London-based pub company Young's has seen its pre-tax profit rise 4% to £11.9m for the 26 weeks to 27 September, thanks to a strong performance from its hotels.
Revenue at the company was also up slightly for the period, by 0.7% to £67.7m.
Young's said it had seen the benefit of a continued focus on its hotel offering, with accommodation revenues up 18.7% and revpar up 20.1%. The company has 16 pubs with rooms in and around London.
Revenue at the firm's managed houses was also up 0.9% to £60.3m, with like-for-like sales up 0.8% and operating profits up 2.7%. The company also invested £6.6m in its managed houses over the period, with two new sites opened - the Dial Arch in Woolwich Arsenal and the Lass O' Richmond Hill.
But profits fell 4.2% at Young's tenanted division as it increased some support packages to its pubs. The company said it "maintained" revenue on a total and like-for-like basis.
Youngs' brewing business, Wells & Youngs, which it runs separately as a joint venture with Charles Wells, contributed £2.1m to Young's adjusted profit before tax.
Commenting on the results, Young's chief executive Stephen Goodyear, said: "Young's has turned in a good result, reflecting a resilient performance in our pubs, and a particularly positive showing from our hotels, which have been the focus of recent management attention.
"We have continued to invest both in new sites and in the development of our existing estate. Despite this, net debt remained almost unchanged at £62.6m. The second half has started positively with managed house revenue up 3.4% in total and up 1.8% on a like-for-like basis. The extra burden on consumers over the coming months, with tax rises, job losses and the Government's austerity programme, gives us reason for some caution. However, we believe we are well placed to build on this performance."
By Neil Gerrard
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