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Trade holding up at Youngs
London brewer, Young’s, has reported results for the year to 29 March showing turnover up 1.5 per cent to £107.8m, operating profit up 2.5 per cent to £12m and profit before tax up 6.1 per cent to £9.4m.
The company’s own beer production was unchanged from last year in a market which continues to decline. Young’s Bitter volumes were up 6.6 per cent following its relaunch, with other large increases being seen in Waggledance, up 8.5 per cent, and Winter Warmer, up 21.2 per cent.
Following the success of the relaunch of Young’s Bitter, the company intends to repeat the exercise on another of its products, the premium cask ale, Young’s Special.
Profits at the managed house division rose by 2.9 per cent, despite turnover remaining at last year’s levels. During the period, nine pubs were transferred to tenancy, two were sold, three were acquired and Next Door, a site in Oxford bought last year, was opened after redevelopment. At the end of the year the group had 123 pubs and inns under management.
The tenanted business – which ended the year with 84 tenancies – saw profits increase by 3.1 per cent, benefiting from the transfer of the nine pubs from the managed sector. A further 13 transfers will take place during the coming year.
Free trade enjoyed a year in which volumes were up 4 per cent. This was led by cask ale, which was up 8.3 per cent overall and included a 21.4 per cent increase in Young’s Bitter.
Net profit at Cockburn & Campbell increased by 7.5 per cent as a result of continued growth in wine sales.
During the year a total of £16.5m was invested in the business, with £7.3m going on the purchase and development of new sites and the acquisition of the freehold in four leases, £6.5m being spent on refurbishments to existing properties and the balance on improvements to the brewery.
As previously announced, chief executive Patrick Read retires in July and will be replaced by current sales and marketing director, Stephen Goodyear.
Looking ahead, the company said: "It is hard to imagine a more challenging set of market conditions than those which have faced the business during the past year. We expect a rather more stable, albeit still challenging environment going forward, but it is too early to predict how the year will turn out." Details: www.youngs.co.uk