Coronavirus Update

Young & Co's Brewery - Preliminary Results March 2021

This content has been sourced from: https://www.investegate.co.uk/young---38--co--39-s...

YOUNG & CO.'S BREWERY, P.L.C.

PRELIMINARY RESULTS FOR THE 52 WEEKS ENDED 29 MARCH 2021

WELL-POSITIONED FOR RECOVERY AND LONG-TERM GROWTH

 

2021

2020

 

 

£m

£m

 

 

 

 

 

Revenue

90.6

311.6

 

 

 

 

 

Adjusted operating (loss) / profit(1)

(34.0)

46.5

 

 

 

 

 

Adjusted (loss) / profit before tax(1)

(44.1)

37.7

 

 

 

 

 

Adjusted EBITDA(1)

(0.3)

79.6

 

 

 

 

 

Net debt

(248.7)

(280.4)

 

 

 

 

 

Operating (loss) / profit

(35.1)

37.9

 

 

 

 

 

(Loss) / profit before tax

(45.2)

29.1

 

 

 

 

 

Net assets

645.4

590.8

 

 

 

 

 

Net cash generated from operations

(23.0)

72.5

 

 

 

 

 

Adjusted basic (loss) / earnings per share(1)

(66.63p)

60.18p

 

 

 

 

 

Basic (loss) / earnings per share

(68.23p)

39.37p

 

 

 

 

 

Dividend per share

-

10.57p

 

(interim and recommended final)

 

 

 

 

 

 

 

Net assets per share(2)

£11.04

£12.05

 

 

 

 

 

 

 

 

 

All the results above are from continuing operations

(1) Reference to an "adjusted" item means that item has been adjusted to exclude non-underlying costs (see notes 4 and 5).

(2) Net assets per share are the group's net assets divided by the shares in issue at the period end.

 

KEY POINTS FROM AN UNUSUAL YEAR

The results for the year and the actions taken to maintain the group's historically strong financial position reflect the significant impact of covid-19 restrictions that were in place for the majority of the year and the closure of our pubs and hotels for almost nine months:

Significant action taken to preserve the group's historically strong financial position and retain flexibility to invest in the future growth of Young's:

  • Secured additional financing of £88.4 million gross proceeds through an equity issue and £20.0 million through a new bank facility
  • Agreement with our lenders to replace existing covenant tests with a £25.0 million monthly available liquidity test through to 31 March 2022
  • Debt at year-end (excluding lease liabilities and arrangement fees) of £170.1 million, headroom of £114.9 million on our committed debt facilities

Total investment of £17.0 million to enhance our managed estate, including:

  • Upgrades to our outdoor trading spaces
  • Adding boutique rooms and transforming bar and restaurant spaces
  • Relaunching our Burger Shack brand and rolling out an additional 10 new Burger Shacks
  • Opening two new pubs: Enderby House in Greenwich and Alban's Well in St Albans

Total group revenue of £90.6 million, approximately 30% of the previous year:

  • Managed house revenue of £87.0 million, with an adjusted operating loss of £18.6 million
  • Ram Pub Company revenue of £3.3million, with an adjusted operating loss of £0.7 million

The timing of our financial year means that we absorbed most of the impact from covid-19 in one year

In light of this year's disruption to our business amongst other things, the board concluded that it was not appropriate to recommend payment of a final dividend. The board is very mindful of the importance of dividends to Young's shareholders and intends to resume dividend payments as soon as is appropriate, although no decision has been made when that will be

Outdoor trading in the 144 pubs that we were able to open on 12 April has been encouraging, achieving 85% of normal trade over a 5-week period and we are pleased to have opened all our remaining pubs this week

Patrick Dardis, Chief Executive of Young's, commented:

"We were able to navigate our way through the pandemic, despite the last financial year being one of the most challenging in our 189-year history. I am extremely proud of the way our teams have reacted to the extraordinary challenges that we have faced. The absolute professionalism of our pub managers and their teams has enhanced our reputation as a highly responsible pub operator and underlined the exceptional quality of the Young's business."

"Despite the many lockdowns and disruption to our business, the financing decisions taken during the summer allowed us to continue to make significant investments in our pubs, with some truly transformational projects. We expect to see excellent growth from that investment this year and beyond." 

"We are confident with the steps we have taken to ensure Young's continues to be in a position of strength and there is potential for a strong recovery this summer. April has started better than planned, with future bookings also looking strong. With this in mind, the board expects the business to get back to pre-covid-19 levels of trade and margins by the end of June, assuming the roadmap, and in particular the 21 June 'freedom day', is not compromised."