Brewer and pub operator Young & Co has seen full year pre-tax profit drop by 63% amid “turbulent market conditions” but insisted it remains “well positioned to meet the challenges of the year ahead”.
Pre-tax profit fell to £4.2m for the 52 weeks to 28 March from £11.6m last year, while revenue rose 3.2% to £126.1m.
“Market conditions remain difficult, not least as a result of rising unemployment,” Young's said, in a trading update.
Sales within its managed pubs in the last 13 weeks rose 3% compared with last year but like-for-like sales dropped 1.3%. Revenue for managed pubs was up 4.5% to £111.4m “reflecting the acquisitions and investments made in the business over recent years”.
Young's 122-strong managed pub estate saw operating profit for the year at £25.9m, nearly £1m lower than in 2008, while its earnings before interest, tax, depreciation and amortisation remained largely unchanged at £32.5m.
Young’s chief executive Stephen Goodyear said: "We have a cash-generative business, well-invested estate, great pubs in great locations, robust balance sheet and a very strong brand.
“We are well positioned to meet the challenges of the year ahead.”
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By Kerstin Kühn
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