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Young's profits from Rugby World Cup despite England's early exit

12 November 2015 by
Young's profits from Rugby World Cup despite England's early exit

Young's has reported a 3.7% rise in pre-tax profit to £19.5m in its half-year trading figures.

For the 26 weeks to 28 September 2015 revenue grew 8.3% to £126m driven by a strong performance during the Rugby World Cup and significant contributions from new acquisitions such as the Canonbury in Islington and the Grocer in Spitalfields Market.

Premium managed houses, which account for over 94% of revenue, saw like for like sales up 5.5% and adjusted operating profit up 8.1%.

Some £20.8m was invested in the division, with £14.1m on Young's pubs, £1.9m on Young's hotels and £4.8m on Geronimo pubs. That included £8m on new pubs.

Its hotels, which include the Dog & Fox in Wimbledon and Brewers' Inn in Wandsworth, delivered occupancy of 78.5% across the 474 rooms, while revpar was up £3.42 to £63.79.

Young's added that it supported the National Living Wage and was reviewing its pay structure to account for the new legislation, as well as ensuring it applies to all those over 18, not just over 25.

It estimates the cost of implementation of the National Living Wage being £2m. Young's said its impact would be offset by "efficiencies created by the recent reorganisation of the Managed House division and through additional productivity, purchasing, technology and other efficiencies."

Chief executive Stephen Goodyear said: " Our well-invested and well-located pubs, premium product range and the energy and dedication of our teams are crucial to this success. In addition we continue to see the benefit from a number of newly refurbished pubs providing excellent contributions to the success of the first half.

"The second half will benefit from a full contribution from five recent acquisitions including most recently the Canonbury in Islington and the Grocer in Spitalfields Market, two scheduled new openings and the re-opening of a number of our London pubs currently under development.

"Momentum has continued into the autumn. Many of our pubs, in south west London in particular, have a deep-rooted rugby heritage and have thrown themselves into the World Cup. Despite England's early demise, they have generated good business from both local and visiting rugby fans alike."

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