Geronimo acquisition helps revenue growth at Young’s
PUB chain Young’s yesterday posted revenue growth of 25 per cent following the integration of Geronimo, the inns group it bought in late 2010.
Revenues surged to £179m, boosting adjusted operating profit by a fifth to £26.2m and driving adjusted pre-tax profits up by 17.4 per cent to £21.3m.
But Young’s fell to a £7.5m pre-tax loss due to a £29.1m exceptional charge relating to the group’s revaluation procedure, which resulted in a £174m net uplift to the value of its estate.
“It’s been a landmark year for us,” Young’s chief executive Steve Goodyear told City A.M. “We’ve completed our transformation to a pure pub company after leaving our brewing venture.”
After a rocky start to the new year, which has seen like-for-like sales drop due to dismal weather, the British pub company has high hopes for the summer ahead.
“With 14 pubs along the Thames, we’re certainly looking forward to Jubilee weekend,” Goodyear said.
Young’s is also set to benefit from its new pub The Cow, the nearest pub to the entrance of the Olympic site.