Better weather serving up good sales results at pub chain Youngs

YOUNG’S HAS hailed a strong start to trading as it capitalised on good weather to defy Brexitrelated cost increases.

Sales were up 8.8 per cent in the first 13 weeks of the pub chain’s financial year, rising by 5.2 per cent on a like-for-like basis. This compared with like-forlike sales growth of 8.6 per cent during the same period the year before.

Young’s acquired seven pubs last year, and said the new sites were integrating into the business well.

The company’s shares were up 0.19 per cent to 1,748.25p in morning trading, with analysts saying they could target 1,760p.

Young’s chairman Stephen Goodyear said the results were “very pleasing” given the high level of growth the year before.

“We are, once more, benefiting from a long period of very warm weather,” he said.

“The macro-economic and political environment remains challenging and the continued uncertainty surrounding Britain’s future trading relationship with Europe is unhelpful for businesses.

“In addition, our sector faced huge cost headwinds last year and, while these pressures have continued into the current year, they have slightly moderated.”

However, he said the pub company was confident in its strategy, and that it would continue to invest in its store estate, technology and staff.

Analysts at Liberum said: “The industry continues to face significant cost headwinds, albeit they have slightly moderated, with Brexit uncertainty unhelpful for the business.

“The boost to higher margin drinks sales from recent weather, alongside other efficiency programmes should help to mitigate this and the company maintains its previous guidance for flat margins this year.”

The recent scorching weather and England’s strong performance in the World Cup are expected to have provided a boost for sales of alcohol, which will be welcomed by pub operators.