Latest news with #pubindustry
Daily Mail
19 hours 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
07-05-2025
- Business
- The Sun
Wetherspoons pint prices to rise by 20p in DAYS as Tim Martin blames Labour Budget tax hikes
THE boss of Wetherspoons has warned the price of a pint will go up by 20p in the coming days as breweries are already pushing through hikes on the back of costs pressures from the Budget. Sir Tim Martin said the government kept heaping pressure on pubs through higher taxes and costs. 1 The pub industry had already faced demands for higher prices from breweries, which had increased their prices by around 7p per pint in the past week, he revealed. "It means pints in pubs are going to go up by on average 15p to 20p this month", he said. The British Beer and Pub Association recently warned that the price of a pint is expected to exceed the £5 mark, up from the current average of £4.80. Breweries are reacting to increases in the National Living Wage and National Insurance contributions, which came into effect at the start of April. The National Living Wage rose by 77p an hour to £12.21, while the rate of employer National Insurance contributions increased from 13.8% to 15%. Plus, the threshold at which businesses begin paying this tax was reduced, dropping from £9,100 to £5,000 a year. Sir Tim warned: "The risk to the country is people either in the UK or coming from abroad will thing that it's too expensive to set up a business in the UK." The latest price hikes follow a similar move in January, when Wetherspoon told The Sun it had raised the prices of certain drinks and meal deals by up to 30p. Despite rising costs, however, the pub chain boss remained confident that customers would stick with their favourite drinks. Sir Tim said: "Guinness is pretty expensive but we are selling plenty of the stuff. Why are so many pubs and bars closing? "We have also introduced Jaipur ale, which is more pricey but doing very well. "Our Stella also outsells Bud Light, which is cheaper." The Wetherspoon boss confirmed he remains "very keen" on the idea of opening pubs overseas through the company's rapidly growing franchise business. The pub giant already operates a few franchised pubs on university campuses and seven pubs within Haven Holiday parks. "It's a good sign the holiday parks are doing very well so we think it will do well with people overseas, especially where Brits holiday." Sir Tim added that he is "open to anything," including launching pubs in airports and campsites. Wetherspoons revealed like-for-like sales had jumped 5.6% in the 13 weeks to April 27 this morning. How can I save money at Wetherspoons? FREE refills - Buy a £1.50 tea, coffee or hot chocolate and you can get free refills. The deal is available all day, every day. Check a map - Prices can vary from one location the next, even those close to each other. So if you're planning a pint at a Spoons, it's worth popping in nearby pubs to see if you're settling in at the cheapest. Choose your day - Each night the pub chain runs certain food theme nights. For instance, every Thursday night is curry club, where diners can get a main meal and a drink for a set price cheaper than usual. Pick-up vouchers - Students can often pick up voucher books in their local near universities, which offer discounts on food and drink, so keep your eyes peeled. Get appy - The Wetherspoons app allows you to order and pay for your drink and food from your table - but you don't need to be in the pub to use it. Taking full advantage of this, cheeky customers have used social media to ask their friends and family to order them drinks. The app is free to download on the App Store or Google Play. Check the date - Every year, Spoons holds its Tax Equality Day to highlight the benefits of a permanently reduced tax bill for the pub industry. It usually takes place in September, and last year it fell on Thursday, September 14. As well as its 12-day Real Ale Festival every Autumn, Wetherspoons also holds a Spring Festival. What else is happening at Wetherspoons? Despite rising cost pressures, Wetherspoon is set to open 15 brand-new pubs in the coming days, following a recent surge in sales. Six locations already have confirmed opening dates, which The Sun can exclusively reveal. Wetherspoon also announced that approximately nine more pubs are expected to open by July 2026. First on the list is The Conister Arms in Douglas, Isle of Man, set to open on Wednesday, May 14. Next is Walham Green at Fulham Broadway, South West London, opening on Tuesday, June 17. The Dictum of Kenilworth in Warwickshire will follow, opening on Wednesday, July 30. On Tuesday, August 26, The Sun Wharf on Tooley Street near London Bridge will welcome punters. The King of Essex in Basildon is scheduled to open on Tuesday, September 23. Finally, a new pub in Merchant Square, Paddington, is also set to open later this summer, though the exact date has yet to be confirmed. Wetherspoon is also launching a new "gourmet" food range from May 14, adding exciting new burgers to its iconic menu. Top of the list is The Big Smoke, a towering burger packed with pulled BBQ beef brisket, American-style cheese, and maple-cured bacon—offering a perfect balance of sweet and savoury flavours. For those who enjoy a bit of spice, the Buffalo Burger is sure to be a hit. It features a crispy fried buttermilk chicken breast, tangy blue cheese, fiery naga chilli sauce, and melted American-style cheese. Finally, cheese lovers can indulge in the Cheese Meltdown, a rich and creamy creation loaded with American-style cheese and topped with a blend of melted Emmental and Cheddar sauce. Full list of new pubs on the way WHETHERSPOONS is gearing up to open pubs in six brand-new locations, with the first set to welcome punters in just a few days. The pub giant is also planning to launch an additional nine pubs over the next financial year.
