4th Jun 2020 12:10
(Alliance News) - Young & Co's Brewery PLC on Thursday said annual profit was hurt by one-off costs and a GBP13.0 million revenue hit from the Covid-19 pandemic.
In the UK pub operator's financial year ended March 30, revenue did edge 2.6% higher to GBP311.6 million from GBP303.7 million. Pretax profit fell 26% to GBP29.1 million from GBP39.5 million, however.
Finance costs rose 72% to GBP8.6 million and adjusting items more than doubled to GBP8.6 million from GBP3.9 million.
The adjusted items included a GBP7.0 million downward movement on property revaluations, Young's said.
The Wandsworth, London-based company's financial year didn't end soon enough to be spared some impact from the Covid-19 outbreak.
"The coronavirus pandemic has had a significant impact on these results. Closure of our pubs for the final 10 days of the financial year and the preceding downturn in trade resulted in an estimated GBP13.0 million shortfall in revenue, with a disproportionate impact on profits, estimated to be GBP7.7 million due to the limited opportunity for mitigating actions," Young's said.
The pub firm has decided against paying a final dividend to save cash. This meant its full-year payout was cut by 49% to 10.57 pence from 20.78p.
Chief Executive Patrick Dardis said: "We are grateful for the positive moves made by the chancellor, extending the Job Retention Scheme to October and the GBP14.5 million 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."
Pubs in the UK have been forced to close due to lockdown measures.
Back in March, Young's said it furloughed a majority of its workforce
Shares in the company were 0.9% lower at 1,140.00p each in London on Thursday shortly after midday.
By Eric Cunha; [email protected]
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