TIDMYNGA
RNS Number : 5762A
Young & Co's Brewery PLC
25 May 2023
Young & Co.'s Brewery, P.L.C.
Preliminary results for the 53 weeks ended 3 APRIL 2023
A strong performance and well positioned for future growth
Financial Highlights
2023 2022 Change
53 weeks 52 weeks
GBPm GBPm %
Revenue 368.9 309.0 +19.4
Adjusted operating profit(1) 52.4 51.4 +1.9
Adjusted profit before tax(1) 45.2 41.8 +8.1
Adjusted EBITDA(1) 85.5 82.5 +3.6
Net debt 165.2 173.8 -4.9
Net debt to adjusted EBITDA 1.9x 2.1x +0.2x
---------------------------------------------------- ---------- --------- ---------
Operating profit 43.4 51.7 -16.1
Profit before tax 36.2 42.1 -14.0
Net assets 724.2 699.7 +3.5
Net cash generated from operations 83.8 107.0 -21.7
Adjusted basic earnings per share(1) 64.29p 56.26p +14.3
Basic earnings per share 50.78p 58.83p -13.7
Dividend per share 20.52p 18.81p +9.1
(interim and recommended final)
Net assets per share(2) GBP12.38 GBP11.97 +3.4
All of the results above are from continuing operations.
(1) Reference to an "adjusted" item means that item has been
adjusted to exclude a non-underlying cost of GBP9.0 million
(2022: non-underlying credit of GBP0.3 million). The main adjusting
item relates to a GBP7.0 million impairment on property valuations.
The total value of the estate increased by GBP8.2 million, with
an increase of GBP15.2 million taken through revaluation reserves
and an impairment of GBP7.0 million through the income statement
(see note 3 for adjusting items and note 9 for earnings per
share).
(2) Net assets per share are the group's net assets divided
by the shares in issue at the period end.
PERFORMANCE HIGHLIGHTS
-- Total revenue for the period was GBP368.9 million, up 19.4%
against the prior year. Managed pub like-for-like revenue up by
12.9% on a 52-week basis.
-- Despite facing considerable cost headwinds and prior year
covid one-offs, which included the reduced VAT rate (GBP12.3
million) and business rates relief (GBP6.0 million), adjusted
profit before tax was up 8.1% to GBP45.2 million, and adjusted
operating profit up 1.9% to GBP52.4 million.
-- Our strong financial position, driven by healthy operating
free cashflow has enabled us to continue to invest significantly,
with total investment of GBP58.4 million, GBP24.0 million on
acquisition investment, including six new pubs and GBP34.4 million
across pubs in our existing estate.
-- Net debt (including lease liabilities) has reduced by GBP8.6
million to GBP165.2 million and, with our adjusted EBITDA of
GBP85.5 million, net debt to EBITDA is conservative at 1.9 times.
Including cash balances this leaves us with GBP110.7 million of
headroom on our committed bank facilities for future flexibility
and ongoing investment.
-- We are pleased to recommend a final dividend of 10.26 pence,
resulting in a total dividend for the year of 20.52 pence, up by
9.1%.
-- Sales since the period end performed well, managed pub
like-for-like sales for the last seven weeks up by 4.8%.
Simon Dodd, Chief Executive of Young's, commented:
"I am honoured and privileged to lead such a great company with
its wonderful heritage. Young's is a business that places
investment in its people and pubs at the heart of its decision
making. These results are testament to the hard work of our teams
over the past few years."
"The positive trading momentum of the first half continued
throughout the period, with unwavering customer demand for our
outstanding pubs and the unrivalled Young's experience. The
negative impact of the rail strikes did not stand in the way of us
achieving numerous record weeks, as sales were boosted by glorious
summer sunshine and the first ever winter FIFA World Cup."
"We were pleased to see a further increase in people visiting
our City and Central London pubs alongside positive Christmas
trading. Our performance last year was even more impressive given
the cost headwinds facing the industry and we are encouraged that
some of these pressures are starting to ease. "
"It's been a good start to the new financial year with sunny
weather over Easter and the early May bank holiday. There is also
huge excitement for the Rugby World Cup later this year. We are
confident our premium, well-invested predominantly freehold pub
estate, alongside our healthy balance sheet, will continue to
deliver superior returns for our shareholders."
For further information, please contact:
Young & Co.'s Brewery, P.L.C. 020 8875 7000
Simon Dodd, Chief Executive Officer
Mike Owen, Chief Financial Officer
MHP Communications 020 3128 8742 / 8147
Tim Rowntree/ Robert Collett-Creedy
PRELIMINARY RESULTS FOR THE 53 WEEKSED 3 APRIL 2023
chief EXECUTIVE'S STATEMENT
I am very pleased to announce such a positive set of results. We
have built on the momentum of the resumption of normal trading and
the strong start we made in the first half of this financial year.
The past few years have been tough for our industry as a whole and
these results are a testament to the quality and dedication of our
people, and the value added by recent and consistent investment. It
demonstrates that our strategy of running premium, individual and
differentiated pubs continues to deliver.
Despite the ongoing challenges and prior year comparatives
supported by reduced VAT rates, total revenue was up by 19.4% to
GBP368.9 million (2022: GBP309.0 million) for the 53-week period,
underpinned by our managed pub like-for-like performance, up by
12.9% on a 52-week basis, alongside the continued investment in our
existing estate and strategically selected acquisitions.
We have not been immune to the increasing cost of food,
consumables, and the rise in the National Living Wage, however, our
foresight to fix utility rates until March 2024 has minimised the
full impact of higher energy prices. Despite these headwinds, our
adjusted operating profit was GBP52.4 million (2022: GBP51.4
million), with adjusted profit before tax up by 8.1% to GBP45.2
million (2022: GBP41.8 million). Total profit before tax was
GBP36.2 million (2022: GBP42.1 million) down largely due to a small
movement in our property revaluation. Our adjusted operating margin
remained resilient at 14.2%, down as expected from the prior period
margin of 16.6%, which was heavily bolstered by government covid
support through business rate reductions, lower VAT rates and
grants. Our business remains highly profitable and over the coming
months, as inflation is predicted to soften, we are confident that
margins will improve.
Our strong financial position, driven by healthy operating free
cashflow, has enabled us to continue to invest significantly, with
total investment of GBP58.4 million in the period (2022: GBP73.7
million), whilst still reducing our net debt position. At the
period end, we remain conservatively financed, with net debt
(including lease liabilities) of GBP165.2 million, being 1.9 times
our adjusted EBITDA.
It has been another active year on the acquisition front as we
added six new pubs: the Bedford Arms (Chenies), Carpenter's Arms
(Tonbridge), Half Moon (Windlesham), Merlin's Cave (Chalfont St
Giles), Wild Duck (near Cirencester) and the award-winning Griffin
Inn (Fletching) in East Sussex. Across our existing estate, we
invested GBP34.4 million with notable projects at the Bull
(Streatham), Hare & Hounds (East Sheen), Crown (Bow) and the
Elgin (Notting Hill). We continue to explore opportunities to
maximise our trading areas through underutilised space, with two
beautiful examples at Hort's Townhouse, where we added 19 boutique
bedrooms in central Bristol, and the new roof terrace at the
Marquess of Anglesey (Covent Garden), which is due to open next
month.
We continue to have one eye on the future, ensuring we have a
steady pipeline of new openings. In the second half of the year, we
transferred two of the remaining tenancies back into our managed
estate, Bishop's Vaults (Bishopsgate) and the Clapham North
(Clapham). The latter was completed just days before the period
end, closing immediately for
an investment and will reopen later this summer. Elsewhere,
exciting projects are due to get underway at the Constitution
(Camden), Wild Duck purchased earlier this year, and the old bank
site in Farnham, Surrey, acquired back in 2018.
OUR GREAT PUBS OPERATED BY THE BEST PEOPLE
Our success as a business is dependent on having great pubs with
the best people to operate them. I continue to be impressed by the
quality of the teams we have in place. We focus on providing
high-quality training programmes and development opportunities to
give our people the chance to flourish and further their careers
within Young's. Across our pubs, 73% of general manager
appointments have been internal promotions. In September, I was
pleased to welcome Mark Loughborough to the board following his
promotion to Retail Director, having been a valued member of the
Young's team for 11 years in a number of senior roles. I look
forward to seeing many more of our valued team throughout the
business progressing their careers in the months and years to
come.
OUR ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) STRATEGY
As a group, we are passionate about building a sustainable
company, committed to driving a positive Environmental, Social, and
Governance agenda. During the year, taking advice from our partners
at Savills Earth, we have grouped our properties based on age,
condition, servicing and heritage status, which will guide our net
zero implementation plans. In May, we launched the 'Save While You
Sleep' initiative in partnership with the Zero Carbon Forum, to
guide and encourage energy saving opportunities through operational
best practice. The Ram Agency, our own internal recruitment
platform which caters for the desire to work flexibly, continues to
grow and our digital career pathway, which was launched in May, has
increased employee engagement and enabled management to identify
key talent for succession planning. The board and leadership team
fully support our evolving sustainability strategy and we will
continue to find ways to reduce our carbon footprint and improve
the wellbeing of both our teams and our customers.
CURRENT TRADING AND OUTLOOK
Since the period end, trading has been positive with managed
like-for-like sales up by 4.8% despite the unseasonably cooler and
wetter start to spring, as we were able to capitalise on the
well-timed Easter and bank holiday sunshine. While the additional
bank holiday for the Coronation gave us minimal upside, it was
fantastic to see our customers and pubs celebrating with local
events, highlighting the important role our pubs play in their
communities.
Last month we completed on the freehold purchase of the Stag
(Belsize Park), located close to Hampstead Heath in North London,
adding further to our presence in the capital.
We find ourselves living in challenging times , including
headwinds from high inflation and the resumption of train strikes,
but there is plenty for us to be excited about in the period ahead.
This autumn, the Rugby World Cup provides a fantastic opportunity
given our rugby heritage and we are hopeful that further rail
strike disruption will be limited. The investments and acquisitions
made in the last two years, alongside our future pipeline, provide
tremendous growth potential. The business is completely aligned to
take Young's forward, and we are confident in our ability to
deliver superior returns for our shareholders.
Business review
This year has been a historic one, with many notable events that
have shaped our nation. Over two additional bank holidays,
customers gathered in our pubs to raise a glass and celebrate the
Queen's Jubilee. A few months later, they joined together to pay
their respects on the day of the Queen's funeral. Our pubs play a
pivotal role in their communities, providing a unique and welcoming
environment, helping to bring people together in all kinds of
circumstances.
T otal managed house revenue was up 19.6% for the 53 weeks to
GBP368.0 million (2022: GBP307.7 million), and up 12.9% on a
like-for-like basis over 52 weeks (VAT adjusted like-for-like sales
up 17.6% on a 52-week basis). T rading initially peaked during the
summer months as our exceptional gardens and outdoor spaces helped
us capitalise on the prolonged periods of hot weather when
temperatures reached record levels. Later in the year, the build up
to the festive period was supported by the first winter FIFA World
Cup. This provided additional opportunities for external areas to
boost revenues, as customers gathered to support the home nations.
The negative effect from rail strikes in the Christmas period did
not stand in our way of achieving record festive bookings, which
were also significantly ahead of the same period in 2019.
Unfortunately, the industrial action wasn't only focused on
December, with the estimated GBP3.7 million impact on revenue felt
throughout the past year.
Overall, the return to normal trading has been extremely
positive for our business. Central London and City areas continue
to bounce back as workers and tourists return to the capital. While
working patterns have changed, with fewer people commuting into the
office full-time, the condensed working week has resulted in
increased sales for our pubs in the capital across Tuesday to
Thursday.
We continue to embrace some of the behavioural changes that were
accelerated by the pandemic. Technology is an important part of
this, as it helps to drive bookings and planned events. The Young's
On Tap app still plays a key role in our pub gardens, and we see
this as an important tool to help manage payroll costs and drive
top-line growth. To constantly improve the quality of our database
and connect better with our customers, we need to increase the
number of channels through which we communicate with them. This
will allow us to tailor and target our communications more
effectively, using both traditional and social media channels.
CELEBRATING THE PUB WITH A NEW EXCITING RANGE OF DRINKS
The return to a normal pub environment has also given us the
opportunity to drive our core business, with drink sales ahead of
last period by 21.5%, and up by 17.0% on a like-for-like basis over
52 weeks. In April we launched our new draught beer and cider range
bringing fresh and exciting products to our bars through several
strategic partnerships. We had huge success evolving the range with
Pravha, our new entry level lager, as well as adding Beavertown
Young Sun, Brooklyn Pilsner and most recently Asahi Super Dry, to
ensure our bars remain relevant and offer choice to our customers
while maintaining our drive for premiumisation. Meanwhile,
popularity and success among our established brands continues to
grow, with Guinness volume up 30.9%, now very much seen as a drink
for all seasons, having risen into the list of our top three best
sellers.
Our 'Summer Infusion' campaign generated great interest and
delivered volume growth across our spirit and alcohol-free
categories. Premium spirits were paired with high-quality mixers
and elevated garnishes, giving our customers an alternative to a
regular spirit serve. Ahead of Christmas, to capitalise on the
continued growing market trend of cocktails, we relaunched our
'Cocktail Collective', an innovative new menu including the very
popular 'Gingerbread Martini', winner of our cocktail
competition.
We continue to review our wine lists regularly, introducing new
and interesting wines each year, offering greater premium options
for those customers who wish to trade up. In April, we introduced
Nyetimber, widely regarded as England's finest sparkling wine,
replacing our grand marque Champagne, helping drive 9.0% growth in
the premium sparkling category. Elsewhere, we extended our range of
rosé wine giving customers increased choice and the premium option
capitalising on its 'gin-like' renaissance, with sales up this year
by more than 20%.
In recent years, there has been a growing trend of people
abstaining from alcohol, not just in January. In fact, one in three
visits to the pub now involves no alcohol. This trend is driven by
several factors, including people wanting to moderate their alcohol
intake. To help meet this trend we have been launching new and
exciting drinks in our Lo/No category. Last year we launched our
first alcohol-free draught lager, Estrella Free Damm. We also moved
most of our mixers to low-sugar options and created several
alcohol-free cocktails. While the category still represents a very
small proportion of our sales, we are committed to meeting the
needs of our customers who are looking for healthier and more
mindful drinking options.
FOOD-LED EVENTS ENHANCING THE PUB EXPERIENCE
Food sales continue to be an important part of our business, and
as a mix of sales have increased to 33% compared to pre-pandemic
(2019: 30%), as the pub environment evolves into an all-round
destination. Encouragingly, total food sales grew by 9.1% (53
weeks) against the tough prior year comparatives due to the lower
VAT rate, and were up by 1.7% on a like-for-like 52-week basis (VAT
adjusted like-for-like sales up 12.2% on 52-week basis).
One of the key successes to maintaining the high standards of
our food offer has been ensuring that our classics remain classic.
To help maintain that consistency we launched the 'Young's Digital
Recipe Book', a tool to showcase premium quality and inspire our
teams, highlighting the best-in-class produce available. Updated
every quarter, it contains more than 150 recipes aimed at helping
with the challenges posed by rising food inflation and seasonality
to achieve stronger margins. The quarterly chef forums, held in our
new training and development kitchen located at Copper House
(Wandsworth), allow us to engage with all head chefs from across
the business and provides an important opportunity to communicate
our premium food vision.
At Young's we also take great pride in our food, offering
distinctive dishes and unique food-led experiences that capture the
customers' imagination. During the year we hosted a collection of
'Food for Thought' dinners, showcasing the best of underutilised
British produce such as unfamiliar species and foraged ingredients.
The Oyster Shed (Bank) was recognised with its first AA rosette for
culinary excellence, and its head chef, Natalie Coleman, picked up
the award for 'Pub chef of the year' at the Great British Pub
Awards.
STRONG ROOMS PERFORMANCE IN A BUOYANT MARKET
Total accommodation revenue was up 78.0% for the 53-week period,
in part reflecting the slower opening up of the hotel market in the
prior year as well as the growth in our number of bedrooms through
recent investment and acquisitions. On a like-for-like basis over
52 weeks, accommodation revenue was up by 46.1%, despite the prior
period benefitting from reduced VAT rates. While our like-for-like
occupancy increased to 72.0% (2022: 60.1%), the growth in average
room rates to GBP105.95 (2022: GBP98.65) demonstrated a demand for
our premium room offer and the positives of returning business
travel, particularly in our London pubs with rooms. Resulting
like-for-like RevPAR was GBP76.29 compared with GBP59.25 last
year.
MANAGING OUR COSTS
Like so many businesses, the high inflationary environment has
negatively impacted operating margins this period, though we have
worked hard to mitigate this. While our drink costs are largely
fixed, based on contractual agreements, food prices fluctuate from
month to month and our executive chefs work tirelessly with their
pubs to combat the sharpest rises in food costs. The central
consolidation of food suppliers we undertook earlier this year,
into a one-stop shop model, has helped alleviate cost increases and
reduce our carbon footprint.
Recruitment remains a challenge for the whole industry,
compounded by significant wage inflation driven by some of the
highest increases to the National Living Wage since its
introduction. Investment in our people has never been so important.
Through training and development and access to the Young's career
pathway, we are able to provide our teams with the necessary skills
to help them reach their career goals. The Ram Agency, now with
more than 350 active employees, plays an important role, firstly by
giving team members added flexibility to choose shifts that suit
their requirements, but also helping us manage our cost base,
reducing the reliance on agency staff. The in-house agency brings
together people with the necessary skills across a range of roles,
from general managers to chefs, front and back of house team
members, trained in the Young's way of working.
The energy crisis has affected almost all businesses and
although we have fixed our utility rates until March 2024, the big
rises in energy costs meant that we still spent an additional
GBP5.5 million in the year, an increase of 82% on last year. The
cost headwinds we faced this period have been compounded by
government support in the prior year, where in addition to the
lower VAT rate (GBP12.3 million), we benefitted from business rates
relief, which resulted in an additional cost of GBP6.0 million this
period. Despite these headwinds, total managed house adjusted
operating profit was up 1.7% to GBP73.3 million (2022: GBP72.1
million).
INVESTMENT
During the year, we spent GBP34.4 million on our existing estate
to ensure that our pubs remain premium, individual and
well-invested. The focus on restoring our pubs has seen us complete
investments in a total of 34 pubs, with standout schemes at the
Crown (Bow), Coborn (Mile End), Crown (Lee), Bull (Streatham),
Brook Green and Hammersmith Ram (both in Hammersmith), Halfway
House (Earlsfield) and the East Hill (Wandsworth).
The final quarter of the year was a key period of investment, we
were onsite with six major projects, where exciting schemes looked
to capitalise on previously underutilised space within pubs to
provide fantastic growth potential for the upcoming years. In
Bristol, having been closed for most of the year, the upper parts
of Hort's Townhouse were transformed to create a stunning 19
bedroom 'pub with rooms'. At the Hare & Hounds (East Sheen),
extensive work to the large garden has created more than 200 covers
in the various huts and pergolas. Finally, in Central London, we
are currently onsite at the Marquess of Anglesey (Covent Garden),
where the full repositioning will include a stunning new roof
terrace, allowing customers the opportunity to escape the densely
populated streets below. This project is due to complete and reopen
next month in time for peak summer trade.
On the acquisition front, we added six new pubs in the period.
All our new additions are individual and unique businesses located
in affluent commuter towns that present Young's with the
opportunity to gain a foothold in a previously unrepresented
geography. In total we added 40 bedrooms, with 18 bedrooms at the
characterful Bedford Arms (Chenies), 9 bedrooms at the Carpenter's
Arms (Tonbridge) and 13 bedrooms at the Griffin Inn (Fletching) in
East Sussex. After acquiring both the Merlin's Cave (Chalfont St
Giles) and the Half Moon (Windlesham) we went onsite to complete
investment schemes to take these pubs to the next level. Their
locations in picturesque village settings make these businesses
perfect Young's pubs and they will both play an important part in
our future. Our acquisition of the Wild Duck (near Cirencester),
adds further to the future growth pipeline. In recent years, this
impressive site has been closed as part of a monumental
back-to-brick renovation, and following our extensive investment,
will reopen as another premium Young's pub with rooms in the heart
of the Cotswolds.
During the period we transferred two of the remaining tenanted
pubs to our managed estate. In the heart of the City, we invested
and opened Bishop's Vaults (Bishopsgate) with a premium wine bar
located in the vaults. In March, we took back the Clapham North,
which immediately closed and will reopen later this summer after a
major investment.
Following the disposal of the Bridge Hotel (Greenford) in March
2023, we finished the period with a total of 227 pubs (2022: 222),
including 39 pubs providing a total of 793 bedrooms.
OTHER KEY AREAS
PROPERTY
Our balance sheet strength is underpinned by our predominantly
freehold estate in many highly desirable locations. 187 of our 227
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 GBP842.5 million (2022: GBP808.0
million). The carrying value of property leases, including long
leaseholds, is separately recognised as right-of-use assets in note
11. We have continued to add value through major developments to
improve our existing pubs and strategic acquisitions, primarily
focussing on freehold assets.
Each year we revalue our pub estate to reflect current market
values. 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.
Despite our return to profitable trade, the impact of the last
few years has been considerable for individual pubs as they
continue to build back to pre-pandemic levels. Pub property market
sentiment has remained positive, reflected by the level of activity
and property prices; as a result, we have seen a net upward
revaluation movement of GBP8.2 million. This is comprised of an
upward movement of GBP15.2 million (2022: GBP28.7 million upward
movement) reflected in the revaluation reserve and a downward
movement of GBP7.0 million (2022: GBP0.8 million upward movement)
recognised as an adjusting item in the income statement.
TREASURY AND GOING CONCERN
At 3 April 2023, the group had cash in bank of GBP10.7 million
and committed borrowing facilities of GBP205.0 million having
elected not to renew the GBP30.0 million facility with NatWest in
March 2023 given the current headroom. The GBP105.0 million of
drawn facilities are all fully interest rate hedged, and in
addition to these we maintain a GBP10.0 million overdraft with
HSBC.
We are highly cash generative and despite another year of
significant investment, our net debt including lease liabilities
has fallen to GBP165.2 million (2022: GBP173.8 million), with net
debt to adjusted EBITDA ratio conservative at 1.9 times (2022: 2.1
times).
Whilst our pubs continue to trade extremely well, it remains
prudent to recognise a small degree of uncertainty ahead due to any
potential slowdown in consumer spending influenced by the ongoing
cost of living increases 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, ending 1 July 2024. The
base case model assumes we continue to trade as now whilst
reflecting the inflationary environment that currently exists, 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 25% in profit across the period. This aims to capture the
potential slowdown in consumer spending influenced by the ongoing
cost of living crisis. The cost inflation scenario includes an
average 8% increase in the food cost base and 10% increase in
general pub operating costs 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.
The impact of climate change on going concern has been
considered and determined that there is no impact on the business
during the going concern period. Aligned with the group's
developing ESG strategy this will continue to feature in future
assessments, as the group determines the potential wider impact on
the asset base, capital expenditure and cost of compliance.
While the group expects to have available facilities of GBP205.0
million during the going concern period, the plan to renegotiate
the GBP20.0 million term loan, due May 2024, falls within this
period. However, given that those negotiations have yet to take
place, for going concern purposes, the group has assumed that
available facilities will be GBP185.0 million at the end of the
going concern period. 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 revised debt structure, the board is
confident that the group is able to manage its business risks and
to continue in operational existence. Accordingly, the board
continues to adopt the going concern basis in preparing the
consolidated financial statements. Further details are set out in
note 1 of the attached 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 scheme
surplus has decreased by GBP8.5 million to GBP3.7 million, driven
by a decrease in the return on the scheme's assets and an increase
in the discount rate applied. 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 were GBP9.0 million in the period (2022:
credit of GBP0.3 million), and as previously mentioned, the
majority relates to the net downward movement in property
revaluation for the period of GBP7.0 million. Purchase costs
relating to the six acquisitions were GBP1.1 million and there was
an additional GBP0.6 million of tenant compensation for Bishop's
Vaults (Bishopsgate) and an unlicensed property (Ealing). The
remaining GBP0.3 million relates to restructuring costs following a
reorganisation at Copper House, our corporate head office.
TAX
A tax charge of GBP6.5 million (2022: GBP17.5 million charge)
was recognised for the year. The effective tax rate was 18.0%
(2022: 33.7%) compared to the statutory rate of 19.0% with the
difference primarily driven by the remeasurement of deferred tax
assets 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 7.
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 64.29 pence (2022: 56.26 pence). On an unadjusted
basis, the earnings per share was 50.78 pence (2022: 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 20.52 pence (2022: 18.81 pence).
Simon Dodd
Chief Executive
24 May 2023
GROUP INCOME STATEMENT
For the 53 weeks ended 3 April 2023
2023 2022
53 weeks 52 weeks
Notes GBPm GBPm
--------------------------------------------------- ----- -------- --------
Continuing operations
Revenue 5 368.9 309.0
Other income 6 - 5.0
Operating costs before adjusting items (316.5) (262.6)
--------------------------------------------------- ----- -------- --------
Adjusted operating profit 52.4 51.4
Adjusting items 3 (9.0) 0.3
--------------------------------------------------- ----- -------- --------
Operating profit 43.4 51.7
Finance income 0.1 -
Finance costs (7.6) (9.5)
Finance income/(charge) for pension obligations 12 0.3 (0.1)
--------------------------------------------------- ----- -------- --------
Profit before tax from continuing operations 36.2 42.1
Income tax expense 7 (6.5) (17.2)
--------------------------------------------------- ----- -------- --------
Profit for the period from continuing operations 29.7 24.9
Profit for the period from discontinued operations - 9.5
--------------------------------------------------- ----- -------- --------
Profit for the period attributable to shareholders
of the parent company 29.7 34.4
---------------------------------------------------------- -------- --------
Pence Pence
--------------------------------- ----- ---------------------- -----
Earnings per 12.5p ordinary share
Basic 9 50.78 58.83
Diluted 9 50.74 58.80
--------------------------------- ----- ---------------------- -----
Earnings per 12.5p ordinary share for continuing operations
Basic 9 50.78 42.58
Diluted 9 50.74 42.56
--------------------------------- ----- ---------------------- -----
GROUP STATEMENT OF COMPREHENSIVE INCOME
For the 53 weeks ended 3 April 2023
2023 2022
53 weeks 52 weeks
Notes GBPm GBPm
-------------------------------------------------- ----- -------- --------
Profit for the period 29.7 34.4
-------------------------------------------------- ----- -------- --------
Other comprehensive income
Items that will not be reclassified subsequently to
profit or loss:
Unrealised gain on revaluation of property 10 15.2 28.7
Remeasurement of retirement benefit schemes 12 (10.1) 17.2
Tax on above components of other comprehensive
income 7 (1.2) (25.3)
Items that will be reclassified subsequently to profit
or loss:
Fair value movement of interest rate swaps 3.1 5.2
Tax on fair value movement of interest rate
swaps (0.8) (1.1)
-------------------------------------------------- ----- -------- --------
6.2 24.7
-------------------------------------------------- ----- -------- --------
Total comprehensive income attributable
to shareholders of the parent company 35.9 59.1
-------------------------------------------------- ----- -------- --------
Total comprehensive income attributable
to shareholders of the parent company from
continuing operations 35.9 49.6
-------------------------------------------------- ----- -------- --------
Total comprehensive income attributable
to shareholders of the parent company from
discontinued operations - 9.5
-------------------------------------------------- ----- -------- --------
GROUP BALANCE SHEET
At 3 April 2023
Group
---------------------------
Restated Restated
2023 2022 2021
Notes GBPm GBPm GBPm
--------------------------------- ----- ------- -------- --------
Non-current assets
Goodwill 32.5 32.5 32.5
Property and equipment 10 842.5 808.0 773.7
Right-of-use assets 11 142.9 147.0 158.0
Derivative financial instruments 2.3 2.2 -
Retirement benefit schemes 12 5.4 14.3 -
--------------------------------- ----- ------- -------- --------
1,025.6 1,004.0 964.2
--------------------------------- ----- ------- -------- --------
Current assets
Inventories 5.4 4.7 2.6
Trade and other receivables 9.5 8.9 10.4
Income tax receivable - 6.2 5.8
Derivative financial instruments 2.7 - -
Cash 10.7 34.0 4.7
--------------------------------- ----- ------- -------- --------
28.3 53.8 23.5
--------------------------------- ----- ------- -------- --------
Asset held for sale - - 1.2
--------------------------------- ----- ------- -------- --------
Total assets 1,053.9 1,057.8 988.9
--------------------------------- ----- ------- -------- --------
Current liabilities
Borrowings - (30.0) (29.8)
Lease liabilities 13 (4.8) (4.9) (4.9)
Income tax payable (0.9) - -
Derivative financial instruments - (0.3) (1.8)
Trade and other payables (46.6) (43.7) (15.8)
--------------------------------- ----- ------- -------- --------
(52.3) (78.9) (52.3)
--------------------------------- ----- ------- -------- --------
Non-current liabilities
Borrowings (104.2) (103.8) (143.4)
Lease liabilities 13 (66.9) (69.1) (75.3)
Derivative financial instruments - - (1.4)
Deferred tax liabilities (104.6) (104.2) (65.0)
Retirement benefit schemes 12 (1.7) (2.1) (6.1)
--------------------------------- ----- ------- -------- --------
(277.4) (279.2) (291.2)
--------------------------------- ----- ------- -------- --------
Total liabilities (329.7) (358.1) (343.5)
--------------------------------- ----- ------- -------- --------
Net assets 724.2 699.7 645.4
--------------------------------- ----- ------- -------- --------
Capital and reserves
Share capital 7.3 7.3 7.3
Share premium 7.8 7.7 7.6
Capital redemption reserve 1.8 1.8 1.8
Hedging reserve 4.0 1.7 (2.4)
Revaluation reserve 260.9 249.4 253.6
Retained earnings 442.4 431.8 377.5
--------------------------------- ----- ------- -------- --------
Total equity 724.2 699.7 645.4
--------------------------------- ----- ------- -------- --------
COMPANY BALANCE SHEET
At 3 April 2023
Company
---------------------------
Restated Restated
2023 2022 2021
Notes GBPm GBPm GBPm
--------------------------------- ----- ------- -------- --------
Non-current assets
Goodwill 31.0 31.0 31.0
Property and equipment 10 838.5 803.5 769.1
Right-of-use assets 11 135.8 139.4 149.2
Investments in subsidiaries 14.3 14.3 14.3
Derivative financial instruments 2.3 2.2 -
Retirement benefit schemes 12 5.4 14.3 -
--------------------------------- ----- ------- -------- --------
1,027.3 1,004.7 963.6
--------------------------------- ----- ------- -------- --------
Current assets
Inventories 5.4 4.7 2.6
Trade and other receivables 9.5 9.7 11.3
Income tax receivable - 6.3 6.0
Derivative financial instruments 2.7 - -
Cash 10.7 34.0 4.7
--------------------------------- ----- ------- -------- --------
28.3 54.7 24.6
--------------------------------- ----- ------- -------- --------
Asset held for sale - - 1.2
--------------------------------- ----- ------- -------- --------
Total assets 1,055.6 1,059.4 989.4
--------------------------------- ----- ------- -------- --------
Current liabilities
Borrowings - (30.0) (29.8)
Lease liabilities 13 (4.0) (4.1) (4.1)
Income tax payable (0.8) - -
Derivative financial instruments - (0.3) (1.8)
Trade and other payables (56.2) (55.8) (27.5)
--------------------------------- ----- ------- -------- --------
(61.0) (90.2) (63.2)
--------------------------------- ----- ------- -------- --------
Non-current liabilities
Borrowings (104.2) (103.8) (143.4)
Lease liabilities 13 (61.9) (63.6) (69.1)
Derivative financial instruments - - (1.4)
Deferred tax liabilities (104.4) (104.0) (64.8)
Retirement benefit schemes 12 (1.7) (2.1) (6.1)
--------------------------------- ----- ------- -------- --------
(272.2) (273.5) (284.8)
--------------------------------- ----- ------- -------- --------
Total liabilities (333.2) (363.7) (348.0)
--------------------------------- ----- ------- -------- --------
Net assets 722.4 695.7 641.4
--------------------------------- ----- ------- -------- --------
Capital and reserves
Share capital 7.3 7.3 7.3
Share premium 7.8 7.7 7.6
Capital redemption reserve 1.8 1.8 1.8
Hedging reserve 4.0 1.7 (2.4)
Revaluation reserve 252.0 240.2 244.4
Retained earnings 449.5 437.0 382.7
--------------------------------- ----- ------- -------- --------
Total equity 722.4 695.7 641.4
--------------------------------- ----- ------- -------- --------
STATEMENTS OF CASH FLOW
For the 53 weeks ended 3 April 2023
Group Company
------------------ ------------------
2023 2022 2023 2022
53 weeks 52 weeks 53 weeks 53 weeks
Notes GBPm GBPm GBPm GBPm
---------------------------------------- ------ -------- -------- -------- --------
Operating activities
Net cash generated from operations 14 83.8 107.0 82.6 106.3
Tax paid (0.9) (5.1) (0.9) (5.1)
---------------------------------------- ------ -------- -------- -------- --------
Net cash flows from operating
activities 82.9 101.9 81.7 101.2
---------------------------------------- ------ -------- -------- -------- --------
Investing activities
Proceeds from disposal of property
and equipment(1) 6.1 59.7 6.1 59.7
Purchase of property and equipment 10 (40.2) (36.9) (40.2) (36.9)
Business combinations, net of
cash acquired (18.2) (36.9) (18.2) (36.9)
Net cash used in investing activities (52.3) (14.1) (52.3) (14.1)
---------------------------------------- ------ -------- -------- -------- --------
Financing activities
Interest paid (6.9) (9.7) (6.6) (9.5)
Issued equity, net of transaction
costs 0.1 0.1 0.1 0.1
Equity dividends paid (12.0) (5.0) (12.0) (5.0)
Payment of principal portion
of lease liabilities (5.1) (4.1) (4.2) (3.6)
Repayment of borrowings(2) (30.0) (39.8) (30.0) (39.8)
Net cash flows used in financing
activities (53.9) (58.5) (52.7) (57.8)
------------------------------------------------ -------- -------- -------- --------
Net increase in cash (23.3) 29.3 (23.3) 29.3
Cash at the beginning of the
period 34.0 4.7 34.0 4.7
---------------------------------------- ------ -------- -------- -------- --------
Cash at the end of the period 10.7 34.0 10.7 34.0
---------------------------------------- ------ -------- -------- -------- --------
(1) During the current period to 3 April 2023, GBP6.1 million related
to the sale of the Bridge Hotel (Greenford). During the prior period
to 28 March 2022, GBP53.0 million related to the sale of 56 tenanted
pubs. The remaining balance relates to other disposals of tenanted sites.
(2) During the current period to 3 April 2023 the group repaid the GBP30.0
million bilateral term loan with NatWest. During the prior period to
28 March 2022 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.
GROUP STATEMENT OF CHANGES IN EQUITY
At 3 April 2023
Capital
Share redemption Hedging Revaluation Retained Total
capital(1) reserve reserve reserve earnings equity
Notes GBPm GBPm GBPm GBPm GBPm GBPm
------------------------------------- ---------- ---------- ------- ----------- -------- ------
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 10 - - - 28.7 - 28.7
Remeasurement of retirement
benefit schemes 12 - - - - 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 - - (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
--------------------------------- ---------- ---------- ------- ----------- -------- ------
Total comprehensive income
Profit for the period - - - - 29.7 29.7
--------------------------------- ---------- ---------- ------- ----------- -------- ------
Other comprehensive income
Unrealised gain on revaluation
of property 10 - - - 15.2 - 15.2
Remeasurement of retirement
benefit schemes 12 - - - - (10.1) (10.1)
Net movement of interest rate
swaps - cash flow hedge - - 3.1 - - 3.1
Tax on above components of other
comprehensive
income - - (0.8) (3.7) 2.5 (2.0)
--------------------------------- ---------- ---------- ------- ----------- -------- ------
- - 2.3 11.5 (7.6) 6.2
--------------------------------- ---------- ---------- ------- ----------- -------- ------
Total comprehensive income - - 2.3 11.5 22.1 35.9
--------------------------------- ---------- ---------- ------- ----------- -------- ------
Transactions with owners recorded directly in equity
Share capital issued 0.1 - - - - 0.1
Dividends paid on equity shares - - - - (12.0) (12.0)
Share based payments - - - - 0.5 0.5
--------------------------------- ---------- ---------- ------- ----------- -------- ------
0.1 - - - (11.5) (11.4)
--------------------------------- ---------- ---------- ------- ----------- -------- ------
At 3 April 2023 15.1 1.8 4.0 260.9 442.4 724.2
--------------------------------- ---------- ---------- ------- ----------- -------- ------
1 Total share capital comprises the nominal value of the share capital
issued and fully paid of GBP7.3 million (2022: GBP7.3 million) and the
share premium account of GBP7.8 million (2022: GBP7.7 million). Share capital
issued in the period comprises the nominal value of GBPnil million (2022:
GBPnil million) and share premium of GBP0.1 million (2022: GBP0.1 million).
NOTES TO THE FINANCIAL STATEMENTS
For the 53 weeks ended 3 April 2023
1. General information
This preliminary announcement was approved by the board on 24
May 2023. The financial statements in it are not the group's
statutory financial statements. The statutory financial statements
for the period ended 28 March 2022 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 3 April 2023, which are expected to be delivered to the
Registrar of Companies shortly. The report for the 2023 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 2022 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 53 weeks ended
3 April 2023 and the 52 weeks ended 28 March 2022 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 3 April 2023. The financial statements will also be
available on the group's website, www.youngs.co.uk .
Restatement of prior periods
In accordance with the requirements of IAS 1 Presentation of
Financial Statements and IAS 12 Income Taxes, management have
restated the deferred tax assets as at 28 March 2022 and 29 March
2021 to be presented net against the deferred tax liabilities. The
impact on the group balance sheet at 28 March 2022 is a reduction
in the deferred tax asset of GBP4.1 million to GBPnil and a
decrease in the deferred tax liability of GBP4.1 million to
GBP104.2 million. This reduces the non-current asset subtotal by
GBP4.1 million to GBP1,004.0 million and the non-current liability
subtotal by GBP4.1 million to GBP279.2 million. The total assets
are reduced by GBP4.1 million to GBP1,057.8 million and the total
liabilities are reduced by GBP4.1 million to GBP358.1 million.
The impact on the group balance sheet at 29 March 2021 is a
reduction in the deferred tax asset of GBP8.6 million to GBPnil and
a decrease in the deferred tax liability of GBP8.6 million to
GBP65.0 million. This reduces the non-current asset subtotal by
GBP8.6 million to GBP964.2 million and the non-current liability
subtotal by GBP8.6 million to GBP291.2 million. The total assets
are reduced by GBP8.6 million to GBP988.9 million and the total
liabilities are reduced by GBP8.6 million to GBP343.5 million. The
overall impact on net assets in both prior periods is GBPnil. There
is no impact to the income statement or cash flow statement in
either prior period as a result of this adjustment.
The impact on the company balance sheet at 28 March 2022 is a
reduction in the deferred tax asset of GBP4.1 million to GBPnil and
a decrease in the deferred tax liability of GBP4.1 million to
GBP104.0 million. This reduces the non-current asset subtotal by
GBP4.1 million to GBP1,004.7 million and the non-current liability
subtotal by GBP4.1 million to GBP273.5 million. The total assets
are reduced by GBP4.1 million to GBP1,059.4 million and the total
liabilities are reduced by GBP4.1 million to GBP363.7 million.
The impact on the company balance sheet at 29 March 2021 is a
reduction in the deferred tax asset of GBP8.6 million to GBPnil
million and a decrease in the deferred tax liability of GBP8.6
million to GBP64.8 million. This reduces the non-current asset
subtotal by GBP8.6 million to GBP963.6 million and the non-current
liability subtotal by GBP8.6 million to GBP284.8 million. The total
assets are reduced by GBP8.6 million to GBP989.4 million and the
total liabilities are reduced by GBP8.6 million to GBP348.0
million. The overall impact on net assets in both prior periods is
GBPnil. There is no impact to the income statement or cash flow
statement in either prior period as a result of this
adjustment.
Amendments to accounting standards
Amendments to accounting standards applied for the first time
during the period were as follows:
(1) Amendments to IAS 16 - Property, Plant and Equipment:
Proceeds before Intended Use;
(2) Amendments to IAS 37 - Onerous Contracts: Cost of Fulfilling
a Contract; and
(3) Amendments to IFRS 3 Business Combinations - Reference to
the Conceptual Framework.
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 3 April 2023, the group had cash in bank of GBP10.7 million
and committed borrowing facilities of GBP205.0 million, of which
GBP105.0 million was drawn down. The group expects, by 1 July 2024
(the 'going concern' period), to have available facilities of
GBP205.0 million, with the plan to renegotiate the GBP20.0 million
term loan that is due May 2024. However, given that those
negotiations have yet to take place, for going concern purposes the
group has assumed that available facilities will be GBP185.0
million at the end of the going concern period. In addition to
these committed facilities, the group has a GBP10.0 million
overdraft with HSBC, which is not committed, and is therefore not
assumed to continue for the purpose of this assessment.
As part of the directors' consideration of the appropriateness
of adopting the going concern basis, the group has modelled a base
case and three sensitised scenarios for the going concern period.
The base case is the board approved budget to March 2024 as well as
the board approved strategic plan covering April to June 2024. The
key judgements applied are the extent of any influence on trade
because of the economic downturn and its impact on consumers, and
the inflationary cost pressures that the hospitality industry is
continuing to face.
The base case model assumes the group continues to trade as now
whilst reflecting the inflationary environment that currently
exists across the going concern period. The general reduction in
trade scenario looks at a decline of 20% in sales and 25% in profit
across the period. This aims to capture the potential slowdown in
consumer spending influenced by the ongoing cost of living crisis.
The cost inflation scenario includes an average 8% increase in the
food cost base and 10% increase in general pub operating costs 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. The group has 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 the group's
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 the group 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).
Consequentially there would need to be a sales reduction of c.40%
and profit reduction of c.60% between April 2023 and 2024 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.
The group 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 the group's
developing ESG strategy this will continue to feature in future
assessments, as the group determines the potential wider impact on
the 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 is confident that the group is able to manage its business
risks and therefore continue in operational existence for the
foreseeable future. For this reason, the group continues to adopt
the going concern basis in preparing its financial statements.
2. Segmental reporting
The group historically had 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 consisted of pubs owned
or leased by the company and leased or subleased to third parties.
Revenue was derived from rents payable by, and sales of drink made
to, tenants. Unallocated related to head office income and costs,
and unlicensed properties. During the prior period, most of the
pubs within the tenanted house segment were disposed of and
classified as a discontinued operation.
Since the disposal of the majority of the tenanted house
segment, in line with the requirements of IFRS 8 Operating
Segments, the group is organised into one reporting segment, that
of operating managed houses. This is in line with the internal
reporting to the executive board of the group for the purpose of
deciding on the allocation of resources and assessing performance.
On this basis, the group now reports on one operating segment, with
the remaining tenanted houses grouped together with the unallocated
segment and reported as 'all other segments'. In line with this
approach, prior period comparatives for tenanted houses and
unallocated have been grouped together under 'all other
segments'.
Total segment revenue is derived externally, with no
intersegment revenues between the segments in the prior period. The
group's revenue is derived entirely from the UK.
Income statement Managed All other
houses segments Total
53 weeks 53 weeks 53 weeks
2023 GBPm GBPm GBPm
-------------------------------------------- -------- --------- --------
Drink sales 229.1 0.3 229.4
Food sales 115.5 - 115.5
Accommodation sales 21.9 - 21.9
-------------------------------------------- -------- --------- --------
Total revenue from contracts with customers
from continuing operations 366.5 0.3 366.8
Other income 1.5 0.6 2.1
-------------------------------------------- -------- --------- --------
Total revenue recognised from continuing
operations 368.0 0.9 368.9
-------------------------------------------- -------- --------- --------
Adjusted operating profit/(loss) from
continuing operations 73.3 (20.9) 52.4
Adjusting items (8.5) (0.5) (9.0)
-------------------------------------------- -------- --------- --------
Operating profit/(loss) from continuing
operations 64.8 (21.4) 43.4
-------------------------------------------- -------- --------- --------
Managed All other
houses segments Total
52 weeks 52 weeks 52 weeks
2022 GBPm GBPm GBPm
-------------------------------------------- -------- --------- --------
Drink sales 188.5 0.5 189.0
Food sales 105.9 - 105.9
Accommodation sales 12.3 - 12.3
-------------------------------------------- -------- --------- --------
Total revenue from contracts with customers
from continuing operations 306.7 0.5 307.2
income 1.0 0.8 1.8
-------------------------------------------- -------- --------- --------
Total revenue recognised from continuing
operations 307.7 1.3 309.0
-------------------------------------------- -------- --------- --------
Adjusted operating profit/(loss) from
continuing operations 72.1 (20.7) 51.4
Adjusting items (0.4) 0.7 0.3
-------------------------------------------- -------- --------- --------
Operating profit/(loss) from continuing
operations 71.7 (20.0) 51.7
-------------------------------------------- -------- --------- --------
3. Adjusting items
The table below shows adjusting items from continuing operations.
During the period, the cash flow impact of adjusting items was GBP3.9
million (2022: GBP3.8 million), of which GBP3.0 million related to investing
activities and GBP0.9 million related to operating activities (2022:
GBP3.6 million and GBP0.2 million respectively).
2023 2022
53 weeks 52 weeks
GBPm GBPm
------------------------------------------------------------ --------- ---------
Amounts included in operating profit:
Upward movement on the revaluation of properties
(note 10)(1) 4.8 5.5
Downward movement on the revaluation of properties
(note 10)(1) (11.8) (4.7)
Purchase costs(2) (1.1) (2.7)
Tenant compensation(3) (0.6) (0.2)
Restructuring costs(4) (0.3) -
Net profit on disposal of properties(5) - 2.4
------------------------------------------------------------ --------- ---------
(9.0) 0.3
------------------------------------------------------------ --------- ---------
Tax on adjusting items:
------------------------------------------------------------ --------- ---------
Tax attributable to adjusting items 1.2 (0.6)
Impact of change in corporation tax rate(6) (0.1) (6.9)
------------------------------------------------------------ --------- ---------
1.1 (7.5)
------------------------------------------------------------ --------- ---------
Total adjusting items after tax (7.9) (7.2)
------------------------------------------------------------ --------- ---------
(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 GBP4.8 million
(2022: GBP5.5 million) representing reversals of previous
impairments recognised in the income statement, and a downward
movement of GBP11.8 million (2022: GBP4.7 million), representing
downward movements in excess of amounts recognised in equity. These
resulted in a net downward movement of GBP7.0 million (2022: an
upward movement of GBP0.8 million) which has been recognised in the
income statement. The downward movement for the period ended 3
April 2023 was split between land and buildings of GBP7.0 million
(2022: GBP0.8 million upward) and fixtures and fittings of GBPnil
(2022: GBPnil). See note 10 for information on the revaluation of
properties.
(2) Costs related to professional fees and stamp duty land tax
arising on the purchase of the Bedford Arms (Chenies), Merlin's
Cave (Chalfont St Giles), Half Moon (Windlesham), Griffin Inn
(Fletching) and the Carpenter's Arms (Tonbridge). In the prior
period, the 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 the Cherry Tree (Dulwich), East Hill (Wandsworth) and
Riverside House (Wandsworth). The prior period costs included legal
and professional fees and stamp duty land tax (note 7).
(3) Tenant compensation of GBP0.6 million was paid to the
previous tenants of an unlicensed property (Ealing) and the
Bishop's Vaults (Bishopsgate) to terminate their lease agreements
early. During the prior period, tenant compensation of GBP0.2
million was paid to previous tenants of the Grand Junction Arms
(Harlesden) to terminate their lease agreement early.
(4) Restructuring costs of GBP0.3 million related to a one-off
reorganisation of the group's head office functions. These were
largely made up of severance costs.
(5) During the current period, the group disposed of the Bridge
Hotel (Greenford) and no profit or loss was recognised on the
disposal. In the prior period, 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).
(6) 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 at the balance sheet date, with a net charge of GBP0.1
million (2022: GBP6.9 million) associated with the rate change. The
GBP0.1 million is equal to the net of a GBP0.4 million adjustment
in respect of deferred tax of prior periods, and a GBP0.3 million
credit in respect of deferred tax measured at a higher rate. 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
do not form part of the group's underlying operations. 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.
2023 2022
53 weeks 52 weeks
------------------------------- -------------------------------
Adjusting Adjusting
Unadjusted items Adjusted Unadjusted items Adjusted
GBPm GBPm GBPm GBPm GBPm GBPm
---------------------------------- ---------- --------- -------- ---------- --------- --------
EBITDA 83.5 2.0 85.5 82.0 0.5 82.5
Depreciation and net movement
on the revaluation of properties (40.1) 7.0 (33.1) (30.3) (0.8) (31.1)
---------------------------------- ---------- --------- -------- ---------- --------- --------
Operating profit 43.4 9.0 52.4 51.7 (0.3) 51.4
Finance income 0.1 - 0.1 - - -
Finance costs (7.6) - (7.6) (9.5) - (9.5)
Finance charge for pension
obligations 0.3 - 0.3 (0.1) - (0.1)
---------------------------------- ---------- --------- -------- ---------- --------- --------
Profit before tax 36.2 9.0 45.2 42.1 (0.3) 41.8
---------------------------------- ---------- --------- -------- ---------- --------- --------
During the period, GBP105.2 million (2022: GBP102.2 million) of adjusted
EBITDA related to managed houses and GBP0.5 million (2022: GBP0.6 million)
related to tenanted houses. Adjusted negative EBITDA of GBP20.2 million
(2022: negative GBP20.3 million) related to head office costs and was unallocated.
5. Revenue
The recognition of revenue from continuing operations under each of the
group's material revenue streams is
as follows:
2023 2022
53 weeks 52 weeks
GBPm GBPm
----------------------------------------------------- ---------- ---------
Drink sales 229.4 189.0
Food sales 115.5 105.9
Accommodation sales 21.9 12.3
----------------------------------------------------- ---------- ---------
Total revenue from contracts with customers 366.8 307.2
Other income 2.1 1.8
----------------------------------------------------- ---------- ---------
Total revenue recognised 368.9 309.0
----------------------------------------------------- ---------- ---------
6. Government grants and assistance
During the prior 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 was as follows:
2023 2022
53 weeks 52 weeks
Government grant scheme Income statement line impacted GBPm GBPm
--------------------------------- --------------------------------- --------- --------
Government grant income Other income - 5.0
Coronavirus Job Retention Scheme Operating costs before adjusting
('CJRS') items - 2.2
--------------------------------- --------------------------------- --------- --------
Total government grants received - 7.2
-------------------------------------------------------------------- -------- --------
All government grants received were in respect of continuing operations.
During the prior period, the group continued to take advantage of the
business rate holiday, saving GBP3.7 million, further business rate relief
under the expanded retail discount, saving GBP2.0 million, and reduced
5% VAT on eligible sales until 30 September 2021, followed by 12.5% VAT
up until 31 March 2022.
Cash flows from grants received were included in cash flows from operations.
7. Taxation
The major components of income tax expense for the periods ended
3 April 2023 and 28 March 2022 are:
2023 2022
53 weeks 52 weeks
Tax charged in the group income statement GBPm GBPm
------------------------------------------------------------ -------- --------
Current income tax
Current tax expense 7.3 4.8
Adjustment in respect of current income tax of prior
periods 0.9 (0.1)
------------------------------------------------------------ -------- --------
8.2 4.7
------------------------------------------------------------ -------- --------
Deferred tax
Relating to origin and reversal of temporary differences (0.3) 6.7
Adjustment in respect of deferred tax of prior periods (1.1) (0.8)
Deferred tax measured at higher rate (0.3) -
Change in corporation tax rate - 6.9
------------------------------------------------------------ -------- --------
(1.7) 12.8
------------------------------------------------------------ -------- --------
Income tax charged in the income statement(1) 6.5 17.5
------------------------------------------------------------ -------- --------
(1) During the current period, all income tax charged relates to continuing
operations. During the prior period, income tax charged related to GBP17.2
million from continuing operations and GBP0.3 million from discontinued
operations.
2023 2022
53 weeks 52 weeks
Deferred tax in the group income statement GBPm GBPm
------------------------------------------------------------ -------- --------
Property revaluation and disposals (1.8) 2.3
Capital allowances (0.5) 2.4
Retirement benefit schemes 0.4 0.2
Share based payments 0.1 -
Trade losses - 1.0
Adjustment in respect of deferred tax of prior periods 0.4 -
Deferred tax measured at higher rate (0.3) -
Change in corporation tax rate - 6.9
------------------------------------------------------------ -------- --------
Deferred tax (credited)/charged in the income statement (1.7) 12.8
------------------------------------------------------------ -------- --------
Deferred tax in the group statement of other comprehensive income
--------------------------------------------------------------------------------
Property revaluation and disposals 3.7 4.8
Retirement benefit schemes (2.5) 3.3
Interest rate swaps - cash flow hedge 0.8 1.0
Change in corporation tax rate - 17.3
------------------------------------------------------------ -------- --------
Deferred tax charged to other comprehensive income 2.0 26.4
------------------------------------------------------------ -------- --------
8. Dividends on equity shares
2023 2022 2023 2022
53 weeks 52 weeks 53 weeks 52 weeks
Pence per Pence per share GBPm GBPm
share
--------------------------------- --------- --------------- -------- --------
Final dividend (previous period) 10.26 - 6.0 -
Interim dividend (current
period) 10.26 8.55 6.0 5.0
--------------------------------- --------- --------------- -------- --------
20.52 8.55 12.0 5.0
--------------------------------- --------- --------------- -------- --------
The table above sets out dividends paid. In addition, the board
is proposing a final dividend in respect of the period ended 3
April 2023 of 10.26 pence per share at a cost of GBP6.0 million. If
approved, it is expected to be paid on 13 July 2023 to shareholders
who are on the register of members at the close of business on 9
June 2023.
9. Earnings per ordinary share
(a) Weighted average number of shares 2023 2022
53 weeks 52 weeks
Number Number
---------------------------------------------------- ---------- ----------
Basic weighted average number of ordinary shares
in issue 58,483,336 58,476,259
Dilutive potential ordinary shares from outstanding
employee share options 51,928 30,877
---------------------------------------------------- ---------- ----------
Diluted weighted average number of shares 58,535,264 58,507,136
---------------------------------------------------- ---------- ----------
(b) Earnings attributable to the shareholders
of the parent company
GBPm GBPm
---------------------------------------------------- ---------- ----------
Profit for the period 29.7 34.4
Adjusting items 9.0 (9.3)
Tax attributable to above adjustments (1.1) 7.8
Adjusted earnings after tax 37.6 32.9
---------------------------------------------------- ---------- ----------
Basic earnings per share
Pence Pence
---------------------------------------------------- ---------- ----------
Basic 50.78 58.83
Effect of adjusting items 13.51 (2.57)
---------------------------------------------------- ---------- ----------
Adjusted basic earnings per share 64.29 56.26
---------------------------------------------------- ---------- ----------
Diluted earnings per share
Pence Pence
---------------------------------------------------- ---------- ----------
Diluted 50.74 58.80
Effect of adjusting items 13.49 (2.57)
---------------------------------------------------- ---------- ----------
Adjusted diluted earnings per share 64.23 56.23
---------------------------------------------------- ---------- ----------
(c) Earnings from continuing operations
GBPm GBPm
---------------------------------------------------- ---------- ----------
Profit for the period 29.7 24.9
Adjusting items 9.0 (0.3)
Tax attributable to above adjustments (1.1) 7.5
Adjusted earnings after tax 37.6 32.1
---------------------------------------------------- ---------- ----------
Basic earnings per share
Pence Pence
---------------------------------------------------- ---------- ----------
Basic 50.78 42.58
Effect of adjusting items 13.51 12.31
---------------------------------------------------- ---------- ----------
Adjusted basic earnings per share 64.29 54.89
---------------------------------------------------- ---------- ----------
Diluted earnings per share
Pence Pence
---------------------------------------------------- ---------- ----------
Diluted 50.74 42.56
Effect of adjusting items 13.49 12.31
---------------------------------------------------- ---------- ----------
Adjusted diluted earnings per share 64.23 54.87
---------------------------------------------------- ---------- ----------
The basic earnings per share figure is calculated by dividing
the net profit 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 51,928 (2022: 30,877) dilutive potential
shares under the SAYE and LTIP schemes.
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.
10. Property and equipment
Group Company
---------------------------- ----------------------------
Fixtures, Fixtures,
Land fittings Land fittings
& & & &
buildings equipment Total buildings equipment Total
Cost or valuation GBPm GBPm GBPm GBPm GBPm GBPm
----------------------------------- --------- --------- ------ --------- --------- ------
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(1) (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(2)
- 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
Additions 9.5 30.7 40.2 9.5 30.7 40.2
Business combinations 15.8 2.4 18.2 15.8 2.4 18.2
Disposals (6.1) (0.7) (6.8) (6.1) (0.7) (6.8)
Fully depreciated assets (0.2) (24.2) (24.4) (0.2) (24.2) (24.4)
Revaluation(2)
- upward movement in valuation 37.7 - 37.7 37.7 - 37.7
- downward movement in valuation (22.2) - (22.2) (21.9) - (21.9)
----------------------------------- --------- --------- ------ --------- --------- ------
At 3 April 2023 784.1 162.2 946.3 784.1 156.1 940.2
----------------------------------- --------- --------- ------ --------- --------- ------
Depreciation and impairment
----------------------------------- --------- --------- ------ --------- --------- ------
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(1) (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(2)
- 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
Depreciation charge 1.7 24.5 26.2 1.6 24.4 26.0
Disposals (0.5) (0.4) (0.9) (0.5) (0.4) (0.9)
Fully depreciated assets (0.2) (24.2) (24.4) (0.2) (24.2) (24.4)
Revaluation(2)
- upward movement in valuation (4.8) - (4.8) (4.8) - (4.8)
- downward movement in valuation 12.1 - 12.1 12.1 - 12.1
----------------------------------- --------- --------- ------ --------- --------- ------
At 3 April 2023 28.0 75.8 103.8 27.3 74.4 101.7
----------------------------------- --------- --------- ------ --------- --------- ------
Net book value
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
----------------------------------- --------- --------- ------ --------- --------- ------
At 3 April 2023 756.1 86.4 842.5 756.8 81.7 838.5
----------------------------------- --------- --------- ------ --------- --------- ------
(1) During the prior period, the majority of the disposals
related to the sale of 56 tenanted pubs.
(2) The group's net book value uplift during the period was
GBP8.2 million (2022: GBP29.5 million). This uplift was recognised
either in the revaluation reserve or the income statement, as
appropriate.
The impact of the property revaluation exercise was as
follows:
Group Company
------------------ ------------------
2023 2022 2023 2022
53 weeks 52 weeks 53 weeks 52 weeks
GBPm GBPm GBPm GBPm
--------------------------------------- -------- -------- -------- --------
Income statement
Revaluation loss charged as impairment (11.8) (4.7) (11.8) (4.7)
Reversal of past impairment 4.8 5.5 4.8 5.5
--------------------------------------- -------- -------- -------- --------
Net (impairment)/uplift recognised
in the income statement (7.0) 0.8 (7.0) 0.8
--------------------------------------- -------- -------- -------- --------
Revaluation reserve
Unrealised revaluation surplus 37.4 39.5 37.4 39.5
Reversal of past surplus (22.2) (10.8) (21.9) (10.8)
--------------------------------------- -------- -------- -------- --------
Net uplift recognised
in the revaluation reserve 15.2 28.7 15.5 28.7
--------------------------------------- -------- -------- -------- --------
Net revaluation increase
in property 8.2 29.5 8.5 29.5
--------------------------------------- -------- -------- -------- --------
11. 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
--------------------------------- ---------------------------------
Motor Other Motor Other
Property vehicles assets Total Property vehicles assets Total
GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
---------------------- -------- -------- ------ ----- -------- -------- ------ -----
At 29 March 2021 157.8 0.2 - 158.0 148.9 0.3 - 149.2
---------------------- -------- -------- ------ ----- -------- -------- ------ -----
Additions 0.8 0.2 - 1.0 0.8 0.2 - 1.0
Business combinations 0.2 - - 0.2 0.2 - - 0.2
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)
---------------------- -------- -------- ------ ----- -------- -------- ------ -----
At 28 March 2022 146.8 0.2 - 147.0 139.0 0.4 - 139.4
---------------------- -------- -------- ------ ----- -------- -------- ------ -----
Additions - 0.4 - 0.4 - 0.4 - 0.4
Lease amendments 2.4 - - 2.4 2.0 - - 2.0
Depreciation (6.7) (0.2) - (6.9) (5.8) (0.2) - (6.0)
---------------------- -------- -------- ------ ----- -------- -------- ------ -----
At 3 April 2023 142.5 0.4 - 142.9 135.2 0.6 - 135.8
---------------------- -------- -------- ------ ----- -------- -------- ------ -----
12. Retirement benefit schemes
Movement within the schemes in
the period
Changes in the present value of the schemes are as follows:
Group and Company
-----------------------------------------------
2023 2022
Health Health
Pension care Pension care
scheme scheme Total scheme scheme Total
GBPm GBPm GBPm GBPm GBPm GBPm
------------------------------ ------- ------ ------ ------- ------ -----
Opening surplus/(deficit) 14.3 (2.1) 12.2 (2.2) (3.9) (6.1)
Current service cost (0.3) - (0.3) (0.4) - (0.4)
Contributions 1.4 0.2 1.6 1.4 0.2 1.6
Other finance income/(charge) 0.4 (0.1) 0.3 - (0.1) (0.1)
Remeasurement through other
comprehensive income (10.4) 0.3 (10.1) 15.5 1.7 17.2
Closing surplus/(deficit) 5.4 (1.7) 3.7 14.3 (2.1) 12.2
------------------------------ ------- ------ ------ ------- ------ -----
13. Lease liabilities
Set out below are the carrying amounts of lease liabilities and
the movements during the period:
Group Company
GBPm GBPm
----------------------- ----- -------
At 29 March 2021 80.2 73.2
----------------------- ----- -------
Additions 1.0 1.0
Business combinations 0.2 0.2
Lease amendments 0.1 0.3
Accretions of interest 2.5 2.3
Payments (6.6) (5.9)
Lease disposals (3.4) (3.4)
----------------------- ----- -------
At 28 March 2022 74.0 67.7
----------------------- ----- -------
Current 4.9 4.1
Non-current 69.1 63.6
----------------------- ----- -------
Additions 0.4 0.4
Lease amendments 2.4 2.0
Accretions of interest 2.5 2.4
Payments (7.6) (6.6)
----------------------- ----- -------
At 3 April 2023 71.7 65.9
----------------------- ----- -------
Current 4.8 4.0
Non-current 66.9 61.9
----------------------- ----- -------
14. Net cash generated from operations and analysis of net
debt
Group Company
------------------ ------------------
2023 2022 2023 2022
53 weeks 52 weeks 53 weeks 52 weeks
GBPm GBPm GBPm GBPm
----------------------------------------------- -------- -------- -------- --------
Profit before tax from continuing operations 36.2 42.1 38.2 42.0
Profit before tax from discontinued operations - 9.8 - 9.8
----------------------------------------------- -------- -------- -------- --------
Profit before tax 36.2 51.9 38.2 51.8
----------------------------------------------- -------- -------- -------- --------
Net finance cost 7.5 9.5 7.3 9.6
Finance charge for pension obligations (0.3) 0.1 (0.3) 0.1
----------------------------------------------- -------- -------- -------- --------
Operating profit 43.4 61.5 45.2 61.5
Depreciation of property and equipment (note
10) 26.2 24.4 26.0 24.2
Depreciation of right-of-use assets (note
11) 6.9 7.1 6.0 6.1
Movement on revaluation of properties (note
10) 7.0 (0.8) 7.0 (0.8)
Net profit on disposal of property - (11.4) - (11.4)
Difference between pension service cost
and cash contributions paid (1.3) (1.2) (1.3) (1.2)
Share based payments (0.5) (0.1) (0.5) (0.1)
Movements in working capital
- Inventories (0.7) (2.0) (0.7) (2.0)
- Receivables (0.6) 1.5 0.2 1.6
- Payables 3.4 28.0 0.7 28.4
----------------------------------------------- -------- -------- -------- --------
Net cash generated from operations 83.8 107.0 82.6 106.3
----------------------------------------------- -------- -------- -------- --------
Analysis of net debt Group Company
---------------- ----------------
2023 2022 2023 2022
GBPm GBPm GBPm GBPm
---------------------------- ------- ------- ------- -------
Cash 10.7 34.0 10.7 34.0
Current borrowings and loan
capital - (30.0) - (30.0)
Current lease liability (4.8) (4.9) (4.0) (4.1)
Non-current borrowings and
loan capital (104.2) (103.8) (104.2) (103.8)
Non-current lease liability (66.9) (69.1) (61.9) (63.6)
---------------------------- ------- ------- ------- -------
Net debt (165.2) (173.8) (159.4) (167.5)
---------------------------- ------- ------- ------- -------
15. Post balance sheet events
There were two post balance sheet events: the exchange of
contracts and completion of the Stag (Belsize Park) for a total
cash consideration of GBP3.3 million, and the final extension of
the GBP50.0 million syndicated facility with NatWest and HSBC by a
further year (the second year of a two-year option to extend) to 19
May 2027.
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END
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