Young's pub business in good shape

November 16, 2007: Young's has revealed a 72.1% rise in operating profits to £12.1 million in the 26 weeks to September 29, 2007. Revenue rose by 11.9% to £63.9 million.

Highlights during the period included the acquisition of one pub for £3.5 million, with £4.9 million invested on existing pubs. The head office was relocated and rationalised.

Food sales grew by 23.9%, helping offset any possible effect of the smoking ban, said the company's report.

“I am very pleased with our strong first half performance, which reflects the benefits from the substantial changes made to the company last year and has been achieved despite the twin challenges of the disappointing summer weather and the smoking ban," said Young's chief executive Stephen Goodyear.

“Trading in our pubs in the first six weeks of the second half to date has been resilient, with managed house sales up 8.7% and up 8.3% on a same outlet like for like basis (up 1.4% on an uninvested basis).

"There are clearly some continuing uncertainties facing the market generally, in particular how the smoking ban might affect trade over the colder winter months, although given the ‘summer’ we had this contrast may be less obvious. It has also still to be seen whether the summer’s economic problems result in a dip in consumer confidence which, in turn, could affect leisure spending.

“Despite these challenges, we believe Young's is in very good shape and we are confident in the outlook for the business for the year as a whole.”

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