transaction costs 12 - 0.1 0.1
Interest paid (2.8) (2.4) (6.9)
Equity dividends paid 6 (6.0) (6.0) (12.0)
Payments of principal portion of lease liabilities (3.3) (3.5) (5.1)
Repayments of borrowings(1) (2.1) - (30.0)
Proceeds from borrowings(2) 9.5 - -
Net cash flow used in financing activities (4.7) (11.8) (53.9)
(Decrease)/increase in cash (9.9) 5.0 (23.3)
Cash at the beginning of the period 10.7 34.0 34.0
Cash at the end of the period 0.8 39.0 10.7
(1) During the current period to 2 October 2023, the group repaid £2.0
million (net of £0.1 million fees) Revolving Credit Facility debt. During the
prior 53 week period to 3 April 2023 the group repaid the £30.0 million
bilateral term loan with NatWest.
(2) During the current period to 2 October 2023 the group drew down £9.5
million on the Revolving Credit Facility.
NOTES TO THE FINANCIAL STATEMENTS
1. ACCOUNTS
This interim report was approved by the board on 15 November 2023. 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 4 April 2023 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 3 April 2023 (UK-adopted International Accounting Standards), except for
those noted below. 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 2 October 2023 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 3 April 2023 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.
NEW ACCOUNTING STANDARDS AND ACCOUNTING POLICIES
International Tax Reform - Pillar Two Model Rules - Amendments to IAS 12
The amendments to IAS 12 have been introduced in response to the OECD's BEPS
Pillar Two rules and include:
(· ) A mandatory temporary exception to the recognition and
disclosure of deferred taxes arising from the jurisdictional implementation of
the Pillar Two model rules; and
(· ) Disclosure requirements for affected companies to help
users of the financial statements better understand a company's exposure to
Pillar Two income taxes arising from that legislation, particularly before its
effective date.
The mandatory temporary exception applies immediately. The remaining
disclosure requirements are effective 1 January 2023. The group has applied
the exception to recognising and disclosing information about deferred tax
assets and liabilities related to Pillar Two income taxes, therefore the
amendments had no impact on the group's interim financial statements.
Other standards
The directors have adopted the following Standards, Amendments and
Interpretations listed below for the first time during the period. The
adoption of these amendments has not had a material impact on the interim
financial statements of the group:
(· )Amendments to IAS 8 - Definition of Accounting Estimates
- effective 1 January 2023;
(· )Amendments to IAS 1 and IFRS Practice Statement 2 -
Disclosure of Accounting Policies - effective 1 January 2023;
(· )Amendments to IAS 12 - Deferred Tax related to Assets and
Liabilities arising from a Single Transaction - effective 1 January 2023.
GOING CONCERN
At 2 October 2023, the group had cash in bank of £0.8 million and committed
borrowing facilities of £205.0 million, of which £112.5 million was drawn
down. The group expects, by 27 November 2024 (the 'going concern' period), to
have available facilities of £205.0 million, prior to the consideration of
any strategic acquisitions. The group is currently refinancing both the £20
million term loan that is due May 2024 and the £100.0 million RCF due March
2025. However, given that the refinancing process is yet to be completed, for
going concern purposes the group has assumed that available facilities will be
£185.0 million at the end of the going concern period. In addition to these
committed facilities, the group has a £10.0 million overdraft 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 2024 as well as the board approved strategic plan covering
April to November 2024. The key judgements applied are the extent of any
influence on trade because of the economic downturn and its impact on
consumers, and the inflationary 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
20% in sales and 40% in profit across the period. This aims to capture the
potential slowdown in consumer spending influenced by the ongoing cost of
living crisis. The cost inflation scenario includes an average 8% 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 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.40% and profit
reduction of c.60% between October 2023 and November 2024 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. In addition to the
three scenarios and reverse stress test, the board has also considered the
impact of any strategic acquisitions that are under consideration.
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 £1.4 million
(for the period ended 26 September 2022: £1.1 million).
26 weeks 26 weeks 53 weeks
to 2 Oct to 26 Sep to 3 Apr
2023 2022 2023
£m £m £m
Amounts included in operating profit
Impairment loss(1) (2.1) - -
Purchase costs(2) (0.8) (0.8) (1.1)
Tenant compensation(3) (0.6) (0.3) (0.6)
Restructuring costs(4) - - (0.3)
Upward movement on the revaluation of properties (note 8)(5) - - 4.8
Downward movement on the revaluation of properties (note 8)(5) - - (11.8)
(3.5) (1.1) (9.0)
Tax attributable to above adjusting items (0.2) - 1.2
Impact of change in corporation tax rate - - (0.1)
(0.2) - 1.1
Total adjusting items after tax (3.7) (1.1) (7.9)
During the current and prior period tenant compensation and purchase costs
related to managed houses and other segments.
( 1 ) Impairment losses were recognized in relation to goodwill and
right-of-use assets (£1.7 million and £0.4 million respectively). See note
9.
( 2 ) Purchase costs related to professional fees and stamp duty
land tax arising on the acquisition of the Libertine (Westbourne), White Hart
(Ford), White Lion (Tenterden) and the Huntsman (Brockenhurst). During the
previous 53 week period to 3 April 2023, costs related to the purchase of the
Bedford Arms (Chenies), Merlin's Cave (Chalfont St Giles), Half Moon
(Windlesham), Griffin Inn (Fletching) and the Carpenter's Arms (Tonbridge).
These included legal and professional fees and stamp duty land tax.
( 3 ) Tenant compensation was paid to the tenants of the Clapham
North (Clapham) and the King's Head Theatre (Islington) and related to the
termination of their leases. During the previous 53 week period to 3 April
2023, tenant compensation of £0.6 million was paid to the previous tenants of
an unlicensed property (Ealing) and the Bishop's Vaults (Bishopsgate) to
terminate their lease agreements early.
( 4 ) During the previous 53 week period to 3 April 2023,
restructuring costs of £0.3 million related to a one-off reorganisation of
the group's head office functions. These were largely made up of severance
costs.
( 5 ) The net downward movement on the revaluation of properties in
the previous 53 week period to 3 April 2023 related to net downward movements
in excess of amounts recognised in equity. See note 11(1) in the statutory
accounts for the period ended 3 April 2023 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 53 weeks
to 2 Oct to 26 Sep to 3 Apr
2023 2022 2023
£m £m £m
Profit before tax 24.5 23.9 36.2
Adjusting items 3.5 1.1 9.0
Adjusted profit before tax 28.0 25.0 45.2
Finance income - - (0.1)
Finance costs 3.1 4.2 7.6
Finance income for pension obligations (0.1) (0.2) (0.3)
Adjusted operating profit 31.0 29.0 52.4
Depreciation 16.9 16.0 33.1
Adjusted EBITDA 47.9 45.0 85.5
During the period, £42.8 million of adjusted operating profit related to
managed houses (in the period ended 26 September 2022: £40.0 million).
Adjusted operating loss of £11.8 million mainly related to head office costs
and was unallocated (in the period ended 26 September 2022: £11.0 million).
During the period, £59.0 million of adjusted EBITDA related to managed houses
(in the period ended 26 September 2022: £55.5 million). Adjusted negative
EBITDA of £11.1 million mainly related to head office costs and was
unallocated (in the period ended 26 September 2022: £10.5 million).
3. REVENUE
The recognition of revenue under each of the group's material revenue streams
is as follows:
26 weeks 26 weeks 53 weeks
2 Oct 26 Sep 3 Apr
2023 2022 2023
£m £m £m
Drink sales 123.9 117.3 229.4
Food sales 59.3 56.8 115.5
Accommodation sales 12.6 11.5 21.9
Total revenue from contracts with customers 195.8 185.6 366.8
Other income 0.7 0.9 2.1
Total revenue recognised 196.5 186.5 368.9
4. TAXATION
The taxation charge for the 26 weeks ended 2 October 2023 results in an
effective tax rate of 24.6% (53 weeks ended 3 April 2023: 18.0%).
26 weeks 26 weeks 53 weeks
to 2 Oct to 26 Sep to 3 Apr
Tax charged in the group income statement 2023 2022 2023
£m £m £m
Current tax
Corporation tax expense 6.5 3.1 7.3
Adjustment in respect of current tax of prior periods - - 0.9
6.5 3.1 8.2
Deferred tax
Origination and reversal of temporary differences 0.6 1.7 (0.3)
Adjustment in respect of prior periods - - (1.1)
Deferred tax measured at higher rate - - (0.3)
0.6 1.7 (1.7)
Tax charge in the income statement 7.1 4.8 6.5
The effective full year current tax rate of 24.3% is up from 12.6% in the
prior 53 week period to 3 April 2023. This is below the standard rate, due
largely to the temporary differences arising from the introduction, with
effect from 1 April 2023, of the capital allowances 'full expensing' at 100%
of eligible expenditure and special rate allowance at 50% of eligible
expenditure, substantively enacted on 20 June 2023. It is higher than the
prior 53 week period due to the higher statutory rate of tax of 25% (53 weeks
ended 3 April 2023: 19%). The lower effective tax rate in the prior period was
also impacted by the temporary capital allowances 'super-deduction' rate at
130% of eligible expenditure, replaced by 'full expensing' at 100% of eligible
expenditure in the current period.
5. EARNINGS PER ORDINARY SHARE
(a) Weighted average number of shares
26 weeks 26 weeks 53 weeks
to 2 Oct to 26 Sep to 3 Apr
2023 2022 2023
Number Number Number
Basic weighted average number of ordinary shares in issue 58,484,602 58,482,021 58,483,336
Dilutive potential ordinary shares from outstanding employee share options
20,236 26,920 51,928
Diluted weighted average number of shares 58,504,838 58,508,941 58,535,264
(b) Earnings attributable to shareholders of the parent company
26 weeks 26 weeks 53 weeks
to 2 Oct to 26 Sep to 3 Apr
2023 2022 2023
£m £m £m
Profit for the period 17.4 19.1 29.7
Adjusting items 3.5 1.1 9.0
Tax attributable to adjusting items 0.2 - (1.1)
Adjusted earnings after tax 21.1 20.2 37.6
Basic earnings per share
Pence Pence Pence
Basic 29.75 32.66 50.78
Effect of adjusting items 6.33 1.88 13.51
Adjusted basic 36.08 34.54 64.29
Diluted earnings per share
Pence Pence Pence
Diluted 29.74 32.64 50.74
Effect of adjusting items 6.33 1.88 13.49
Adjusted diluted 36.07 34.52 64.23
The basic earnings per share figure is calculated by dividing the net profit
for the period 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 20,236 (2022: 26,920) 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 on basic and diluted earnings per share.
6. DIVIDENDS ON EQUITY SHARES
26 weeks 26 weeks 53 weeks
to 2 Oct to 26 Sep to 3 Apr
2023 2022 2023
Pence Pence Pence
Final dividend paid (previous period) 10.26 10.26 10.26
Interim dividend paid (current period) - - 10.26
10.26 10.26 20.52
The table above sets out dividends that have been paid. The final dividend in
respect of the period ended 3 April 2023, at a cost of £6.0 million (for the
period ended 28 March 2022: £6.0 million) was paid during the period. The
interim dividend, in respect of the period ended 2 October 2023, at a cost of
£6.4 million (for the period ended 26 September 2022: £6.0 million), is
expected to be paid on 8 December 2023 to shareholders on the register at the
close of business on 24 November 2023.
7. NET CASH GENERATED FROM OPERATIONS AND ANALYSIS OF NET DEBT
26 weeks 26 weeks 53 weeks
to 2 Oct to 26 Sep to 3 Apr
2023 2022 2023
£m £m £m
Profit before tax 24.5 23.9 36.2
Finance costs 3.1 4.2 7.5
Finance income for pension obligations (0.1) (0.2) (0.3)
Operating profit 27.5 27.9 43.4
Depreciation of property and equipment 13.3 12.6 26.2
Depreciation of right-of-use assets 3.6 3.4 6.9
Impairment of goodwill and right-of-use assets 2.1
Movement on the revaluation of properties - - 7.0
Difference between pension service cost and cash contributions paid (0.7) (0.6) (1.3)
Share based payments (0.2) - (0.5)
Movements in working capital
- Inventories - (0.7) (0.7)
- Receivables (0.4) 1.1 (0.6)
- Payables (3.9) 4.8 3.4
Net cash generated from operations 41.3 48.5 83.8
Analysis of group net debt
At 2 Oct At 26 Sep At 3 Apr
2023 2022 2023
£m £m £m
Cash 0.8 39.0 10.7
Current borrowings and loan capital (20.0) (30.0) -
Current lease liabilities (4.7) (5.2) (4.8)
Non-current borrowings and loan capital (91.6) (104.0) (104.2)
Non-current lease liabilities (68.5) (67.9) (66.9)
Net debt (184.0) (168.1) (165.2)
8. PROPERTY AND EQUIPMENT
Fixtures,
Land & fittings &
buildings equipment Total
Cost or valuation £m £m £m
At 28 March 2022 749.6 154.0 903.6
Additions 9.5 30.7 40.2
Business combinations 15.8 2.4 18.2
Disposals (6.1) (0.7) (6.8)
Fully depreciated assets (0.2) (24.2) (24.4)
Revaluation
- effect of upward movement in property valuation 37.7 - 37.7
- effect of downward movement in property valuation (22.2) - (22.2)
At 3 April 2023 784.1 162.2 946.3
Additions 6.8 17.0 23.8
Business combinations 13.1 2.2 15.3
Disposals - (0.3) (0.3)
Transfer out to asset held for sale (2.9) (0.1) (3.0)
Fully depreciated assets (1.5) (9.5) (11.0)
At 2 October 2023 799.6 171.5 971.1
Depreciation and impairment
At 28 March 2022 19.7 75.9 95.6
Depreciation charge 1.7 24.5 26.2
Disposals (0.5) (0.4) (0.9)
Fully depreciated assets (0.2) (24.2) (24.4)
Revaluation
- effect of downward movement in property valuation 12.1 - 12.1
- effect of upward movement in property valuation (4.8) - (4.8)
At 3 April 2023 28.0 75.8 103.8
Depreciation charge 0.8 12.5 13.3
Transfer out to asset held for sale - (0.1) (0.1)
Fully depreciated assets (1.5) (9.5) (11.0)
At 2 October 2023 27.3 78.7 106.0
Net book value
At 28 March 2022 729.9 78.1 808.0
At 3 April 2023 756.1 86.4 842.5
At 2 October 2023 772.2 92.9 865.1
Business combinations
During the period, the group acquired the Libertine (Westbourne), White Hart
(Ford), White Lion (Tenterden) and the Huntsman (Brockenhurst), which formed
business combinations for a total cash consideration of £15.3 million, which
was settled during the period. Each individual pub was not considered to be a
material acquisition for the group. When assets are acquired, management
determines whether the assets form a business combination. Business
combinations must involve the acquisition of a business, which generally have
three elements: inputs, processes and output. The final aggregated fair value
of the identifiable assets and liabilities of the acquired businesses were
property and equipment of £15.3 million. The group incurred £0.8 million of
costs associated with the acquisitions, which have been recorded within
adjusting items (see note 2).
In the prior period to 3 April 2023, the group acquired the Bedford Arms
(Chenies), Merlin's Cave (Chalfont St Giles), Half Moon (Windlesham),
Carpenter's Arms (Tonbridge) and the Griffin Inn (Fletching), which formed
business combinations for a total cash consideration of £18.2 million, which
was settled during the prior period. The group incurred £0.8 million of costs
associated with the acquisitions, which have been recorded within adjusting
items (see note 2).
Other acquisitions
During the period the group acquired the Stag (Belsize Park) as an asset
acquisition for a total cash consideration of £3.3 million. In the prior
period to 3 April 2023, the group acquired the Wild Duck (Ewen) as an asset
acquisition for a total cash consideration of £2.7 million.
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 3 April 2023 still represents the best estimate of the
fair value of the estate at 2 October 2023.
Details of the methodology used in determining the group's property values are
discussed in the group's audited accounts for the 53 weeks ended 3 April
2023. 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 £56.9 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 28 March 2022 147.0 74.0
Additions 0.4 0.4
Lease amendments 2.4 2.4
Depreciation expense (6.9) -
Accretion of interest - 2.5
Payments - (7.6)
As at 3 April 2023 142.9 71.7
Additions 6.4 6.0
Lease amendments 1.6 1.6
Depreciation expense (3.6) -
Accretion of interest - 1.2
Payments - (4.5)
Impairment (0.4) -
Disposals (2.8) (2.8)
As at 2 October 2023 144.1 73.2
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.
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 2 October 2023, for Geronimo Group Limited and 580 Ltd, cash flows assumed
a 1.4% growth (3 April 2023: 1.4%) from a base of expected FY24 EBITDA,
derived from the board approved FY24 budget. For Smiths of Smithfield Ltd
growth rates were higher over a five-year period to reflect the opening of the
Museum of London in 2026 and Smithfield Market in 2028, and then revert back
to a long-term growth rate of 1.4% thereafter. For Spring Pub Company Ltd,
growth rates were higher over a five-year period to reflect a build-up to
expected trade levels, and then revert back to a long-term growth rate of 1.4%
thereafter. For Redcomb Pubs Limited, growth rates varied across the estate
depending on current and future expected performance over a five-year period,
and then reverted back to a long-term growth rate of 1.4% thereafter. The
pre-tax discount rate applied to all cash flow projections was 10.6% (3 April
2023: 9.7%), except for Smiths of Smithfield Ltd, where a risk-adjusted
pre-tax discount rate of 11.9% was applied to future cash flow projections. An
impairment of £1.7 million (3 April 2023: £nil) was recognised in the
current period to 2 October 2023, £1.1 million to Spring Pub Company Ltd and
£0.6 million to Smiths of Smithfield Ltd.
At 2 October 2023, management performed a sensitivity analysis on the
impairment test. The impairment calculation is most sensitive to the pre-tax
discount rate and EBITDA assumptions. Several scenarios have been modelled,
with specific reference to the impact of an increase in the discount rate or a
decrease in the long-term growth rates used in the model. For Smiths of
Smithfield Ltd, an additional impairment of £0.6 million to goodwill and
£0.3 million to right-of-use assets would be recognised as a result of
reducing EBITDA by 0.5%. For Spring Pub Company Ltd, an additional impairment
of £0.2 million would be recognised as a result of reducing EBITDA by 0.7%.
For Redcomb Pubs Limited, the headroom would be eliminated as a result of
increasing the pre-tax discount rate to 11.1% or reducing EBITDA by 3.7% from
forecast levels.
For Geronimo Group Limited and 580 Ltd, management does not consider the
impairment calculation to be sensitive to the pre-tax discount rate, EBITDA
assumptions, or long-term growth rate assumptions.
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 2 Oct at 26 Sep at 3 Apr
2023 2022 2023
£m £m £m
Goodwill 0.1 - -
Property and equipment 3.0 - -
Property held for sale 3.1 - -
At 2 October 2023 one property has been 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. No material change in value was recognised on
reclassifying the property as held for sale.
11. RETIREMENT BENEFIT SCHEMES
The table below summarises the movement in the retirement benefit schemes in
the period.
26 weeks 26 weeks 53 weeks
to 2 Oct to 26 Sep to 3 Apr
2023 2022 2023
£m £m £m
Changes in the present value of the retirement benefit schemes are as follows:
Opening surplus 3.7 12.2 12.2
Current service cost (0.1) (0.1) (0.3)
Contributions 0.8 0.7 1.6
Finance income for pension obligations 0.1 0.2 0.3
Remeasurement through other comprehensive income (6.5) (12.8) (10.1)
Closing (deficit)/surplus (2.0) 0.2 3.7
The £6.5 million remeasurement through other comprehensive income is largely
driven by the actual return in assets being less than expected. This was
partially offset by a reduction in liabilities due to changes in market
conditions with an increase in RPI inflation to 3.3% (3 April 2023: 3.2%) and
an increase to the discount rate to 5.7% (3 April 2023: 4.7%).
12. SHARE CAPITAL
Total share capital comprises the nominal value of the share capital issued
and fully paid of £7.3 million (2023: £7.3 million) and the share premium
account of £7.8 million (2023: £7.8 million). Share capital issued in the
period comprises a nominal value of £nil (2023: £nil) and a share premium of
£nil (2023: £0.1 million).
13. POST BALANCE SHEET EVENTS
Subsequent to the period end the group sold the Salt Room (Islington), which
was classified as held for sale at 2 October 2023, for a total cash
consideration of £3.3 million.
The group also acquired the entire issued share capital of a subsidiary
company which owns and operates the Crooked Billet (Clapton) for a total
consideration of £7.3 million, and exchanged contracts and completed on the
Ship Inn (Noss Mayo) for a total cash consideration of £4.5 million.
Additionally, the group exchanged but has not yet completed on a freehold
property in Surrey. The accounting for all new acquisitions has not yet been
finalised.
Subsequent to the period end the group has drawn down a net £4.5 million on
the Revolving Credit Facility.
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
or visit
www.rns.com (http://www.rns.com/)
.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
. END IR FFLEEIEDSESF