Latest news with #SimonDodd
Daily Mail
4 days ago
- Business
- Daily Mail
Young's invests to beat headwinds - as boss vows no 'blanket' hikes in price of a pint
Young's will 'invest its way out of' headwinds currently facing the hospitality sector after a major acquisition helped rapidly accelerate growth last year, according to the pub group's boss. The FTSE 250-listed group saw total revenues soar by nearly a quarter to £485.8 million in the year to 31 March, largely thanks to the £162million takeover of City Pub Group late in 2023. Young's also invested £47million developing and refurbishing its 277 pub estate, helping to drive like-for-like sales 5.7 per cent higher, while slashing net debt by £19.5million to £248.3million. Boss Simon Dodd told This is Money: 'We're not acquiring at the moment - the [City pubs takeover] accelerated our growth by about five years. 'But with the National Insurance hike and other costs that are hitting our sector, we think we should invest our way out of it; invest in our people, invest in our pubs and invest in technology.' Young's, which typically invests £50million a year, has 'a number of exciting investments' currently being rolled-out, according to Dodd, including a click-and-collect service and a loyalty platform for its growing bedroom business. Dodd has previously criticised decisions made in last year's Autumn Budget, which will see the group's cost base grow by £11million a year. 'A tough macroeconomic environment for the industry seems to have been par for the course since I became CEO and Government changes coming into effect in April make life no easier,' he told shareholders. Synergies achieved from the City Pub Group takeover have helped address some of those issues, while Young's has been able to limit the need for price hikes by utilising its own staff agency in addition to other cost savings. Dodd had previously highlighted research that suggested Autumn Budget changes could result in the price of a pint rising by 20p. But he said on Wednesday the group would continue to avoid 'blanket' price hikes across its estate and maintain an annual increase of 2 to 2.5 per cent in total. Dodds added: 'We will do it on a pub-by-pub basis, some pubs won't see an increase and some pubs will charge a little bit more. 'We don't believe you can price your way out of this in terms of volume, we grew our drinks business by about 3.5 per cent in volume – we're one of the only pub companies to grow volumes. 'We have to take a cautious approach to both value and volume.' Young's 'scale and size' and 'more importantly' its strong presence in the South East of England are crucial factors in weathering the storm currently facing the sector, according to Dodd, with central London sales alone up 16 per cent on a like-for-like basis last year. He added: 'London continues to lead the way in terms of growth, West London was up 10 per cent and, our heartland, South West London, was up 6 per cent. 'London is definitely alive and kicking and is driving phenomenal growth for us as a business.' Asked how the Government could improve conditions for the sector, Dodd said: 'The one ask we will continue to ask from the Government is business rate reform. 'We bang on about it every year, but it hasn't happened yet, and that could be a real stimulus for the sector.'
Daily Mail
4 days ago
- Business
- Daily Mail
Young's hikes shareholder payouts as profits after City Pub Group takeover
Young & Co's shareholders will enjoy a higher dividend this year after the acquisition of City Pub Group helped to drive bumper earnings growth last year. The pub group shrugged off 'a tough macroeconomic environment' for the sector as adjusted operating profits surged 24.6 per cent to £71.4milliion over the year to 31 March. Revenues rocketed 24.9 per cent overall to £485.8million and rose 5.7 per cent on a like-for-like basis, thanks to a balance of volume growth and price increases. Growth was achieved despite labour cost increases of around 10 per cent as a result of last year's Autumn Budget, as well as higher utility bills. But chief executive Simon Dodd said the pub and bar business was in 'excellent shape' and 'positioned well for difficult conditions'. Young's board has recommended a final dividend of 11.53p, giving a total dividend for the year of 23.06p, up 6 per cent, 'reflecting our strong profit performance and progressive dividend policy'. Dodd added: 'Young's continues to be a leader for like-for-like sales in our sector and everything within our control is going to plan.' Like-for-like managed house revenue for the last nine weeks was ahead of last year by 8 per cent, Young's said, 'giving the Board confidence for the year ahead.' The London-listed firm also said it had completed the integration of City Pub Group into the Young's estate after the £162million deal announced in November 2023. It said: 'Head office synergies realised, and food and drink margin benefits achieved in line with the acquisition plan.' Dodd added: 'A tough macroeconomic environment for the industry seems to have been par for the course since I became CEO and Government changes coming into effect in April make life no easier. 'However, we are in excellent shape, with our differentiated approach and premium business model positioning us well in difficult conditions.' He added: 'It's been a fast start to the new financial year, with the great weather throughout April and May meaning our beautiful pub gardens and riverside locations have been packed full of customers. 'Whilst we remain mindful of the headwinds facing consumers and the wider issues that our industry will encounter, we are confident our premium, well-invested, predominantly freehold pub estate will continue to deliver profitable growth.' In January, Dodd warned that the cost of a pint would increase by 20p after the Budget's increase in employer national insurance contributions. At the time, the pub chain said it planned to raise prices by up to 3.5 per cent after Rachel Reeves' tax raid on business. This added 20p to the cost of typical pint of beer in London – taking it to £6.50. The group enjoyed bumper sales over Christmas and New Year.
The Sun
02-05-2025
- Business
- The Sun
We own ‘Britain's cheapest PUB' flogging pints for just 7p for touching reason… and we don't lose ANY money doing it
A PUB is pulling pints for just 7p to celebrate a special day in this country's history. Staff at The Flying Duck in Ilkley, West Yorkshire are flogging ales for 1945 prices to commemorate the 80th anniversary of VE Day. 4 4 Thirsty revellers who make it to the bar before the first 80 pints of Wharfedale Brewery Gold will pay the paltry fee to celebrate the anniversary of the end of the Second World War. The average punter is set back £5 for the privilege, meaning customers will enjoy a 99% discount for the beverage. Delighted locals joked that "Wetherspoons will be quiet for a couple of hours". The pub's Facebook post reads: "Come join us on the 8th May where we will be celebrating VE Day's 80th anniversary. 80 pints for 80 years at 1945 prices." In 1945 the price of a pint of beer was roughly one shilling and three pennies, depending on the beer and the location, which is worth around 7p. Gerard Simpson, Operations Director at The Flying Duck and Wharfedale Brewery, said: "I just thought it would be nice to do something to celebrate 80 years. "We came up with 80 pints for 80 years at 80-year-old prices. It's the one beer [at that price] we'll be serving our Gold. "We're quite lucky because as well as The Flying Duck we also have a brewery, Wharfedale Brewery, which means we're in a position where we can buy our beer for its cost so it wouldn't have an impact as a chain pub would have. "We're a community pub, we like to raise money for local charities. "I think it's nice to be able to do something and celebrate it. "People can just drink away - once the 80 pints have gone they've gone." Locals Heartbroken as Auchenmalg's Only Pub, The Cock Inn, Closes Down Thrilled social media users commented on the post. One wrote: "Wow Spoons will be quiet for a couple of hours then." Why pubs are pushing up prices The latest figures come after the British Beer and Pub Association warned the average cost of a pint across the UK will rise from around £4.80 to £5.01. It said pubs are expecting to raise their average prices by 21p. Figures from the Office of National Statistics (ONS) found the cost of a pint of draught lager in pubs jumped almost 3% in the year to January 2025. Pubs say they have been forced to push up prices because of a series of cost increases announced in last October's Budget. They say the only way they can stay open is to pass the raised costs on to customers. Simon Dodd, chief executive of Young's, said the chain planned to increase its prices by between 2.5% and 3%. Wetherspoons also recently hiked the price of some of its drinks and meal deals by up to 30p. Meanwhile Heineken increased the price of its draught beer by an average of 2.97% for pubs in February. More than 400 pubs across England and Wales were demolished or converted for other uses last year, figures from Altus Group show. As a result, the number of pubs across the two countries fell below 39,000 for the first time. 4 4
The Independent
30-04-2025
- Business
- The Independent
Pub group Young's toasts bumper sales year despite rising costs and poor weather
Pub group Young's has reported rising annual sales despite a year of 'prolonged economic uncertainty' and volatile weather. The company said like-for-like sales rose 5.7% in the year to March 31, defying what it said were 'widespread challenges' for the sector. Pubs and retailers were still struggling with higher-than-usual inflation for some of last year, while more recently they were hit by rising employment costs from policies in the October Budget. Young's has previously said a rise in national insurance contributions (Nics) would cost it about £11 million extra per year, starting in April. But it also enjoyed a bump in sales from the Euros football tournament over the summer, and a boost from its £162 million takeover of rival City Pub Group in late 2023, which brought a further 50 pubs into the Young's business. And it previously toasted bumper trade over Christmas and new year, with sales across the festive period up 10.5% year-on-year. Chief executive Simon Dodd said: 'We achieved a huge amount during the past financial year, and I am extremely pleased with this performance. 'We delivered it against a challenging backdrop, which was characterised by unpredictable British weather and prolonged economic uncertainty driven by political turbulence through the year. 'Our performance demonstrates the strength and resilience of our premium estate, coupled with the work of our phenomenal teams. 'Together, these factors have enabled our business to continue to thrive and we remain confident in our ability to deliver profitable growth.'
Scottish Sun
25-04-2025
- Business
- Scottish Sun
The cheapest place for a pint revealed and prices start at just £2.50
Click to share on X/Twitter (Opens in new window) Click to share on Facebook (Opens in new window) THE cheapest place in the UK for a pint has been revealed - and the average price is just £2.50. Pubgoers in Burnley, Lancashire, can get the cheapest pints, according to data analysed by small business comparison site Bionic. Sign up for Scottish Sun newsletter Sign up 1 Drinkers can get two pints in Burnley for less than the price of one pint in London, Belfast or Oxford Credit: Getty Coming in just slightly more expensive was nearby Bury, where a pint will set you back just £2.75 on average. Pints in St Helens, Merseyside, and Harlow, Essex, cost £3 on average. The average cost of a pint in Southport or in Blackpool is slightly more at £3.25. You would pay roughly £3.40 in Salford, or £3.50 in Blackburn. Drinkers in other cities pay almost twice as much. If you're in London, Belfast, Watford, Oxford, Cambridge, Hemel Hempstead, Guildford and Basildon, you'll be paying a huge £6. You might be surprised to find, though, that London doesn't have the most expensive pints. In Brighton and Hove, the average price is £6.05 - and in Lisburn, Northern Ireland, it's a whopping £6.10. That's £3.60 more than the cheapest average pint in Burnley. Bionic also analysed the most popular pint of choice in the UK - and found BrewDog came out on top. All the beers that have lowered in strength The analysis looked Google searches, social media trends data, and the popularity and fame of different alcohol brands. Guinness - which has got everyone talking with its "splitting the g" game - was the second most popular. Meanwhile, Black Sheep was the nation's favourite craft beer and Kopparberg was the UK's favourite cider. Why pubs are pushing up prices The latest figures come after the British Beer and Pub Association warned the average cost of a pint across the UK will rise from around £4.80 to £5.01. It said pubs are expecting to raise their average prices by 21p. Figures from the Office of National Statistics (ONS) found the cost of a pint of draught lager in pubs jumped almost 3% in the year to January 2025. Pubs say they have been forced to push up prices because of a series of cost increases announced in last October's Budget. They say the only way they can stay open is to pass the raised costs on to customers. Simon Dodd, chief executive of Young's, said the chain planned to increase its prices by between 2.5% and 3%. Wetherspoons also recently hiked the price of some of its drinks and meal deals by up to 30p. Meanwhile Heineken increased the price of its draught beer by an average of 2.97% for pubs in February. More than 400 pubs across England and Wales were demolished or converted for other uses last year, figures from Altus Group show. As a result, the number of pubs across the two countries fell below 39,000 for the first time.
