Young's says sale of brewery was 'well timed'

May 29, 2008: Young's has unveiled adjusted profits before tax up 54.7% to £18.6 million — what it considers to be a "strong performance in very testing market conditions". And its chief executive has said that last year's sale of the brewery was "well timed".

The company was revealing results for the year ended March 29, during which it spent £22.6 million acquiring and developing nine pubs, with a further £9.4 million invested in its existing estate.

Like many other pubcos it has experienced strong food sales growth in the wake of the smoking ban, this year up by 16%.

Chief executive Stephen Goodyear said: "This is our first full year’s trading since the major re-organisation and, given the current market conditions, the sale of the brewery looks well timed. The proceeds from the sale have been invested in pub acquisitions and redevelopments for the long-term benefit of the business and our shareholders.

“Whilst the short-term pressures facing the business and the wider UK economy are likely to continue to be challenging, we believe that we are in a strong position to meet them.

"Trading in our pubs in the first eight weeks of the new financial year has been resilient, with managed house sales up 3.4% and up 1.6% on a same outlet, like for like basis. We believe that this is a very creditable performance as we are up against very strong comparators from the exceptional weather we enjoyed in April last year.

“Young’s has a well invested estate, great pubs in great locations and a strong balance sheet. Young’s is a long-term business, having traded for over 175 years, and offers defensive qualities for investors in times of uncertainty — and a welcome respite for customers.

“With comparisons easing as we move into the summer months and the anniversary of the smoking ban, we are confident that Young’s will continue to make progress in the year ahead.”