Young’s: Pub chain shrugs off inflation as London acquisitions spur revenue bump
Young & Co’s Brewery provided a cheery update to investors this morning as the pub operator revealed a 8.3 per cent lift in revenues in the first thirteen weeks of the year.
The 220-strong pub chain said it was boosted by a string of acquisitions it made last year in London and the wider UK, including the Marquess of Anglesey in Covent Garden and the Clapham North in south-west London.
As energy bills and inflationary issues in pub supply chains show signs of easing, Young & Co said the business is looking forward to the Rugby World Cup this autumn for an extra boost to business.
“The strength of our balance sheet leaves us well-placed to make further investments and continue to generate good returns for shareholders over the long term,” they said.
The update came ahead of the group’s AGM today, which will be chairman’s Stephen Goodyear, penultimate annual meeting before he steps down from the board in 2024.
Goodyear served as Young’s chief executive between 2003 to 2016 and will be replaced by Steve Cooke, a corporate lawyer from Slaughter and May.
“Steve’s experience will be invaluable as Young’s continues to execute its proven growth strategy,” Goodyear said.
He will join the board as a non-executive director on 1 November 2023 before becoming non-executive chairman in July 2024.
This comes amid reports UK pubs are closing at a quicker rate than during the pandemic, as the cost of energy has hit suppliers, and inflation has impacted punters.
It was reported this week, that more than £4bn had been spent on beers in shops and supermarkets, consumed at home instead of pubs, as Brits look for cheaper alternatives. The price of a pint in the capital is consistently above £7 now.
J.D. Wetherspoon Boss Tim Martin has even suggested Brits should get used to £8 pints.