AIM-listed pub group Young & Co’s (YNGA) reported strong sales growth over the Christmas period as punters celebrated in style. Like-for-like revenue in the three weeks to 5 January was up 11.2% despite a tough prior-year comparative.
| Share price: 817p (+0.6%) | PE: 13.1x |
| Market cap: £502m | Yield: 3% |
DOUBLE DIGIT GROWTH
Young’s said trading over Christmas Eve, Christmas Day and Boxing Day was ‘particularly good’ with LFL revenue up 12.3%. Its City Pub estate performed even better with LFL revenue up 26% over Christmas and Boxing Day.
Total managed revenue for the 14 weeks to 5 January was up 5.7% on a LFL basis. That was slightly ahead of the 5.4% LFL growth rate for the year to date.
Chief executive Simon Dodd said he was ‘delighted with the outstanding trading performance over the festive period’. He also said Young’s was ‘well-positioned’ to withstand the well-publicised headwinds facing the sector.
MOVING TO THE MAIN MARKET
Young’s also announced it was applying to the FCA (Financial Conduct Authority) to switch its listing to the main market. If successful, the company’s shares will be delisted from AIM and listed on the main market some time in Q2.
The board believes shifting to the main market will ‘enhance the company’s corporate profile and appeal’. It also hopes a main market listing will attract a broader investment base both inside and outside the UK.
Young’s has set the standard for Christmas trading, hitting daily and weekly sales records. A big part of its appeal is its premium estate, with pubs set in desirable locations rather than ‘local boozers’.
As the firm says it has grown considerably in size and performance in recent years compared with when it joined AIM. Moving to the main market is the natural next step and opens the door to a wider investor base.
Read the press release here: https://www.youngs.co.uk/investors
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