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YNGA

0.52%
NEUTRAL

Young's Reports Strong Revenue Growth Amid Industry Headwinds

Why we think this is neutral

Young's has delivered a mixed bag of results. On the positive side, there's strong revenue growth of 24.9% and like-for-like growth of 5.7%, alongside a maintained adjusted operating margin of 14.7%. The dividend increase of 6% also signals confidence. However, these positives are tempered by a 12.6% drop in statutory profit before tax and a cautious outlook mentioning consumer headwinds and industry-wide challenges. The successful integration of City Pub Group is encouraging, but it's unclear how much of the revenue growth is organic versus acquisition-driven. While recent trading looks promising with 8% like-for-like growth in the last nine weeks, the company's warnings about economic uncertainty and government changes create a cloud over future performance. The reduction in net debt is positive, but overall debt levels remain high. In this context, Young's seems to be holding its ground in a challenging environment, but with significant hurdles ahead.

Key Points

  • Total revenue up 24.9% to £485.8 million
  • Like-for-like revenue growth of 5.7%
  • Adjusted operating margin maintained at 14.7%
  • Statutory profit before tax down 12.6% to £18.1 million
  • Net debt reduced by £19.5 million to £248.3 million
  • Total dividend up 6.0% to 23.06 pence
  • Recent trading shows 8.0% like-for-like growth in last nine weeks
  • Successful integration of City Pub Group completed
  • Warnings of consumer headwinds and industry challenges
  • Cautious outlook due to economic uncertainty and government changes

Summary

The pub operator reported strong revenue growth and maintained margins, but faces headwinds from economic uncertainty and industry challenges. Recent trading shows promise, but caution prevails in the outlook.

Young's has reported a 24.9% increase in total revenue to £485.8 million, with like-for-like revenue growth of 5.7%. The company maintained its adjusted operating margin at 14.7% despite cost pressures. However, statutory profit before tax decreased by 12.6% to £18.1 million. The integration of City Pub Group has been successful, realizing synergies and operational benefits. Recent trading shows promise with like-for-like managed house revenue up 8.0% in the last nine weeks. Despite these positives, Young's warns of headwinds facing consumers and wider industry issues. The company has reduced its net debt by £19.5 million to £248.3 million, but total debt remains high at £336.3 million. The board has recommended a 6.0% increase in total dividend to 23.06 pence, reflecting confidence in performance despite challenges ahead.

Key Dates

July 17, 2025
Final dividend payment
July 2025
Annual General Meeting
ANNUAL RESULTS