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Managed house revenue rose 29.1% to £165.0m, with like-for-like sales up 6.0% on the previous year. Managed house operating profits were up 20.6% at £35.3m, and up 5.2% on a like-for-like (LFL) basis. However, the division's operating margin eased to 21.45 from 22.9%, reflecting Geronimo's lower operating margins and also the impact of what the group calls "immature sites" where higher than normal levels of staffing costs are expected in the early days of a new pub.
Adjusted earnings per share (EPS) rose 17.8% from the year before to 33.41p, topping expectations of EPS of 31.74p. Managed estate booming
Revenue in the 52 weeks to April 2nd rose to £179.0m from £142.6m the year before, boosted by a full year's contribution from Geronimo Inns as against just 16 weeks the year before, and ahead of market expectations of £173.7m. Underlying profit before tax of £21.3m was marginally ahead of expectations of £21.1m. The group registered a statutory loss before tax of £5.4m versus a profit of £15.8m the year before, as a result of a £29.1m exceptional charge relating to the revaluation of the group's pub and hotels estate. The loss is purely a paper one which the group is obliged by accounting regulations to recognise.
Young's evolution into a pure pubs group after the disposal of its brewing interests last year has put the board in a happy mood which even the recent dismal weather cannot spoil. "The disposal of our stake in Wells & Young's has allowed us to focus on our core, premium pub strategy," claimed Stephen Goodyear, Chief Executive of Young's, as the group unveiled a 17.4% increase in underlying profit before tax.
Commenting on today's announcement, Young's Chief Executive, Stephen Goodyear said: "This transaction is mutually beneficial for both Young's and Charles Wells. Young's is focused on investing in its premium pub estate whilst Wells & Young's is looking to invest in developing new and existing beer brands. We are pleased to retain good supply agreements and our customers will therefore continue to enjoy their customary array of quality cask ales and lagers throughout our estate."
Wells & Young's Brewing Company Limited Young & Co.'s Brewery, P.L.C. ("Young's" or the "Company") announces that it has today sold its 40% shareholding in Wells & Young's Brewing Company Limited ("Wells & Young's") to Charles Wells Ltd ("Charles Wells"). Wells & Young's was formed in 2006 following the merger of the Company's brewing operations with those of Charles Wells, with Charles Wells holding a majority 60% stake. The consideration payable for the Company's shareholding is £15.1 million in cash. £5.1 million is payable in February 2012, with the remaining £10 million being payable in two equal amounts in February 2013 and February 2014. As at 4 April 2011 the net book value of Young's investment in Wells & Young's was £15.3 million. The disposal allows Young's to increase its focus on its portfolio of managed and tenanted pubs in London and the South of England while at the same time allowing Wells & Young's to continue to develop new and existing brands. Young's will use the consideration from the transaction to invest in the further development of the Young's and Geronimo pub estates. The existing, exclusive three-year rolling supply agreement with Wells & Young's for the supply of drink to the Company's pub estate has been amended. There are now two agreements: one for beers and ciders, the other for wines and spirits. Both are two-year rolling agreements but Young's cannot give notice of termination within first two years. The Company's board of directors believes that the pricing of the supply agreements is in line with our existing and market rates and will not impact existing margins. The licences granted to Wells & Young's in 2006 in respect of the Young's beer brands remain in place and Wells & Young's is fully committed to developing these brands. In the 53 weeks to 4 April 2011, Wells & Young's contributed £2.6 million to the Company's total adjusted profit before tax. However, as previously announced, the ongoing profitability of the existing business will be impacted by the loss of the Corona licence.
http://www.investegate.co.uk/Article.aspx?id=201108090700119793L
London focus boosts Young & Co Date: Thursday 26 May 2011 LONDON (ShareCast) - London-focused brewer and pub and hotel operator Young & Co’s concentration in the capital helped it post higher profits in the 53 weeks to 4 April. Adjusted pre-tax profits were up by 7.2% from the previous year at £20.1m on revenues that rose by 11.8% to £142.6m. “Despite the ongoing backdrop of constrained consumer spending, the group has delivered a good set of results for the period whilst retaining our premium position and has seen strong momentum since the year end,” said chief executive Stephen Goodyear. "We continued to invest in our managed and tenanted pubs during the period, and our recent investment in our hotel business is now clearly bearing fruit.”
Stephen Goodyear, Chief Executive of Young's, commented: "This has been a productive and exciting year for Young's both with the trading improvements we are seeing in our business and the acquisition of Geronimo in December. "Despite the ongoing backdrop of constrained consumer spending, the group has delivered a good set of results for the period whilst retaining our premium position and has seen strong momentum since the year end. "We continued to invest in our managed and tenanted pubs during the period, and our recent investment in our hotel business is now clearly bearing fruit. "Overall, Young's is in very good shape. The integration of Geronimo is proceeding as planned and the synergies we envisaged at the time of the acquisition are coming through. Our strategy is focussed on developing our existing sites to their full potential, whether as a Young's or Geronimo pub, and on continuing to grow our managed estate. We are very excited about the potential for both brands. "Although consumer spending is likely to remain under pressure in the near term, we are cautiously optimistic about the outlook for the current year as a whole. Overall, we believe that the quality and growth potential of our estate will help us to mitigate the effect of what remains a very fragile economic recovery"
· Good performance across all areas of the business; · Managed house revenue increased 13.2% to £127.8 million, with same outlet like for like revenue up 1.9%, and operating profit up 11.1%; · Better occupancy and room rates have driven RevPar (revenue per available room) up 14.2% at £44.11 and hotel revenues up 15.2%; · Tenanted business like for like revenue up 1.2%, and operating profit up 1.9%; · Solid performance at Wells & Young's; · £60.0 million acquisition of Geronimo in December 2010 fits well with our premium London managed houses expansion strategy; integration progressing as planned; · Net debt increased by £60.0 million to £122.6 million, reflecting Geronimo acquisition; balance sheet remains robust; · Progressive dividend policy maintained; proposed 2.0% increase in the final dividend to 6.90 pence per share, resulting in a total dividend for the year of 13.26 pence (2010: 13.00 pence); · Very strong trading in managed estate in first seven weeks of current year, up 34.2% in total (including Geronimo) and up 8.8% on a like for like basis.
http://www.investegate.co.uk/Article.aspx?id=201105260700123095H
With the 200 pound per day London Emission charge coming into effect on the fourth of February in mind do Youngs still deliver locally by dray horse? Regards YB