Key facts
- Young's reported a nine percent increase in revenue over the past 14 weeks.
- England's performance in the World Cup was cited as a factor in the trading boost.
- Favorable weather and the Wimbledon Championships also contributed to strong performance.
- Young's profit before tax more than doubled to £41 million in the year ending March.
- The company is in the process of moving its listing from the AIM market to the main market.
Young's has experienced a significant increase in trading, attributed in part to England's performance in the World Cup. The pub operator reported a nine percent rise in revenue over the last 14 weeks, with the initial stages of the tournament providing a welcome boost.
Pubs have faced difficult trading conditions recently, including rising business rates and employment costs. However, companies like Young's had hoped for a summer uplift driven by public support for the national football team.
Simon Dodd, chief executive of Young's, stated that the company's "premium, well-invested and differentiated pubs and bedrooms continue to deliver." He highlighted that strong performance in the first quarter was supported by favorable weather, a busy summer of sport, and England's World Cup success.
According to the British Beer and Pub Association, pubs served six million pints during England's round-of-16 victory against Mexico, a substantial increase over an average Sunday night. Greene King reported over 5,300 bookings for the same match. Sales of cider and lager at pubs managed by Heineken UK jumped by 127 percent and 76 percent respectively on Monday morning.
Dodd also noted that the start of the Wimbledon Championships and contributions from the recently acquired Cubbitt House estate were aiding Young's in overcoming a "challenging" economic backdrop. Young's acquired the London-based pubs for £30 million earlier this year and plans further expansion.
Pub landlords have expressed criticism regarding government policies, particularly the "nice pub" tax, which factors location and amenities into business rates. Despite these challenges, Young's saw its profit before tax more than double to £41 million in the year ending March, with revenue increasing by 4.6 percent to £508 million.
The company is currently transitioning from the AIM stock exchange to the main market, a move expected to attract new institutional investors and potentially boost its share price.