Brewery offsets COVID-19 “disproportionate impact” on profits with acquisition strategy
Pub specialist Young’s & Co Brewery expects to “return to profitable growth” despite a dip in its year-end profits.
In its results for the 52 weeks ending March 30, the firm saw a drop in pre-tax profits of 24.3 per cent.
The firm has attributed this drop to the COVID-19 disruption and subsequent closure of its pubs for the final 10 days of the financial year, resulting in an estimated £13m shortfall in revenue.
The group, which operates pubs in and around South West London, invested £70.8m over the course of the year into upgrades of its existing portfolio, as well as the acquisition of five new businesses.
Patrick Dardis, chief executive of Young’s, commented: “I am proud of the performance of our business this year despite the unique challenges that we have faced. These results demonstrate the continued strength of our strategy of operating a differentiated, premium and well-invested pub estate.”
“The purchase of five of the finest pubs in and around our south-west London heartland and the Surrey suburbs was a real stand out acquisition for us. Their premium offer is a perfect fit for Young’s.”
“We are grateful for the positive moves made by the Chancellor, extending the Job Retention Scheme to October and the £14.5m relief we will receive from the business rates holiday to ensure that great businesses like ours survive these particularly tough times.”
“We are confident with the steps we have taken to safeguard our business from the immediate threat of coronavirus. The board expects the business to be in a position to return to profitable growth when this unprecedented period is at an end and conditions allow, and we remain confident in our proven strategy.”
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