Young’s toasts bumper sales as boss steps down but pub group remains mindful of cost of living squeeze
- Young’s said it enjoyed an ‘excellent start’ to trading in its current financial year
- Group said revenue was up 39.7% in the first thirteen weeks of the period
- Boss Patrick Dardis stepping down and group mindful of mounting pressures
Young & Co’s has maintained ‘strong trading momentum’ since its strong finish to 2021, with the pub group toasting an ‘excellent start’ to its current financial year.
The group told investors on Tuesday that revenue was up 39.7 per cent in the first 13 weeks and up 34.9 per cent year-on-year on a like-for-like basis.
However, Young’s cautioned on mounting inflationary pressures and the risk more people may end up spending less money in pubs as disposable income levels fall.
Upbeat: Young’s said it had enjoyed an ‘excellent start’ to its new financial year
Young’s also said that its chief executive Patrick Dardis would step down following today’s annual general meeting after six years in the role.
He will be succeeded by Simon Dodd, currently the group’s chief operating officer, who was recruited three years ago with succession planning in mind. Dardis will remain on the board in order to ensure an orderly transition to Dodd.
In a trading update today, the London-listed company said it will benefit from the nine acquisitions it made last year, as well as the more recent acquisitions of the Bedford Arms in Chenies Village and Merlins Cave in Chalfont St Giles.
Chairman Stephen Goodyear said: ‘The board feels that Young’s is well placed to manage the impact of the current inflationary environment on our cost base, but are very mindful of the potential impact that the inflationary environment could have on consumer sentiment and ultimately spending in our pubs.
‘We will continue to invest in the future growth of the business, sticking to our strategy of running premium, differentiated and well-invested pubs and hotels.
‘The strength of our balance sheet leaves us well-placed to make further investments and generate good returns for the long term.’
Young’s shares were up 2.59 per cent or 29.00p to 1,149.00p in early morning trading. The group’s share price has fallen by nearly 30 per cent in the past year.
In its latest annual results published in May, Young’s reported a pre-tax profit of £41.8million. Its revenue surged by 251 per cent, after being hit hard by lockdowns and temporary closures the year before.