Young's remains robust

London-based brewer and pub operator Young & Co has posted modest increases in sales and profits, despite a difficult trading climate.

During the 26 weeks to 28 September turnover rose by 2.9% to £55.4m and, when last year's exceptional profit is stripped out, pre-tax profit increased by 0.3% to £4.7m.

Chairman John Young commented: "Against the backdrop of a challenging summer Young's showed its resilience in the first half. Trading conditions in London were particularly difficult, with relentless job cuts in the City, reduced tourist numbers, increased staff costs and insurance premiums, all compounded by poor weather and the cost burden of increased regulation.

"Conditions have not changed significantly since the period end, but despite the many uncertainties, both economic and political, the Board faces the future with confidence because it believes that its conservative strategy will deliver long-term value in these difficult trading conditions."

During the period, Young's invested £8.6m in its pubs, including big developments at the Rose and Crown in Wimbledon, the Bishop out of Residence in Kingston and the Dulwich Wood House, all in south London.

After transferring seven managed pubs to tenancy, the managed estate has been reduced to 124 pubs.

Managed house turnover was up by 2.1% and profits were up by 3.8%.

Revenue per available room in its pubs with bedrooms fell by £2.97 to an average £39.66, as the group cut rates to maintain occupany in tourist-hit London.

The number of bedrooms in the Young's estate increased by 19 to 355 following the development of the Rose & Crown and the purchase of the Dunstan House Inn at Burnham-on-Sea, Somerset.

Profits at the company's 82 tenanted pubs were down by 2.4%.