TIDMYNGA
RNS Number : 0753M
Young & Co's Brewery PLC
19 May 2022
Young & Co.'s Brewery, P.L.C.
Preliminary results for the 52 weeks ended 28 March 2022
BACK TO PROFITABLE TRADING
Financial Highlights 2022 2021
GBPm GBPm
Revenue 309.0 88.0
Adjusted operating profit / (loss) (1)
(2) 51.4 (33.2)
Adjusted profit / (loss) before tax(1)
(2) 41.8 (43.2)
Adjusted EBITDA(1) (2) 82.5 (1.3)
Net debt (173.8) (248.7)
n/a
Net debt to EBITDA(3) 2.1 -
-------------------------------------------------------- ----------- ----------
Operating profit / (loss) (1) 51.7 (34.5)
Profit / (loss) before tax from continuing
operations 42.1 (44.5)
Profit / (loss) before tax from discontinuing
operations 9.8 (0.7)
-------------------------------------------------------- ----------- ----------
Net assets 699.7 645.4
Net cash generated from operations 107.0 (23.0)
Adjusted basic earnings / (loss) per share(1)
(2) 56.26p (66.63)p
Basic earnings / (loss) per share(1) 58.83p (68.23)p
Dividend per share 18.81p -
(interim and recommended final)
Net assets per share(4) GBP11.97 GBP11.04
(1) The results exclude the impact of 56 sites which formed
a majority of the Ram Pub Company and are disclosed as a discontinued
operation in the current period. Prior period comparatives have
been restated for the application of IFRS 5 to re-present financial
information in relation to the discontinued operation (see notes
1 and 7).
(2) Reference to an "adjusted" item means that item has been
adjusted to exclude a non-underlying credit of GBP0.3 million
(2021: non-underlying costs of GBP1.3 million) (see note 3 for
adjusting items and note 10 for earnings/(loss) per share).
(3) Net debt to EBITDA has been calculated based on the last
12 months' actual adjusted EBITDA (see notes 4 for adjusted
EBITDA and 15 for net debt).
(4) Net assets per share are the group's net assets divided
by the shares in issue at the period end.
(5) During the financial year, our pubs were fully open for
36 weeks, open with varying degrees of Covid related restrictions
for 14 weeks and closed for two weeks.
PERFORMANCE HIGHLIGHTS
-- Total revenue for the period from continuing operations was
GBP309.0 million, up 251.1% against the prior year.
-- Despite battling against varying levels of restrictions and
Christmas trade being significantly impacted by the Omicron
variant, managed house sales were up 2.9% on the two-year (2020)
comparative.
-- During the year, we invested GBP73.7 million, including
GBP24.7 million in our existing managed estate and GBP36.8 million
adding nine new pubs, including the acquisition of six pubs and
hotels from the Lucky Onion group in February.
-- In June, we completed the sale of 56 tenanted businesses for
GBP53.0 million. Our group strategy is now entirely focused on the
development of well invested, premium managed pubs and hotels in
the south of England.
-- Net debt has reduced by GBP74.9 million to GBP173.8 million
and, with adjusted EBITDA of GBP82.5 million, net debt to EBITDA is
conservative at 2.1 times; Including cash balances this leaves us
with GBP134.0 million of headroom on our committed bank facilities
for future investment.
-- We are pleased to recommend the reintroduction of a final
dividend of 10.26 pence, resulting in a total dividend for the year
of 18.81 pence, this compares to 20.78p in respect of the year to 1
April 2019.
-- Sales since the period end have performed extremely well,
with managed house revenue for the last 13 weeks, against the
pre-pandemic levels of 2019, up 17.0% and for the last 5 weeks
versus a year ago up 38.5%.
Patrick Dardis, Chief Executive of Young's, commented:
"I would like to thank the teams across the business who have
worked so hard to deliver these great results, in another year of
extraordinary circumstances. It has been a huge privilege to lead
the group for the past six years, culminating in a year when
Young's celebrated its 190th birthday. I owe enormous thanks to all
my colleagues for their support, contribution and dedication that
has made Young's the business it is today. "
" We have found ourselves navigating challenges at nearly every
turn, whether it be storms, floods and tube strikes, or the
unwelcome arrival of the Omicron variant which hampered our
Christmas trading. I am delighted to announce a strong set of
results that marks a return to normalised profitability with
unrestricted trading towards the end of the year."
"After a quiet period on the acquisition front last year, we
have made some exciting investments. The most significant of these
was the acquisition of six pub and hotel assets from the Lucky
Onion group in Cheltenham and the Cotswolds in February 2022. These
predominantly freehold premium pubs and hotels perfectly complement
our existing businesses in the area."
"It's been a great start to the new financial year, for the last
13 weeks revenue was up 17.0% versus pre-pandemic levels of 2019
and up 38.5% for the last 5 weeks against 2021. The Easter sunshine
was a real boost, with some record weeks. We are looking forward to
the extended Jubilee weekend where we hope to break more records.
Young's are firmly back in business, with the firepower to deliver
further growth."
"Having announced my intention to step down as Chief Executive
after six years in the role, I am pleased to hand over the reins to
my successor, Simon Dodd and the rest of the executive team, at the
coming AGM in July. Simon was recruited three years ago with
succession planning in mind, his excellent leadership skills,
vision and operational experience will be great assets to
Young's."
For further information, please contact:
Young & Co.'s Brewery, P.L.C. 020 8875 7000
Patrick Dardis, Chief Executive
Mike Owen, Chief Financial Officer
MHP Communications 020 3128 8742 / 8147
Tim Rowntree/Robert Collett-Creedy/Harry
Clarke
PRELIMINARY RESULTS FOR THE 52 WEEKSED 28 maRCH 2022
chief EXECUTIVE'S STATEMENT
With this, my final year as Chief Executive, I am delighted to
announce a strong set of results that reflect a return to
normalised profitability with unrestricted trading. In a period
where our pubs remained closed for the first two weeks, followed by
varying restrictions until 'freedom day' in July, we found
ourselves navigating challenges at nearly every turn. Despite the
storms, floods and tube strikes, or the unwelcome arrival of the
Omicron variant which hampered our Christmas trading, our total
revenue was up by 251.1% to GBP309.0 million (2021: GBP88.0
million), with managed house sales ahead of the two-year
comparative by 2.9%. Total group adjusted operating profit from
continuing operations was GBP51.4 million (2021: adjusted operating
loss from continuing operations of GBP33.2 million), with operating
profit from continuing operations of GBP51.7 million (2021:
operating loss from continuing operations of GBP34.5 million).
GREAT TEAM EFFORT
I would like to thank the teams across the business who have
worked so hard to deliver these great results in another year of
extraordinary circumstances. It has been a huge privilege to lead
the group for the past six years, culminating in a year when
Young's celebrated its 190th birthday. I owe enormous thanks to all
my colleagues for their support, contribution and dedication that
has made Young's the business it is today.
STRONG FINANCIAL POSITION
During the period we were able to move on from measures
introduced to steer us through the covid-19 pandemic. In May 2021,
we began by repaying the GBP30.0 million borrowed under the Bank of
England's Covid Corporate Financing Facility and then didn't need
to extend the GBP20.0 million bilateral revolving credit facility
with NatWest that matured in November. This marked an important
step away from temporary finance support measures.
The sale of most of the tenanted estate to Punch Pubs & Co
for GBP53.0 million was a defining moment in our strategy to focus
on operating predominantly freehold, individual, differentiated and
premium managed pubs and pubs with rooms. The sale left us with
seven tenanted pubs, three of which we have now sold. One of the
remaining pubs, the Grand Junction Arms (Harlesden) now operates as
a managed pub following a major investment. This significant
strategic move gave us cash to further strengthen our balance sheet
and extra capacity both to invest in our existing estate and
capitalise on attractive acquisition opportunities that present
themselves.
KEY ACQUISITIONS IN THE YEAR
After a quiet period on the acquisition front last year, we made
some exciting investments. The most significant of these was the
acquisition of six pub and hotel assets from the Lucky Onion group
in Cheltenham and the Cotswolds during February 2022. These
predominantly freehold premium pubs and hotels perfectly complement
our existing businesses in the area. We also completed on three
other single site acquisitions: the Bull (Ditchling, Sussex),
Pheasant (Lambourn, Berkshire) and White Horse (Hascombe,
Surrey).
INVESTING IN OUR ESTATE AND OUR NEW HEAD OFFICE
With our focus on returning to normalised trade there was a
reluctance to close pubs for major projects. However, maintaining a
premium and well-invested pub estate through continued investment
is fundamental to our success, and we spent GBP30.4 million on our
existing business and new head office. It has been a long-term
strategic opportunity to maximise the potential of certain assets
within our tenanted estate, and two standout examples were at the
Grand Junction Arms (Harlesden) and Ship Inn (East Grinstead)
following their transfer to our managed operation.
In line with our strategic objective to increase further our
freehold mix, we have been busy this year building our new head
office, Copper House, on the same site as the refurbished Spread
Eagle hotel, back in the heart of Wandsworth. It is great to return
to our spiritual home, directly opposite our old brewery site where
the story began in 1831.
OUR ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) STRATEGY
Young's is a company with a long heritage, and we are committed
to building a business which nurtures and develops our people,
respects the environment, and makes a lasting and positive
contribution to the communities we operate in. We recognise that
operating sustainably is fundamental to delivering long-term value
for all our stakeholders and for the future success of Young's.
Within our annual report, we have included our first sustainability
report, detailing the many things we have achieved so far and the
steps we are taking to embrace a more structured approach to
sustainability going forward.
CURRENT TRADING AND OUTLOOK
It's been a great start to the new financial year, for the last
13 weeks revenue was up 17.0% versus pre-pandemic levels of 2019
and up 38.5% for the last 5 weeks against 2021 . Our well invested
gardens were perfectly primed to capitalise on the welcome sunshine
over the Easter bank holiday, with some record takes. We look
forward to the extended Jubilee weekend where we expect to break
even more records.
Young's is well placed to manage the impact of the current
inflationary environment on our cost base, with the ability to flex
our menus, our utilities hedged until March 2024 and having
recently renegotiated a large proportion of our drinks contracts.
However we are mindful of the potential impact that this
inflationary environment could have on consumer sentiment and
ultimately consumer spending.
In April, we launched our exciting new beer range including a
number of first-to-market products demonstrating that Young's
continues to be at the forefront of product innovation. Our
investment programme continues at pace, with the transformational
scheme at the Phoenix in Victoria due to complete later this month.
Also in May, we completed the freehold purchase of the Bedford Arms
hotel in Buckinghamshire, extending the Young's business into
another new territory.
Having announced my intention to step down as Chief Executive
after six years in the role I am pleased to hand over the reins to
my successor, Simon Dodd, and the rest of the executive team, at
the coming AGM in July. Simon was recruited three years ago with
succession planning in mind, his excellent leadership skills,
vision and operational experience will be great assets to Young's.
It's been 20 wonderful years at Young's and I am leaving behind a
fantastic business in a strong financial position ready for the
next chapter. I am confident in Young's proven strategy to deliver
profitable returns for our shareholders.
business and financial review
MANAGED HOUSES
In what has been another extraordinary year, once again we began
the period with the UK economy in a full lockdown due to the
pandemic, and all our pubs closed to the public. It was good to see
all our pubs and beer gardens full again from mid-July, as
restrictions were relaxed, removing limits on social contact and
allowing for larger events. The quintessential pubs' firm place in
the heart of English culture was more important than ever this year
and we were in the perfect position to capitalise as people looked
to make up for lost time. Despite the setback of Omicron
significantly curtailing sales during the Christmas period, trading
was ahead of expectations with total managed house revenue up by
253.7% to GBP307.7 million (2021: GBP87.0 million).
Initially, our focus was firmly on how we could safely welcome
back as many customers as possible when restrictions eased in
April. There was a real feel-good factor for both our customers and
teams, with the pent-up demand evident as bookings for our gardens,
huts and external spaces flooded in ahead of re-opening. The sense
of excitement and anticipation triggered several weeks of frantic
trade, despite restrictions allowing only outdoor trading and the
irony that on day one we were greeted with snowfall. This did not
hold us back as incredible customer support meant total revenue was
just 13% lower than the whole estate in 2019 for the first six
weeks, despite a quarter of our estate remaining closed. It was not
until 17 May, when the restrictions on trading inside were finally
lifted, that our remaining pubs reopened.
With the UK holiday market capitalising on domestic travel, our
pubs and hotels in typical 'staycation' locations exceeded
expectations, although the wet and dull weather through July and
August somewhat curtailed our progress. The warm and sunny weather
in September was welcome, helping us celebrate 190 years of Young's
- an event marked at every Young's pub, from Cambridge to Devon. In
London, our famous dray horses took to the streets for 'The Great
Greenwich Tour', starting at the Richard the First and ending at
one of our newest pubs on the banks of the River Thames, Enderby
House. As the year progressed, we started to see more people return
to the office, at least for part of the week, and for our pubs in
the City of London trade was back to 80% of pre-pandemic levels by
the end of September.
As expectations were building for a bumper December with
encouraging numbers of bookings in the diary, the arrival of
covid-19's fast-spreading Omicron variant saw widespread
cancellations, wasted turkey dinners, and people return to
home-working as they sheltered away to protect their own family
holidays. This continued through to New Year with celebrations more
muted than we would expect to see. The spread of Omicron also
affected our teams as we battled staffing challenges that rivalled
the 'pingdemic' from earlier in the year. What relatively few
bookings we had in the Christmas period had now become harder to
operate as managing rotas across the business became a daily
challenge.
Sales in the final quarter bounced back strongly. The mild
weather in January and February was punctuated once or twice by
severe storms that hit the UK, but these early months of the year
marked the start of events season beginning with Burn's Night where
pubs held unique Scottish themed events. In February, it was the
return of the Six Nations rugby, with Guinness supporting us with
events in almost every pub alongside a number of selective one-off
special events hosted by England rugby legends such as Will
Greenwood and Danny Care.
In March, having completed the acquisition of the pubs and
hotels from the Lucky Onion group just a couple of weeks prior, we
experienced our first Cheltenham Festival racing week. The newly
acquired No. 38 The Park, the last stop before you reach the
racecourse, ensured racegoers didn't go thirsty with a specially
erected outside bar serving premium drinks for the four-day
festival.
There is no doubt that food sales were the big winner in the
period, even if you disregard the benefit received from a reduced
rate of VAT when compared to drink sales. In the early months,
table service was a requirement and customers saw the return to the
pub as a chance to treat themselves to the dining out experience
that had been lacking for most of the last year. Our Young's app
played a pivotal role in the customer journey, accounting for 40%
of food and drinks sales in the early part of our year. While the
app is less important now that normal bar service has resumed, it
still proves a very useful tool, offering customers the ability to
independently browse menus, order food and drink direct to their
table and pay the bill.
The continued investment in our covered and heated gardens
proved vital in winter as well as for the restricted first few
months. Ahead of re-opening we had expanded our Burger Shack
offering - focusing on innovation - updating the menu with the
addition of monthly and seasonal special burgers. These ranged from
a 'Lambslide' for spring to the 'Dirty Vegan' for January in
partnership with Matt Pritchard, a notorious vegan chef. The strong
trend for dining out and meeting up with friends continued
throughout the year as food sales ended the period 20.3% ahead of
two-year prior comparative.
It has been quite a year for the Guinea which celebrated a
position of 7th in Estrella Damm's top 50 Gastro pubs in the UK,
finishing as the highest ranked London pub on the list. A local
Mayfair institution dating back to 1423, we opened our restaurant,
the Guinea Grill, in 1953. The food has grown from a long legacy of
impeccably sourced British steaks and other produce such that it
now often requires a reservation months in advance. Indicating the
importance of seizing opportunities when they present themselves,
this year we were able to increase the trading space, at least in
the short term, doubling our covers whilst maintaining the
all-important true Guinea experience.
For our drinks sales, the initial restrictions on vertical
drinking and the need for people to be sat at a table, limited pub
capacities. Following months of lockdown, customers were keen to
treat themselves, driving further premiumisation across most
categories and we saw significant volume growth compared to two
years prior in our Champagne and sparkling wine, up by 53.9%, and
cocktails up by 85.6%. In the first half of the period t he 'sit
down' environment encouraged the restaurant feel which resulted in
a drop to the mix of draft sales as people traded into wines.
However, following the return to more normalised trading in the
second half, volumes and mix of draught sales bounced back with
Guinness leading the way, its volumes were ahead of the comparative
period by 11.5%. In total, drink sales finished the period 3.7%
behind the two-year prior comparative.
Our success has not been without its challenges. There have been
well documented issues in the supply chain, whilst chef recruitment
remains difficult for the whole of the industry. We have looked to
combat this by offering a comprehensive and unique career pathway
for all skill levels in the kitchen to match the scheme for our
front of house teams. Inspirational chef experiences that offer the
opportunity to learn all there is to know about our local British
seasonal ingredients is just another way that we look to train and
retain our people.
In response to the ongoing challenges with recruitment and
agency costs, this year we launched the Ram Agency which aims to
give employees the power to pick their working hours. This in-house
agency brings together people with the skills we need across the
group, in a range of roles, from chefs to front and back of house
team members. Members of the agency can choose the shifts they want
and create their own working rota to give themselves the
flexibility to achieve their goals. With the aim of filling shifts
with people who know the Young's way of working, and trained to
Young's standards, this will reduce our reliance on agency staff
going forward.
The performance of hotels was largely dependent on their
geography. Our 'staycation' hotels revelled with the regular influx
of domestic visitors as overseas travel remained challenging,
whereas city hotels felt the negative impact of the pandemic more
acutely as business travel and London tourism took longer to
return. This was reflected in the overall hotel stats for the year,
with total occupancy at 56.9% despite a respectable average room
rate of GBP97.61, resulting in a RevPAR of GBP55.50.
It has been a year where we have had to combat varying trading
restrictions alongside the other challenges that we have faced set
against the backdrop of increasing costs. Despite these factors,
and supported by the VAT reduction, our managed house profitability
returned to more normalised levels, with an adjusted operating
profit of GBP72.1 million (2021: adjusted operating loss of GBP18.6
million).
INVESTMENT
Our investment impact in the year goes back to last winter's
lockdown when we were busy actively adding more stretch tents and
huts, ensuring the additional covers in our external spaces were
tradeable all year round. When we came out of lockdown last spring,
we were ready to capitalise on the pent-up demand as trade bounced
back strongly. However, in the interest of ensuring we returned to
profitable trade and conserving cash, we delayed the majority of
our major projects until January 2022.
During the year, we spent GBP24.7 million on our existing estate
including exciting schemes at the King's Head (Winchmore Hill) and
Chequers (Walton-on-the-Hill), both designed to offer a more
premium environment all year round. With beautiful interiors
featuring open fires, wood-paneled dining rooms, traditional snug
areas, bright, elegant garden spaces, and accompanying stunning
gardens these two investments are going to be firm favourites with
their local communities. Elsewhere we have carried out smaller
refurbishments of much-loved pubs across the estate, including the
Castle (Islington), Orange Tree (Richmond), and the Alma
(Wandsworth). We also remain on site at the Phoenix (Victoria)
which will open later this month following an extensive scheme
creating 34 additional covers on a new mezzanine terrace.
In the last couple of years, we have transferred a number of
pubs from our tenanted division, all with their own unique style
and opportunity to managed houses, and this year was no different.
Firstly, the Grand Junction Arms (Harlesden) opened in January
following a complete refurbishment. This sleeping giant features
canal-side huts and seating for more than 500 people in its
three-tiered garden, fully equipped with outside bar and Burger
Shack. Similarly, the Ship Inn (East Grinstead) is home to a new
Burger Shack with 200 covers across a multitude of outside spaces
that include two covered 'boat cabins'. Meanwhile, investment at
the Spread Eagle (Wandsworth) has been ongoing throughout the year,
restoring this previous tenancy to its former glory with
traditional features that include stylish etched glass, heritage
colours and brass fittings whilst adding a modern twist to this
classic Victorian pub with 21 boutique bedrooms. Finally, we have
just completed a light touch update to the Royal Oak (Bethnal
Green) after trading throughout the post-covid period.
On the acquisition front, soon after last period end we
completed the freehold acquisition of the former Greenwich Union
pub next door to our own Richard the First (Greenwich). We then
designed a scheme and obtained the necessary permissions to bring
the two businesses together, later re-opening as a bigger, better
pub just ahead of the Easter weekend. In line with our strategic
objective to add premium freehold pubs, we were also able to
purchase the freehold of existing managed house, the Lamb
(Bloomsbury), which is located between Holborn and Russell Square
tube stations.
During the period we have invested a further GBP36.8 million in
the acquisition of nine new pubs and hotels. In December, we
purchased The Bull (Ditchling) in East Sussex, which dates back to
the 16th century and has six bedrooms. The following month we
acquired the Pheasant Inn, popular with the local racing community
in Lambourn, featuring 14 bedrooms. Then in March purchased the
freehold of the White Horse (Hascombe), an attractive 16th century
village pub sitting in the Surrey Hills Area of Outstanding Natural
Beauty.
The most significant acquisition was made in February when we
purchased six pub and hotel assets from the Lucky Onion group. The
acquisition included three properties in Cheltenham, and three
other Cotswolds pubs thereby expanding our presence in the area,
whilst also adding 73 hotel rooms to the estate. Five out of the
six properties are freehold. Included in the group are No. 38 The
Park, a boutique 13-bedroom hotel set in a Georgian townhouse in
Cheltenham, the George - a 46-bedroom hotel also located in the
Gloucestershire town - and the Wheatsheaf, a 17th century coaching
inn in Northleach, which features 14 premium bedrooms.
Finally, this spring saw the completion of a long-awaited
project; the relocation of our company head office back to the
centre of Wandsworth. Our new base, Copper House, adjoins the
fabulous Spread Eagle hotel and will be instrumental in bringing
our teams back together as we set off on the next phase of our
journey.
The only disposal within the managed house division was the
Waverley (Bognor Regis), where in March, we exited the lease
following the decision not to renew. We finished the period with
219 managed pubs and hotels (2021: 210).
TENANTED BUSINESS
The disposal of 56 of our tenanted pubs in July, for a total
cash consideration of GBP53.0 million to Punch Pubs & Co
cemented our move away from operating a tenanted model. In the
period, we also disposed of the Grove House (Camberwell) and Lord
Wargrave (Marylebone), agreed an early exit from our lease at the
Prince William Henry (Blackfriars) and transferred the Grand
Junction Arms to our managed house division, leaving us with just
three tenancies.
Continuing business revenue was GBP1.0 million (2021: GBP0.7
million) and an adjusted operating profit of GBP0.4 million (2021:
GBP0.0 million). Due to the small nature of the continuing
business, this will be the final period in which we report on the
tenanted division separately.
OTHER KEY AREAS
PROPERTY
Our balance sheet strength is underpinned by our predominantly
freehold estate in many highly desirable locations. 182 of our 222
pubs are freehold or are long leaseholds with peppercorn rents. Our
total estate, including freehold and fixtures and fittings on
leaseholds, is now valued at GBP808.0 million (2021: GBP773.7
million). The carrying value of property leases, including long
leaseholds, is separately recognised as right-of-use assets in note
12. We have continued to add value through major developments to
improve our existing pub values and hand-picked acquisitions,
primarily focussing on freehold assets.
Each year we revalue our pub estate to reflect current market
values. Despite our return to profitable trade, the ongoing
implication of covid-19 on our estate had to be considered on an
individual basis as some pubs continue to build back to
pre-pandemic levels. Savills, an independent and leading commercial
property adviser, has revalued all our freehold properties. The
valuation method used several inputs and the sustainable level of
trade of each pub remained key.
In accordance with International Financial Reporting Standards,
individual increases in value have been reflected in the
revaluation reserve on the balance sheet (except to the extent that
they had previously been revalued downwards) and individual falls
in value below depreciated cost have been accounted for through the
income statement. None of these adjustments have a cash impact.
Continued optimism in the pub property market has remained
throughout the year and has been reflected by increased activity
and property prices; as a result we have seen a net upward
revaluation movement of GBP29.5 million. This is comprised of an
upward movement of GBP28.7 million (2021: GBP9.0 million upward
movement) reflected in the revaluation reserve and an upward
movement of GBP0.8 million (2021: GBP1.8 million upward movement)
recognised as an adjusting item in the income statement.
TREASURY AND GOING CONCERN
At 28 March 2022, the group had cash in bank of GBP34.0 million
and committed borrowing facilities of GBP235.0 million, of which
GBP135.0 million was drawn down. The drawn facilities are all fully
interest rate hedged. In addition to these committed facilities, we
have a GBP10.0 million overdraft with HSBC. Net debt including
lease liabilities was GBP173.8 million.
We have returned to delivering strong positive cash flows. Our
operating cash flow was GBP107.0 million (2021: cash outflow
GBP23.0 million), with our predominantly freehold estate and
premium business back to unrestricted trading. Young's has returned
to being conservatively financed. We have moved away from all
financing measures introduced to steer us through the covid
uncertainty which, combined with the strong positive cash flow,
result in a net debt to adjusted EBITDA of 2.1 times.
Whilst the group's entire pub estate is trading well, it remains
prudent to recognise a degree of uncertainty ahead due to any
potential on-going impact of covid-19 and to acknowledge the impact
of the current cost inflation that could influence future
profitability. As part of the directors' consideration of the
appropriateness of adopting the going concern basis, the group has
modelled several scenarios for the going concern period. The key
judgements applied are the extent of any potential future
disruption to trading as a result of covid-19, and the inflationary
cost pressures that the hospitality industry is currently facing.
The base case model assumes we continue to trade as now, with no
restrictions and a confident market with trade continuing to build
in line with Young's growth strategy. The general reduction in
trade scenario looks at a decline of 20% in sales and 24% in profit
across the period. This aims to capture the return of certain
restrictions such as table service only or a recommendation to work
from home and any potential slowdown in consumer spending
influenced by the current cost of living crisis. The cost inflation
scenario includes an average 15% increase in the food cost base for
the period with no retail price increases. Utility pricing has been
held at the base case rates given the group has forward bought
utilities to March 2024. We have assumed capital expenditure levels
will continue at historical levels and no structural changes to the
business will be needed in any of the scenarios modelled. Further
details are set out in note 1 of the attached financial
statements.
Based on these forecasts and sensitivities, coupled with the
current debt levels and the ongoing debt structure in place, the
board has a reasonable expectation that the group is able to manage
its business risks and to continue in operational existence until
at least 27 June 2023. Accordingly, the board continues to adopt
the going concern basis in preparing the consolidated financial
statements.
RETIREMENT BENEFITS
We have a defined benefit pension scheme which has been closed
to new entrants since 2003. During the year our pension deficit of
GBP6.1 million has moved into a net surplus of GBP12.2 million.
This has been largely driven by a movement in the discount rate
contributing to a GBP21.9 million decrease in liabilities. We have
continued our commitment with another year of special
contributions, totalling GBP1.2 million, and remain fully committed
to ensuring the pension scheme is adequately funded.
ADJUSTING ITEMS
Total adjusting items from continuing operations were in a
credit position of GBP0.3 million in the period, the majority of
which relate to the estate management of our properties. We agreed
an early termination of the lease at the Prince William Henry and
recognised GBP2.2 million profit on disposal. During the period, we
also exited one managed house lease - the Waverley (Bognor Regis),
and sold two tenanted pubs, the Grove House (Camberwell) and the
Lord Wargrave (Marylebone) for a net gain of GBP0.2 million. As
previously mentioned, there was a net upward movement in property
revaluation for the period of GBP0.8 million.
Following the transfer of the Grand Junction Arms (Harlesden) to
our managed house division in September, compensation cost of
GBP0.2 million were agreed to terminate the lease agreement
early.
The most significant cost relates to our acquisition of nine
pubs where purchase costs of GBP2.7 million were incurred relating
to property taxes and associated professional and legal fees.
TAX
A tax charge of GBP17.5 million (2021: GBP6.9 million tax
credit) was recognised for the year. The effective tax rate was
33.7% (2021: negative 15.2%) compared to the statutory rate of
19.0% with the difference primarily driven by the re-measurement of
deferred tax liabilities as a result of the increase in the future
substantively enacted tax rates from 19.0% to 25.0%. Further detail
can be found in note 8.
The group's tax strategy for the accounting period ended 28
March 2022 has been published on the Young's website in accordance
with UK tax law.
SHAREHOLDER RETURNS
Having started life in 1831, Young's is a long-standing
business, and we are determined to maintain our long-term,
sustainable growth story.
Our top-line trading performance has flowed through to strong
profit conversion and cash generation. Our adjusted earnings per
share was at 56.26 pence, compared to an adjusted loss per share of
66.63 pence in the prior period. On an unadjusted basis, the profit
per share increased to 58.83 pence. As a result, we are pleased to
recommend a final dividend of 10.26 pence and, if approved by
shareholders, this will give a total dividend for the year of 18.81
pence (2021: nil).
Patrick Dardis
Chief Executive
18 May 2022
GROUP INCOME STATEMENT
For the 52 weeks ended 28 March 2022
Restated
2022 2021
Notes GBPm GBPm
----------------------------------------------------- ----- ------- --------
Continuing operations
Revenue 5 309.0 88.0
Other income 6 5.0 4.7
Operating costs before adjusting items (262.6) (125.9)
----------------------------------------------------- ----- ------- --------
Adjusted operating profit/(loss) 51.4 (33.2)
Adjusting items 3 0.3 (1.3)
----------------------------------------------------- ----- ------- --------
Operating profit/(loss) 51.7 (34.5)
Finance costs (9.5) (9.8)
Finance charge for pension obligations 13 (0.1) (0.2)
----------------------------------------------------- ----- ------- --------
Profit/(loss) before tax 42.1 (44.5)
Income tax (expense)/credit 8 (17.2) 6.9
----------------------------------------------------- ----- ------- --------
Profit/(loss) for the period from continuing operations 24.9 (37.6)
Profit/(loss) for the period from discontinued
operations(1) 7 9.5 (0.7)
----------------------------------------------------- ----- ------- --------
Profit/(loss) for the period attributable to shareholders
of the parent company 34.4 (38.3)
------------------------------------------------------------ ------- --------
(1) A gain on disposal of GBP9.0 million was recognised and has been
recorded within adjusting items (see note 3).
Pence Pence
----------------------------------- --------- ----------------------- -------
Earnings/(loss) per 12.5p ordinary share
Basic 10 58.83 (68.23)
Diluted 10 58.80 (68.23)
----------------------------------- --------- ----------------------- -------
Earnings/(loss) per 12.5p ordinary share for continuing operations
Basic 10 42.58 (66.98)
Diluted 10 42.56 (66.98)
----------------------------------- --------- ----------------------- -------
Prior period comparatives have been restated for the application
of IFRS 5 to re-present financial information in relation to
discontinued operations (see note 7).
GROUP STATEMENT OF COMPREHENSIVE INCOME
For the 52 weeks ended 28 March 2022
Restated
2022 2021
Notes GBPm GBPm
-------------------------------------------------- ----- ------ --------
Profit/(loss) for the period 34.4 (38.3)
-------------------------------------------------- ----- ------ --------
Other comprehensive income
Items that will not be reclassified subsequently to
profit or loss:
Unrealised gain on revaluation of property 11 28.7 9.0
Remeasurement of retirement benefit schemes 13 17.2 0.9
Tax on above components of other comprehensive
income 8 (25.3) (4.0)
Items that will be reclassified subsequently to profit
or loss:
Net movement of interest rate swaps - cash
flow hedge 5.2 2.5
Tax on fair value movement of interest rate
swaps 8 (1.1) (0.5)
-------------------------------------------------- ----- ------ --------
24.7 7.9
-------------------------------------------------- ----- ------ --------
Total comprehensive income/(loss) attributable
to shareholders of the parent company 59.1 (30.4)
-------------------------------------------------- ----- ------ --------
Total comprehensive income/(loss) attributable
to shareholders of the parent company from
continuing operations 49.6 (30.9)
-------------------------------------------------- ----- ------ --------
Total comprehensive income attributable
to shareholders of the parent company from
discontinued operations(1) 9.5 0.5
-------------------------------------------------- ----- ------ --------
(1) A gain on disposal of GBP9.0 million was recognised and has been
recorded within adjusting items (see note 3).
BALANCE SHEETS
At 28 March 2022
Group Company
---------------- ----------------
2022 2021 2022 2021
Notes GBPm GBPm GBPm GBPm
--------------------------------- ----- ------- ------- ------- -------
Non-current assets
Goodwill 32.5 32.5 31.0 31.0
Property and equipment 11 808.0 773.7 803.5 769.1
Right-of-use assets 12 147.0 158.0 139.4 149.2
Investment in subsidiaries - - 14.3 14.3
Deferred tax assets 4.1 8.6 4.1 8.6
Derivative financial instruments 2.2 - 2.2 -
Retirement benefit schemes 13 14.3 - 14.3 -
--------------------------------- ----- ------- ------- ------- -------
1,008.1 972.8 1,008.8 972.2
--------------------------------- ----- ------- ------- ------- -------
Current assets
Inventories 4.7 2.6 4.7 2.6
Trade and other receivables 8.9 10.4 9.7 11.3
Income tax receivable 6.2 5.8 6.3 6.0
Cash 34.0 4.7 34.0 4.7
--------------------------------- ----- ------- ------- ------- -------
53.8 23.5 54.7 24.6
--------------------------------- ----- ------- ------- ------- -------
Asset held for sale - 1.2 - 1.2
--------------------------------- ----- ------- ------- ------- -------
Total assets 1,061.9 997.5 1,063.5 998.0
--------------------------------- ----- ------- ------- ------- -------
Current liabilities
Borrowings (30.0) (29.8) (30.0) (29.8)
Lease liabilities 14 (4.9) (4.9) (4.1) (4.1)
Derivative financial instruments (0.3) (1.8) (0.3) (1.8)
Trade and other payables (43.7) (15.8) (55.8) (27.5)
--------------------------------- ----- ------- ------- ------- -------
(78.9) (52.3) (90.2) (63.2)
--------------------------------- ----- ------- ------- ------- -------
Non-current liabilities
Borrowings (103.8) (143.4) (103.8) (143.4)
Lease liabilities 14 (69.1) (75.3) (63.6) (69.1)
Derivative financial instruments - (1.4) - (1.4)
Deferred tax liabilities (108.3) (73.6) (108.1) (73.4)
Retirement benefit schemes 13 (2.1) (6.1) (2.1) (6.1)
--------------------------------- ----- ------- ------- ------- -------
(283.3) (299.8) (277.6) (293.4)
--------------------------------- ----- ------- ------- ------- -------
Total liabilities (362.2) (352.1) (367.8) (356.6)
--------------------------------- ----- ------- ------- ------- -------
Net assets 699.7 645.4 695.7 641.4
--------------------------------- ----- ------- ------- ------- -------
Capital and reserves
Share capital 7.3 7.3 7.3 7.3
Share premium 7.7 7.6 7.7 7.6
Capital redemption reserve 1.8 1.8 1.8 1.8
Hedging reserve 1.7 (2.4) 1.7 (2.4)
Revaluation reserve 249.4 253.6 240.2 244.4
Retained earnings 431.8 377.5 437.0 382.7
-------
Total equity 699.7 645.4 695.7 641.4
--------------------------------- ----- ------- ------- ------- -------
STATEMENTS OF CASH FLOW
For the 52 weeks ended 28 March 2022
Group Company
---------------- ---------------
2022 2021 2022 2021
Notes GBPm GBPm GBPm GBPm
----------------------------------------- ------ ------- ------- ------ -------
Operating activities
Net cash generated from operations 15 107.0 (23.0) 106.3 (23.9)
Tax paid (5.1) - (5.1) -
----------------------------------------- ------ ------- ------- ------ -------
Net cash flows from/(used in)
operating activities 101.9 (23.0) 101.2 (23.9)
----------------------------------------- ------ ------- ------- ------ -------
Investing activities
Proceeds from disposal of property
and equipment(1) 59.7 0.4 59.7 0.4
Purchase of property and equipment 11 (36.9) (19.1) (36.9) (19.1)
Business combinations, net of
cash acquired (36.9) - (36.9) -
Net cash used in investing activities (14.1) (18.7) (14.1) (18.7)
----------------------------------------- ------ ------- ------- ------ -------
Financing activities
Interest paid (9.7) (9.8) (9.5) (9.4)
Issued equity, net of transaction
costs 0.1 84.9 0.1 84.9
Equity dividends paid (5.0) - (5.0) -
Payment of principal portion
of lease liabilities (4.1) (4.3) (3.6) (3.8)
Repayment of borrowings(2) (39.8) (115.5) (39.8) (115.5)
Proceeds from borrowings - 90.0 - 90.0
----------------------------------------- ------ ------- ------- ------ -------
Net cash flows (used in)/from financing
activities (58.5) 45.3 (57.8) 46.2
------------------------------------------------- ------- ------- ------ -------
Net increase in cash 29.3 3.6 29.3 3.6
Cash at the beginning of the
period 4.7 1.1 4.7 1.1
----------------------------------------- ------ ------- ------- ------ -------
Cash at the end of the period 34.0 4.7 34.0 4.7
----------------------------------------- ------ ------- ------- ------ -------
(1) GBP53.0 million related to the sale of the Ram Pub Company (see
note 7). The remaining balance related to other disposals of tenanted
sites.
(2) In the current period, the group repaid the GBP30.0 million Covid
Corporate Financing Facility debt (net of GBP0.2 million fees) and the
GBP10.0 million Revolving Credit Facility debt. During the prior period,
repayments of borrowings related to GBP65.5 million of Revolving Credit
Facility debt and GBP50.0 million of syndicated facility with RBS and
Barclays.
GROUP STATEMENT OF CHANGES IN EQUITY
At 28 March 2022
Capital
Share redemption Hedging Revaluation Retained Total
capital(1) reserve reserve reserve earnings equity
Notes GBPm GBPm GBPm GBPm GBPm GBPm
------------------------------------- ---------- ---------- ------- ----------- -------- ------
At 30 March 2020 13.6 1.8 (4.4) 248.4 331.4 590.8
--------------------------------- ---------- ---------- ------- ----------- -------- ------
Total comprehensive income
Loss for the period - - - - (38.3) (38.3)
--------------------------------- ---------- ---------- ------- ----------- -------- ------
Other comprehensive income
Unrealised gain on revaluation
of property 11 - - - 9.0 - 9.0
Remeasurement of retirement
benefit schemes 13 - - - - 0.9 0.9
Net movement of interest rate
swaps - cash flow hedge - - 2.5 - - 2.5
Tax on above components of other
comprehensive income 8 - - (0.5) (3.8) (0.2) (4.5)
--------------------------------- ---------- ---------- ------- ----------- -------- ------
- - 2.0 5.2 0.7 7.9
--------------------------------- ---------- ---------- ------- ----------- -------- ------
Total comprehensive loss - - 2.0 5.2 (37.6) (30.4)
--------------------------------- ---------- ---------- ------- ----------- -------- ------
Transactions with owners recorded directly in equity
Share capital issued(2) 1.3 - - - 83.6 84.9
Share based payments - - - - (0.1) (0.1)
Movement in shares held by The
Ram Brewery Trust II - - - - 0.2 0.2
--------------------------------- ---------- ---------- ------- ----------- -------- ------
1.3 - - - 83.7 85.0
--------------------------------- ---------- ---------- ------- ----------- -------- ------
At 29 March 2021 14.9 1.8 (2.4) 253.6 377.5 645.4
--------------------------------- ---------- ---------- ------- ----------- -------- ------
Total comprehensive income
Profit for the period - - - - 34.4 34.4
--------------------------------- ---------- ---------- ------- ----------- -------- ------
Other comprehensive income
Unrealised gain on revaluation
of property 11 - - - 28.7 - 28.7
Remeasurement of retirement
benefit schemes 13 - - - - 17.2 17.2
Net movement of interest rate
swaps - cash flow hedge - - 5.2 - - 5.2
Tax on above components of other
comprehensive income 8 - - (1.1) (22.8) (2.5) (26.4)
--------------------------------- ---------- ---------- ------- ----------- -------- ------
- - 4.1 5.9 14.7 24.7
--------------------------------- ---------- ---------- ------- ----------- -------- ------
Total comprehensive income - - 4.1 5.9 49.1 59.1
--------------------------------- ---------- ---------- ------- ----------- -------- ------
Transactions with owners recorded directly in equity
Share capital issued 0.1 - - - - 0.1
Dividends paid on equity shares - - - - (5.0) (5.0)
Revaluation reserve realised
on disposal of properties - - - (10.1) 10.1 -
Share based payments - - - - 0.1 0.1
--------------------------------- ---------- ---------- ------- ----------- -------- ------
0.1 - - (10.1) 5.2 (4.8)
--------------------------------- ---------- ---------- ------- ----------- -------- ------
At 28 March 2022 15.0 1.8 1.7 249.4 431.8 699.7
--------------------------------- ---------- ---------- ------- ----------- -------- ------
1 Total share capital comprises the nominal value of the share capital
issued and fully paid of GBP7.3 million (2021: GBP7.3 million) and the
share premium account of GBP7.7 million (2021: GBP7.6 million). Share capital
issued in the period comprises the nominal value of GBPnil million (2021:
GBP1.2 million) and share premium of GBP0.1 million (2021: GBP0.1 million).
2 During the prior period the group raised equity, generating proceeds
of GBP84.8 million, net of transaction costs. A cash box structure was
used in such a way that merger relief was available under Companies Act
2006, section 612, and thus no share premium was recorded. As the redemption
of the cash box entity's preference shares was in the form of cash, the
transaction was treated as qualifying consideration and the premium was
therefore considered to be a realised profit.
NOTES TO THE FINANCIAL STATEMENTS
For the 52 weeks ended 28 March 2022
1. General information
This preliminary announcement was approved by the board on 18
May 2022. The financial statements in it are not the group's
statutory financial statements. The statutory financial statements
for the period ended 29 March 2021 have been delivered to the
Registrar of Companies. The auditor has reported on those financial
statements and on the statutory financial statements for the period
ended 28 March 2022, which are expected to be delivered to the
Registrar of Companies shortly. The report for the 2022 accounts
was (i) unqualified, (ii) did not contain any matter to which the
auditor drew attention by way of emphasis without modifying its
opinion and (iii) did not contain a statement under s.498(2) or (3)
of the Companies Act 2006. EY's report for the accounts of 2021 was
(i) unqualified, (ii) contained a material uncertainty in respect
of going concern to which the auditor drew attention by way of
emphasis without modifying its opinion and (iii) did not contain a
statement under s.498(2) or (3) of the Companies Act 2006.
The current period and prior period relate to the 52 weeks ended
28 March 2022 and the 52 weeks ended 29 March 2021
respectively.
The financial statements are presented in pounds sterling, which
is the functional currency of the parent company, and all values
are rounded to the nearest hundred thousand (GBP0.1 million) except
where otherwise indicated.
This preliminary announcement has been agreed with the company's
auditor for release.
The group and parent company financial statements have been
prepared in accordance with UK adopted international accounting
standards and the requirements of the Companies Act 2006. The
accounting policies used have been consistently applied and are
described in full in the statutory financial statements for the
period ended 28 March 2022. The financial statements will also be
available on the group's website, www.youngs.co.uk .
NEW ACCOUNTING STANDARDS AND ACCOUNTING POLICIES
IFRS 5 - Non-current Assets Held for Sale and Discontinued
Operations
In the current period the group disposed of the majority of pubs
previously traded under the Ram Pub Company as tenanted pubs and
were disclosed separately in the segmental reporting note.
Management has considered the sale and has concluded that the sale
meets the definition of a discontinued operation.
A discontinued operation is a component of the entity that has
been disposed of, or is classified as held for sale, and that
represents a separate major line of business and is part of a
single co-ordinated plan to dispose of such a line of business. The
results of discontinued operations are presented separately in the
income statement.
The sale was completed in one transaction to one buyer and all
related assets and liabilities together met the definition of a
disposal group.
As a result of the above, the financial statements for the
current period prior comparative periods have been restated in
accordance with the standard to re-present discontinued operations
in the income statement and instead display the impact as a
separate income statement line showing the post-tax profit of
discontinued operations. Further detailed analysis of that single
amount into revenue, expenses and cash flows is disclosed in note
7.
Non-current assets are not depreciated or amortised while they
are classified as held for sale. Interest and other expenses
attributable to the liabilities of a disposal group classified as
held for sale continue to be recognised.
The group will no longer be disclosing the segmental reporting
note due to the majority of the Ram Pub Company pubs' disposal.
Amendments to accounting standards
Other amendments to accounting standards applied from 30 March
2021 were as follows:
-- Interest Rate Benchmark Reform - Phase 2 - amendments to IFRS 9, IAS 39 and IFRS 7; and
-- IFRS 16 (amended) - covid-19 related rent concessions beyond 30 June 2021.
The application of these did not have a material impact on the
group's accounting treatment and has therefore not resulted in any
material changes.
Going concern
At 28 March 2022, the group had cash in bank of GBP34.0 million
and committed borrowing facilities of GBP235.0 million, of which
GBP135.0 million was drawn down. The group expects, by 27 June 2023
(the 'going concern' period), to have available facilities of
GBP235.0 million, with the plan to renegotiate the GBP30.0 million
term loan that is due March 2023. In addition to these committed
facilities, we have a GBP10.0 million overdraft with HSBC, which is
not committed, and is therefore not assumed to continue for the
purpose of this assessment.
Aligned to the government's hospitality reopening plan, all the
group's pubs were operating under severe restrictions until 19 July
2021 when all restrictions were finally lifted. The group is very
pleased with trading levels across the year and the quick return to
positive trading cash flow, including through the disrupted Omicron
period. Cash reserves have been further supported during the period
through the sale of the Ram Pub Company for total cash proceeds of
GBP53.0 million.
Whilst the group's entire pub estate is trading well, it remains
prudent to recognise a degree of uncertainty ahead due to any
potential ongoing impact of covid-19 and to acknowledge the impact
of the current cost inflation that could influence future
profitability. The directors also acknowledge the current
Russia/Ukraine situation and the potential indirect impact this
could have on Young's with respect to any further increase in food
and energy inflation, and possible reductions in consumer spending.
At this point in time the directors consider that the sales and
inflation assumptions used in the going concern scenarios are
appropriate.
As part of the directors' consideration of the appropriateness
of adopting the going concern basis, the group has modelled several
scenarios for the going concern period. The key judgements applied
are the extent of any potential future disruption to trading as a
result of covid-19, and the inflationary cost pressures that the
hospitality industry is currently facing. The base case model
assumes we continue to trade as now, no restrictions and a
confident market with trade continuing to build in line with
Young's growth strategy. The general reduction in trade scenario
looks at a decline of 20% in sales and 24% in profit across the
period. This aims to capture the return of possible restrictions
such as table service only, or a recommendation to work from home,
and any potential slowdown in consumer spending influenced by the
current cost of living crisis. The cost inflation scenario includes
an average 15% increase in the food cost base for the period with
no retail price increases, utility pricing has been held at the
base case rates given the group has forward bought utilities to
March 2024. We have assumed capital expenditure levels will
continue at historical levels and no structural changes to the
business will be needed in any of the scenarios modelled.
In the base case; general reduction in trade; and cost inflation
scenarios there continues to be significant headroom on our debt
facilities, and all banking covenants are fully complied with
throughout the going concern period.
The reverse stress test focused on the decline in sales and
profit that Young's would be able to absorb before breaching any
financial covenants or indeed any liquidity issues (the former
being the main stress point given the debt headroom). Such a
scenario, and the sequence of events that could lead to it, such as
full closure of the pub estate for the summer and Christmas
periods, is considered to be remote. There would need to be a sales
reduction of c.50% and profit reduction of c.60% between May 2022
and March 2023 compared to the base case a reduction far in excess
of those experienced historically (with the exception of the
restricted covid-19 period), before there is a breach of financial
covenants in the period and is calculated before reflecting any
mitigating actions such as reduced capital expenditure or
suspension of dividends.
Young's has also considered the impact of climate change on
going concern and has determined that there is no impact on the
business during the going concern period. Aligned with our
developing ESG strategy this will continue to feature in future
assessments, as we determine the potential wider impact on our
asset base, capex spend and cost of compliance.
Based on these forecasts and sensitivities, coupled with the
current debt levels and the ongoing debt structure in place, the
board has a reasonable expectation that the group is able to manage
its business risks and to continue in operational existence until
at least 27 June 2023. Accordingly, the board continues to adopt
the going concern basis in preparing the consolidated financial
statements.
2. Segmental reporting
The group is organised into the reporting segments referred to
below. These segments are based on the different resources and
risks involved in the running of the group. The executive board of
the group internally reviews each reporting segment's operating
profit or loss before adjusting items for the purpose of deciding
on the allocation of resources and assessing performance.
The group historically has two operating segments: managed
houses and tenanted houses. The managed house segment operates
pubs. Revenue is derived from sales of drink, food and
accommodation. The tenanted house segment consists of pubs owned or
leased by the company and leased or subleased to third parties.
Revenue is derived from rents payable by, and sales of drink made
to, tenants. Unallocated relates to head office income and costs
and unlicensed properties. During the period, most of the pubs
within the tenanted house segment have been disposed of and
classified as a discontinued operation. Segmental reporting is in
respect of continuing operations only. For discontinued operations
see note 7.
Total segment revenue is derived externally with no intersegment
revenues between the segments in either period. The group's revenue
is derived entirely from the UK.
Income statement Managed Tenanted Segments Unallocated Total
houses houses total
2022 GBPm GBPm GBPm GBPm GBPm
------------------------------------------ ------- -------- -------- ----------- ------
Sales of goods 295.4 0.5 295.9 - 295.9
Accommodation sales 12.3 - 12.3 - 12.3
------------------------------------------ ------- -------- -------- ----------- ------
Total revenue from contracts with
customers 307.7 0.5 308.2 - 308.2
from continuing operations
Rental income - 0.5 0.5 0.3 0.8
------------------------------------------ ------- -------- -------- ----------- ------
Total revenue recognised from continuing
operations 307.7 1.0 308.7 0.3 309.0
------------------------------------------ ------- -------- -------- ----------- ------
Adjusted operating profit/(loss)
from continuing operations 72.1 0.4 72.5 (21.1) 51.4
Adjusting items (0.4) 2.2 1.8 (1.5) 0.3
------------------------------------------ ------- -------- -------- ----------- ------
Operating profit/(loss) from continuing
operations 71.7 2.6 74.3 (22.6) 51.7
------------------------------------------ ------- -------- -------- ----------- ------
Restated 2021
------------------------------------------ ------- -------- -------- ----------- ------
Sales of goods 84.5 0.3 84.8 - 84.8
Accommodation sales 2.5 - 2.5 - 2.5
------------------------------------------ ------- -------- -------- ----------- ------
Total revenue from contracts with
customers 87.0 0.3 87.3 - 87.3
from continuing operations
Rental income - 0.4 0.4 0.3 0.7
------------------------------------------ ------- -------- -------- ----------- ------
Total revenue recognised from continuing
operations 87.0 0.7 87.7 0.3 88.0
------------------------------------------ ------- -------- -------- ----------- ------
Adjusted operating loss from continuing
operations (18.6) - (18.6) (14.6) (33.2)
Adjusting items (0.6) (0.2) (0.8) (0.5) (1.3)
------------------------------------------ ------- -------- -------- ----------- ------
Operating loss from continuing operations (19.2) (0.2) (19.4) (15.1) (34.5)
------------------------------------------ ------- -------- -------- ----------- ------
3. Adjusting items
The table below shows adjusting items from continuing operations. For
discontinued operations see note 7.
During the period the cash flow impact of adjusting items was GBP3.8
million (2021: GBP2.0 million).
2022 2021
GBPm GBPm
----------------------------------------------------------- ------ -----
Amounts included in operating profit:
Upward movement on the revaluation of properties
(note 11)(1) 5.5 2.9
Downward movement on the revaluation of properties
(note 11)(1) (4.7) (1.3)
Purchase costs(2) (2.7) -
Net profit/(loss) on disposal of properties(3) 2.4 (0.5)
Tenant compensation(4) (0.2) (0.5)
Group reorganisation(5) - (1.4)
Covid restructuring(6) - (0.5)
----------------------------------------------------------- ------ -----
0.3 (1.3)
----------------------------------------------------------- ------ -----
Tax on adjusting items:
----------------------------------------------------------- ------ -----
Tax attributable to adjusting items (0.6) 0.2
Impact of change in corporation tax rate(7) (6.9) -
----------------------------------------------------------- ------ -----
(7.5) 0.2
----------------------------------------------------------- ------ -----
Total adjusting items after tax (7.2) (1.1)
----------------------------------------------------------- ------ -----
1 The movement on the revaluation of properties is a non-cash
item that relates to the revaluation exercise that was completed at
the period end date. The revaluation was conducted at an individual
pub level and identified an upward movement of GBP5.5 million
(2021: GBP2.9 million) representing reversals of previous
impairments recognised in the income statement, and a downward
movement of GBP4.7 million (2021: GBP1.3 million), representing
downward movements in excess of amounts recognised in equity. These
resulted in a net upward movement of GBP0.8 million (2021: an
upward movement of GBP1.6 million) which has been recognised in the
income statement. The upward movement for the period ended 28 March
2022 was split between land and buildings of GBP0.8 million (2021:
GBP1.6 million upward) and fixtures and fittings of GBPnil (2021:
GBPnil). See note 11 for information on the revaluation of
properties.
2 Costs related to the purchase of the Bull (Ditchling),
Pheasant Inn (Lambourn), the White Horse (Hascombe), the freehold
of the Lamb (Bloomsbury) and the Lucky Onion group, a group of six
sites acquired on 21 February 2022. This also included lease
extensions of Cherry Tree (Dulwich), East Hill (Wandsworth) and
Riverside House (Wandsworth). These included legal and professional
fees and stamp duty land tax (note 8).
3 The profit on disposal of properties related to the difference
between cash, less disposal costs, received from the sale of the
Grove House (Camberwell) and Lord Wargrave (Marylebone) and the
carrying value of their assets, including goodwill, at the dates of
disposal, and the surrender premium related to the lease of Prince
William Henry (Southwark). In the prior period, the carrying value
of the Grove House was previously derecognised from property and
equipment and instead classified as an asset held for sale.
Proceeds of GBP1.2 million were recognised in respect of the sale
of the Grove House in the current period. During the prior period
the loss on disposal of properties related to the difference
between cash, less disposal costs, received from the sale of the
Horse Pond Inn (Castle Cary), the lease expiry of the Black Cat
(Catford), the Surprise (Chelsea) and the Greyhound (Hendon) and
the carrying value of their assets, including goodwill, at the
dates of disposal.
4 Tenant compensation of GBP0.2 million was paid to previous
tenants of the Grand Junction Arms (Harlesden) to terminate their
lease agreement early. During the prior period, tenant compensation
of GBP0.5 million was paid to previous tenants of the Royal Oak
(Bethnal Green) and an unlicensed property (Wandsworth) to
terminate their lease agreements early.
5 During the prior period the group reorganisation costs of
GBP1.4 million related to the stamp duty land tax and associated
legal and professional fees incurred on the transfer of the
business and assets of Spring Pub Company Limited, a group of five
sites acquired on 12 March 2020, to Young's. The cost was foreseen
at the time of the acquisition in March 2020, but did not
crystalise until the transfer happened in September 2020.
6 During the prior period covid restructuring costs of GBP0.5
million related to a reorganisation of the group's head office
functions. These were largely made up of severance costs.
7 An increase in the corporation tax rate from 19% to 25%, with
effect from 1 April 2023, was announced in the March 2021 Budget,
and substantively enacted on 24 May 2021. This has resulted in an
increase in the deferred tax liabilities and assets of the group,
to the extent they are not expected to reverse prior to 1 April
2023, with a net charge of GBP6.9 million associated with the rate
change. This has been recognised as an exceptional item in the tax
charge for the period as it is unrelated to the underlying trading
activities of the group.
4. Other financial measures
The table below shows how adjusted group EBITDA, operating
profit and profit before tax have been arrived at. They exclude
adjusting items which due to their material or non-recurring nature
distort the group's performance. These alternative performance
measures have been provided to help investors assess the group's
underlying performance. Details of the adjusting items can be seen
in note 3.
All the results below are from continuing operations.
2022 Restated 2021
------------------------------- -------------------------------
Adjusting Adjusting
Unadjusted items Adjusted Unadjusted items Adjusted
GBPm GBPm GBPm GBPm GBPm GBPm
------------------------------ ---------- --------- -------- ---------- --------- --------
EBITDA 82.0 0.5 82.5 (4.2) 2.9 (1.3)
Depreciation and net movement
on the revaluation of
properties (30.3) (0.8) (31.1) (30.3) (1.6) (31.9)
------------------------------ ---------- --------- -------- ---------- --------- --------
Operating profit/(loss) 51.7 (0.3) 51.4 (34.5) 1.3 (33.2)
Net finance costs (9.5) - (9.5) (9.8) - (9.8)
Finance charge for pension
obligations (0.1) - (0.1) (0.2) - (0.2)
------------------------------ ---------- --------- -------- ---------- --------- --------
Profit/(loss) before
tax 42.1 (0.3) 41.8 (44.5) 1.3 (43.2)
------------------------------ ---------- --------- -------- ---------- --------- --------
5. Revenue
The recognition of revenue from continuing operations under each of the
group's material revenue streams is
as follows:
Restated
2022 2021
GBPm GBPm
-------------------------------------------------------- ------ ----------
Sales of goods 295.9 84.9
Accommodation sales 12.3 2.5
-------------------------------------------------------- ------ ----------
Total revenue from contracts with customers 308.2 87.4
Rental income 0.8 0.6
-------------------------------------------------------- ------ ----------
Total revenue recognised 309.0 88.0
-------------------------------------------------------- ------ ----------
6. Government grants and assistance
During the period, the group was eligible for a number of government grant
schemes which were introduced to mitigate the impact of covid-19. The impact
of each scheme on the income statement for the period ended 28 March 2022
was as follows:
Income statement 2022 2021
Government grant scheme line impacted GBPm GBPm
-------------------------------------- ----------------------------------- ---- ----
Eat Out to Help Out Revenue - 2.4
Government grant income Other income 5.0 4.7
Coronavirus Job Retention Scheme Operating costs before adjusting
('CJRS') items 2.6 43.3
Covid Corporate Financing Facility
('CCFF') Finance costs - 0.1
-------------------------------------- ----------------------------------- ---- ----
Total government grants received 7.6 50.5
--------------------------------------------------------------------------- ---- ----
All government grants received were in respect of continuing operations.
At 29 March 2021, GBP29.8 million was recognised within current borrowings
in the balance sheet representing the fair value of the Covid Corporate
Financing Facility, with a further GBP0.2 million recognised within trade
and other payables as deferred income, representing the favourable conditions
granted by the Government. The CCFF was repaid in full in May 2021.
In respect of the Coronavirus Job Retention Scheme, GBPnil remained outstanding
at 28 March 2022 (2021: GBP4.6 million). In respect of government grant
income, GBP0.1 million remained outstanding at 28 March 2022 (2021: GBP1.3
million). Both these amounts have been recognised within trade and other
receivables.
In addition, during the period, the group continued to take advantage of
the business rate holiday, saving GBP3.7 million (2021: GBP15.6 million),
further business rate relief under the expanded retail discount, saving
GBP2.0 million (2021: GBP0.7 million) and reduced 5% VAT on eligible sales
until 30 September 2021, followed by 12.5% VAT up until the year end date
of 28 March 2022. The reduced rate subsequently ended on the 31 March 2022.
7. Discontinued operations
On 2 July 2021, the board made the decision to sell most of its
tenanted estate, the Ram Pub Company. At this date, 56 of the 63
pubs in Ram Pub Company were classified as a disposal group held
for sale and as a discontinued operation. On 9 August 2021, the
sites were disposed of for a total consideration of GBP53.0
million. The sale was consistent with the group's strategy to
increase value for shareholders through focussing solely on
operating premium, individual, differentiated and predominantly
freehold managed pubs and hotels.
Total revenue generated from the Ram Pub Company in the period
was GBP3.6 million, of which GBP1.0 million related to continuing
operations and the remaining GBP2.6 million related to discontinued
operations. The results from discontinued operations for the period
are presented below:
2022 2021
GBPm GBPm
----------------------------------------------------------------- ------ ------
Revenue from sales of goods 2.1 2.0
Rental income 0.5 0.6
----------------------------------------------------------------- ------ ------
Total revenue 2.6 2.6
Operating costs (1.8) (3.5)
----------------------------------------------------------------- ------ ------
Adjusted operating profit/(loss) 0.8 (0.9)
Adjusting items(1) 9.0 0.2
Profit/(loss) before tax from discontinued operations 9.8 (0.7)
Income tax expense (0.3) -
----------------------------------------------------------------- ------ ------
Profit/(loss) after tax from discontinued operations 9.5 (0.7)
----------------------------------------------------------------- ------ ------
(1) Adjusting items related to the difference between cash less disposal
costs received from the sale of the 56 sites and the carrying value of
their assets, at the date of disposal. During the previous 52 week period
to 29 March 2021, the adjusting items related to the net upward movement
on the revaluation of properties in excess of amounts recognised in equity.
See note 3.
The major class of asset disposed of as part of the discontinued operation
was property and equipment with a fair value of GBP43.4 million. Deferred
tax liabilities of GBP1.5 million were also de-recognised. No other assets
or liabilities were disposed of as part of the disposal group. A realised
property gain in the revaluation reserve of GBP8.9 million was transferred
to retained earnings on disposal.
The net cash flows incurred in respect of the discontinued
operations were as follows:
2022 2021
GBPm GBPm
----------------------------------------------------------------- ------ ------
Operating 0.1 (5.0)
Investing 52.5 (0.7)
Financing (0.1) (0.2)
----------------------------------------------------------------- ------ ------
Net cash inflow/(outflow) 52.5 (5.9)
----------------------------------------------------------------- ------ ------
For basic, diluted and the effect of adjusting items on earnings/(loss)
per share on discontinued operations see note 10(d).
For tax charged on discontinued operations see note
8.
8. Taxation
The major components of income tax expense/(credit) for the
periods ended 28 March 2022 and 29 March 2021 are:
2022 2021
Tax charged/(credited) in the group income statement GBPm GBPm
------------------------------------------------------------------ ------ -----
Current income tax
Current tax expense/(credit) 4.8 (5.8)
Adjustment in respect of current income tax of prior
periods (0.1) -
------------------------------------------------------------------ ------ -----
4.7 (5.8)
------------------------------------------------------------------ ------ -----
Deferred tax
Relating to origin and reversal of temporary differences 6.7 (1.6)
Adjustment in respect of deferred tax of prior periods (0.8) 0.5
Change in corporation tax rate 6.9 -
------------------------------------------------------------------ ------ -----
12.8 (1.1)
------------------------------------------------------------------ ------ -----
Income tax charged/(credited) in the income statement(1) 17.5 (6.9)
------------------------------------------------------------------ ------ -----
(1) During the period, income tax charged related to GBP17.2 million
from continuing operations and GBP0.3 million from discontinued operations.
2022 2021
Deferred tax in the group income statement GBPm GBPm
------------------------------------------------------------------ ------ -----
Property revaluation and disposals 2.3 (0.1)
Capital allowances 2.4 (0.2)
Retirement benefit schemes 0.2 0.2
Trade losses 1.0 (1.0)
Change in corporation tax rate 6.9 -
------------------------------------------------------------------ ------ -----
Deferred tax charged/(credited) in the income statement 12.8 (1.1)
------------------------------------------------------------------ ------ -----
Deferred tax in the group statement of other comprehensive income
---------------------------------------------------------------------------------
Property revaluation and disposals 4.8 3.8
Retirement benefit schemes 3.3 0.2
Interest rate swaps - cash flow hedge 1.0 0.5
Change in corporation tax rate 17.3 -
------------------------------------------------------------------ ------ -----
Deferred tax charged to other comprehensive income 26.4 4.5
------------------------------------------------------------------ ------ -----
The table below shows the tax credit from discontinued operations.
2022 2021
Tax credited in the group income statement GBPm GBPm
---------------------------------------------------------- ------ ----
Deferred tax
Rolled over gains on disposal of properties (1.8) -
Reversal of temporary differences on revaluations 1.5 -
---------------------------------------------------------- ------ ----
Tax credited in the income statement (0.3) -
---------------------------------------------------------- ------ ----
9. Dividends on equity shares
2022 2021 2022 2021
Pence per Pence per share GBPm GBPm
share
--------------------------------- --------- --------------- ---- ----
Final dividend (previous period) - - - -
Interim dividend (current
period) 8.55 - 5.0 -
--------------------------------- --------- --------------- ---- ----
8.55 - 5.0 -
--------------------------------- --------- --------------- ---- ----
The table above sets out dividends paid. In addition, the board
is proposing a final dividend in respect of the period ended 28
March 2022 of 10.26 pence per share at a cost of GBP6.0 million. If
approved, it is expected to be paid on 7 July 2022 to shareholders
who are on the register of members at the close of business on 10
June 2022.
10. Earnings/(loss) per ordinary share
(a) Weighted average number of shares 2022 2021
Number Number
--------------------------------------------------------- ---------- ----------
Basic weighted average number of ordinary shares
in issue 58,476,259 56,132,368
Dilutive potential ordinary shares from outstanding
employee share options 30,877 -
--------------------------------------------------------- ---------- ----------
Diluted weighted average number of shares 58,507,136 56,132,368
--------------------------------------------------------- ---------- ----------
(b) Earnings/(loss) attributable to the shareholders
of the parent company
GBPm GBPm
--------------------------------------------------------- ---------- ----------
Profit/(loss) for the period 34.4 (38.3)
Adjusting items (9.3) 1.1
Tax attributable to above adjustments 7.8 (0.2)
Adjusted earnings/(loss) after tax 32.9 (37.4)
--------------------------------------------------------- ---------- ----------
Basic earnings/(loss) per share
Pence Pence
--------------------------------------------------------- ---------- ----------
Basic 58.83 (68.23)
Effect of adjusting items (2.57) 1.60
--------------------------------------------------------- ---------- ----------
Adjusted basic earnings/(loss) per share 56.26 (66.63)
--------------------------------------------------------- ---------- ----------
Diluted earnings/(loss) per share
Pence Pence
--------------------------------------------------------- ---------- ----------
Diluted 58.80 (68.23)
Effect of adjusting items (2.57) 1.60
--------------------------------------------------------- ---------- ----------
Adjusted diluted earnings/(loss) per share 56.23 (66.63)
--------------------------------------------------------- ---------- ----------
(c) Earnings/(loss) from continuing operations
GBPm GBPm
--------------------------------------------------------- ---------- ----------
Profit/(loss) for the period 24.9 (37.6)
Adjusting items (0.3) 1.3
Tax attributable to above adjustments 7.5 (0.2)
Adjusted earnings/(loss) after tax 32.1 (36.5)
--------------------------------------------------------- ---------- ----------
Basic earnings/(loss) per share
Pence Pence
--------------------------------------------------------- ---------- ----------
Basic 42.58 (66.98)
Effect of adjusting items 12.31 1.96
--------------------------------------------------------- ---------- ----------
Adjusted basic earnings/(loss) per share 54.89 (65.02)
--------------------------------------------------------- ---------- ----------
Diluted earnings/(loss) per share
Pence Pence
--------------------------------------------------------- ---------- ----------
Diluted 42.56 (66.98)
Effect of adjusting items 12.31 1.96
--------------------------------------------------------- ---------- ----------
Adjusted diluted earnings/(loss) per share 54.87 (65.02)
--------------------------------------------------------- ---------- ----------
(d) Earnings/(loss) per ordinary share for discontinued operations
GBPm GBPm
--------------------------------------------------------- ---------- ----------
Profit/(loss) for the period 9.5 (0.7)
Adjusting items (9.0) (0.2)
Tax attributable to above adjustments 0.3 -
Adjusted earnings/(loss) after tax 0.8 (0.9)
--------------------------------------------------------- ---------- ----------
Basic earnings/(loss) per share
Pence Pence
--------------------------------------------------------- ---------- ----------
Basic 16.25 (1.25)
Effect of adjusting items (14.88) (0.36)
--------------------------------------------------------- ---------- ----------
Adjusted basic earnings/(loss) per share 1.37 (1.61)
--------------------------------------------------------- ---------- ----------
Diluted earnings/(loss) per share
Pence Pence
--------------------------------------------------------- ---------- ----------
Diluted 16.24 (1.25)
Effect of adjusting items (14.88) (0.36)
--------------------------------------------------------- ---------- ----------
Adjusted diluted earnings/(loss) per share 1.36 (1.61)
--------------------------------------------------------- ---------- ----------
The basic earnings/(loss) per share figure is calculated by
dividing the net profit/(loss) for the period attributable to
equity shareholders of the parent by the weighted average number of
ordinary shares in issue during the period.
Diluted earnings per share have been calculated on a similar
basis taking into account 30,877 dilutive potential shares under
the SAYE scheme. During the prior period, there were 61 potential
dilutive shares, which were not included in the calculation of
diluted earnings per share, as they were antidilutive in the period
due to the group being loss making.
Adjusted earnings per share are presented to eliminate the
effect of the adjusting items and the tax attributable to those
items on basic and diluted earnings per share.
11. Property and equipment
Group Company
---------------------------- ----------------------------
Fixtures, Fixtures,
fittings fittings
Land & & Land & &
buildings equipment Total buildings equipment Total
Cost or valuation GBPm GBPm GBPm GBPm GBPm GBPm
----------------------------------- --------- --------- ------ --------- --------- ------
At 30 March 2020 714.1 160.7 874.8 698.8 154.5 853.3
Additions 3.9 15.2 19.1 3.9 15.2 19.1
Transfers from subsidiary
companies - - - 14.7 0.1 14.8
Disposals - (0.2) (0.2) - (0.2) (0.2)
Transfer out to asset held
for sale (0.9) (0.4) (1.3) (0.9) (0.4) (1.3)
Fully depreciated assets (7.7) (19.1) (26.8) (7.4) (19.1) (26.5)
Revaluation(1)
- upward movement in valuation 14.5 - 14.5 14.5 - 14.5
- downward movement in valuation (6.0) - (6.0) (6.0) - (6.0)
----------------------------------- --------- --------- ------ --------- --------- ------
At 29 March 2021 717.9 156.2 874.1 717.6 150.1 867.7
Additions 11.5 25.4 36.9 11.5 25.3 36.8
Business combinations 35.3 1.5 36.8 35.3 1.5 36.8
Disposals(2) (44.2) (10.8) (55.0) (44.2) (10.8) (55.0)
Fully depreciated assets (0.5) (18.3) (18.8) (0.5) (18.2) (18.7)
Revaluation(1)
- upward movement in valuation 40.3 - 40.3 40.3 - 40.3
- downward movement in valuation (10.7) - (10.7) (10.7) - (10.7)
----------------------------------- --------- --------- ------ --------- --------- ------
At 28 March 2022 749.6 154.0 903.6 749.3 147.9 897.2
----------------------------------- --------- --------- ------ --------- --------- ------
Depreciation and impairment
----------------------------------- --------- --------- ------ --------- --------- ------
At 30 March 2020 32.0 71.7 103.7 31.3 70.5 101.8
Depreciation charge 1.7 24.4 26.1 1.6 24.3 25.9
Disposals - (0.2) (0.2) - (0.2) (0.2)
Transfer out to asset held
for sale - (0.1) (0.1) - (0.1) (0.1)
Fully depreciated assets (7.7) (19.1) (26.8) (7.4) (19.1) (26.5)
Revaluation(1)
- upward movement in valuation (3.9) - (3.9) (3.9) - (3.9)
- downward movement in valuation 1.6 - 1.6 1.6 - 1.6
----------------------------------- --------- --------- ------ --------- --------- ------
At 29 March 2021 23.7 76.7 100.4 23.2 75.4 98.6
Depreciation charge 1.6 22.8 24.4 1.5 22.7 24.2
Disposals(2) (5.2) (5.3) (10.5) (5.2) (5.3) (10.5)
Fully depreciated assets (0.5) (18.3) (18.8) (0.5) (18.2) (18.7)
Revaluation(1) -
- upward movement in valuation (4.6) - (4.6) (4.6) - (4.6)
- downward movement in valuation 4.7 - 4.7 4.7 - 4.7
----------------------------------- --------- --------- ------ --------- --------- ------
At 28 March 2022 19.7 75.9 95.6 19.1 74.6 93.7
----------------------------------- --------- --------- ------ --------- --------- ------
Net book value
At 30 March 2020 682.1 89.0 771.1 667.5 84.0 751.5
----------------------------------- --------- --------- ------ --------- --------- ------
At 29 March 2021 694.2 79.5 773.7 694.4 74.7 769.1
----------------------------------- --------- --------- ------ --------- --------- ------
At 28 March 2022 729.9 78.1 808.0 730.2 73.3 803.5
----------------------------------- --------- --------- ------ --------- --------- ------
(1) The group's net book value uplift during the period was
GBP29.5 million (2021: GBP10.8 million). This uplift was recognised
either in the revaluation reserve or the income statement, as
appropriate.
(2) During the period, the majority of the disposals related to
the sale of 56 tenanted pubs (see note 7).
The impact of the property revaluation exercise was as
follows:
Group Company
--------------------------------------- ------------- -------------
2022 2021 2022 2021
GBPm GBPm GBPm GBPm
--------------------------------------- ------ ----- ------ -----
Income statement
Revaluation loss charged as impairment (4.7) (1.6) (4.7) (1.6)
Reversal of past impairment 5.5 3.4 5.5 3.4
--------------------------------------- ------ ----- ------ -----
Net uplift recognised
in the income statement 0.8 1.8 0.8 1.8
--------------------------------------- ------ ----- ------ -----
Revaluation reserve
Unrealised revaluation surplus 39.5 15.0 39.5 15.0
Reversal of past surplus (10.8) (6.0) (10.8) (6.0)
--------------------------------------- ------ ----- ------ -----
Net uplift recognised
in the revaluation reserve 28.7 9.0 28.7 9.0
--------------------------------------- ------ ----- ------ -----
Net revaluation increase
in property 29.5 10.8 29.5 10.8
--------------------------------------- ------ ----- ------ -----
12. Right-of-use assets
Set out below are the carrying amounts of right-of-use assets
recognised and the movements during the period:
Group Company
--------------------------------- ---------------------------------
Property Motor Other Total Property Motor Other Total
vehicles assets vehicles assets
GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
----------------- -------- -------- ------ ----- -------- -------- ------ -----
As at 30 March
2020 163.0 0.3 0.1 163.4 136.5 0.3 0.1 136.9
----------------- -------- -------- ------ ----- -------- -------- ------ -----
Additions 2.1 0.1 - 2.2 18.3 0.1 - 18.4
Lease amendments 0.1 - (0.1) - 0.3 - (0.1) 0.2
Depreciation (7.4) (0.2) - (7.6) (6.2) (0.1) - (6.3)
----------------- -------- -------- ------ ----- -------- -------- ------ -----
As at 29 March
2021 157.8 0.2 - 158.0 148.9 0.3 - 149.2
----------------- -------- -------- ------ ----- -------- -------- ------ -----
Additions 1.0 0.2 - 1.2 1.0 0.2 - 1.2
Lease amendments 0.1 - - 0.1 0.3 - - 0.3
Depreciation (6.9) (0.2) - (7.1) (6.0) (0.1) - (6.1)
Disposals (5.2) - - (5.2) (5.2) - - (5.2)
----------------- -------- -------- ------ ----- -------- -------- ------ -----
As at 28 March
2022 146.8 0.2 - 147.0 139.0 0.4 - 139.4
----------------- -------- -------- ------ ----- -------- -------- ------ -----
13. Retirement benefit schemes
Movement within the schemes in
the period
(a) Changes in the present value of the schemes are as follows:
Group and company
--------------------------------------------------------
2022 2021
Health Health
Pension care Pension care
scheme scheme Total scheme scheme Total
GBPm GBPm GBPm GBPm GBPm GBPm
---------------------------------------------- ----------------- ------ ----- ------- ------ -----
Opening deficit (2.2) (3.9) (6.1) (4.6) (3.6) (8.2)
Current service cost (0.4) - (0.4) (0.2) - (0.2)
Contributions 1.4 0.2 1.6 1.4 0.2 1.6
Other finance charges - (0.1) (0.1) (0.1) (0.1) (0.2)
Remeasurement through other
comprehensive income 15.5 1.7 17.2 1.3 (0.4) 0.9
Closing surplus/(deficit) 14.3 (2.1) 12.2 (2.2) (3.9) (6.1)
---------------------------------------------- ----------------- ------ ----- ------- ------ -----
14. Lease liabilities
Set out below are the carrying amounts of lease liabilities and
the movements during the period:
Group Company
GBPm GBPm
----------------------- ----- -------
As at 30 March 2020 82.3 64.6
----------------------- ----- -------
Additions 2.2 12.2
Lease amendments - 0.2
Accretions of interest 2.6 2.3
Payments (6.9) (6.1)
----------------------- ----- -------
80.2 73.2
----------------------- ----- -------
Current 4.9 4.1
Non-current 75.3 69.1
----------------------- ----- -------
As at 29 March 2021 80.2 73.2
----------------------- ----- -------
Additions 1.2 1.2
Lease amendments 0.1 0.3
Accretions of interest 2.5 2.3
Payments (6.6) (5.9)
Lease Disposals (3.4) (3.4)
----------------------- ----- -------
As at 28 March 2022 74.0 67.7
----------------------- ----- -------
Current 4.9 4.1
Non-current 69.1 63.6
----------------------- ----- -------
15. Net cash generated from operations and analysis of net
debt
Group Company
-------------- --------------
Restated Restated
2022 2021 2022 2021
GBPm GBPm GBPm GBPm
------------------------------------------- ------ ------ ------ ------
Profit/(loss) before tax from continuing
operations 42.1 (44.5) 42.0 (44.4)
Profit/(loss) before tax from discontinued
operations 9.8 (0.7) 9.8 (0.7)
------------------------------------------- ------ ------ ------ ------
Profit/(loss) before tax 51.9 (45.2) 51.8 (45.1)
Net finance cost 9.5 9.9 9.6 9.5
Finance charge for pension obligations 0.1 0.2 0.1 0.2
------------------------------------------- ------ ------ ------ ------
Operating profit/(loss) 61.5 (35.1) 61.5 (35.4)
Depreciation of property and equipment 24.4 26.1 24.2 25.9
Depreciation of right-of-use assets 7.1 7.6 6.1 6.3
Movement on revaluation of properties (0.8) (1.8) (0.8) (1.8)
Net (profit)/loss on disposal of property (11.4) 0.5 (11.4) 0.5
Difference between pension service cost
and cash contributions paid (1.2) (1.4) (1.2) (1.4)
Share based payments (0.1) (0.1) (0.1) (0.1)
Movements in working capital
- Inventories (2.0) 0.7 (2.0) 0.6
- Receivables 1.5 (1.2) 1.6 (1.5)
- Payables 28.0 (18.3) 28.4 (17.0)
------------------------------------------- ------ ------ ------ ------
Net cash generated from operations 107.0 (23.0) 106.3 (23.9)
------------------------------------------- ------ ------ ------ ------
Analysis of net debt
Group Company
---------------- ----------------
2022 2021 2022 2021
GBPm GBPm GBPm GBPm
---------------------------- ------- ------- ------- -------
Cash 34.0 4.7 34.0 4.7
Current borrowings and loan
capital (30.0) (29.8) (30.0) (29.8)
Current lease liability (4.9) (4.9) (4.1) (4.1)
Non-current borrowings and
loan capital (103.8) (143.4) (103.8) (143.4)
Non-current lease liability (69.1) (75.3) (63.6) (69.1)
---------------------------- ------- ------- ------- -------
Net debt (173.8) (248.7) (167.5) (241.7)
---------------------------- ------- ------- ------- -------
16. Post balance sheet events
There were two post balance sheet events: the exchange of
contracts and completion of the Bedford Arms (Rickmansworth), and
the extension of the GBP50 million syndicated facility with the
Royal Bank of Scotland and HSBC by one year (the first year of a
two-year option to extend) to 19 May 2026.
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FR GZGMKKLRGZZG
(END) Dow Jones Newswires
May 19, 2022 02:02 ET (06:02 GMT)
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