Young & Co 'A' Share Price (YNGA)

Young & Co's Brewery 'A' Shares (YNGA) Director name: Mr Rupert Clevely Amount sold: 18,068 @ 799.37p Value: 144,430

Current trading and outlook Trading since the period end has been positive despite the fact we compete against very strong comparatives last year when the "Indian" summer stretched throughout October. Managed house revenue in the first seven weeks of the second half was up 9.4% in total and 6.0% on a like for like basis. We have opened two new Young's managed pubs since the period end - the Cutty Sark (Greenwich) and the Narrowboat (Islington). We have also reopened two pubs: the Foley, following its transformation into a beautiful 17 bedroom hotel, and the King's Head. The much missed Wheatsheaf (Borough Market) which has been closed for three years will re-open before Christmas. We will continue to add to both the Young's and Geromino estates as and when suitable and sensibly priced opportunities - either individual pubs or packages - become available. We remain focused on driving profitable growth through the proactive management of our well invested estate. The consumer, understandably, remains cautious, but our premium offer continues to prove attractive. With the quality and talent within the business and our balance sheet strength, we believe that Young's remains in a strong position to continue to grow and deliver value to our shareholders.

Interim statement Revenue was up 10.7%, at £100.2 million. Profit before tax was £14.0 million and, once adjusted for exceptional items, was up 11.2% at £13.9 million. The summer was definitely one of contrasting fortunes with a markedly different profile to last year's. The first quarter of our year was the wettest one on record which compared with a glorious late spring in 2011. The summer saw London, and the nation as a whole, rejoice in the Diamond Jubilee and the Olympic and Paralympic Games. This set of results reflects our success in making the most of the opportunities presented by the summer of celebration and our ability to generate superior returns from our high quality estate. Our premium strategy, alongside our location in London and the south of England, has enabled us to deliver impressive like for like sales growth. We continue to refresh the quality and variety of our product portfolio and to invest in our pubs and our workforce to ensure we maintain our pub's ambience and high service standards. We are soundly financed and asset backed with a progressive dividend policy. At the period end, we operated an estate of 237 pubs of which 195 were either freehold or on long leases on peppercorn rents. Net debt at the period end was £117.1 million, our interest costs were covered 5.5 times by operating profits and gearing was 35.8%. In light of all of the above, the board has decided to raise the interim dividend for the 16th consecutive year. A dividend of 7.02 pence per share, an increase of 5.1%, is expected to be paid on 14 December 2012 to shareholders on the register at the close of business on 30 November 2012.

Stephen Goodyear, Chief Executive of Young's, commented: "These excellent results reflect some benefit from the extraordinary events we have seen in London this summer; they have also been achieved despite some periods of truly awful weather. They are therefore testament to the ability of our people to make the very best of our high quality and well invested estate whatever the circumstances. "We have seen very encouraging like for like growth from both Young's and Geronimo, and across liquor, food and accommodation sales. We have continued to invest in the estate and look forward to seeing the benefit of recent openings in the second half. "Despite continued caution on the part of the consumer, I believe we are well positioned to continue to generate profitable growth and therefore attractive returns for our shareholders."

http://www.investegate.co.uk/young-38-cos-brew.-(ynga)/rns/half-yearly-report/201211220700117447R/

Young's premium rating reflects the high-quality nature of its operation, but the reliable long-term growth prospects more than justifies a forward PE ratio of 18. The company - which is being valued on a small discount to net asset value - is also backed by over £500m of property assets and land. So, with a pre-results rally looking very possible.....but as always dyor and good luck.........