Home Money Young says Reeves’ budget will cost the group an extra £11m a year

Young says Reeves’ budget will cost the group an extra £11m a year

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Additional costs: Young's policies introduced in the autumn budget will cost the company an extra £11m a year.
  • Young’s sold 850,000 pints during seven England Euro football matches

The boss of Young’s & Co Brewery claims policies introduced by Rachel Reeves in the autumn budget will cost the company an extra £11m a year.

More than 200 hospitality businesses have signed a letter to the Chancellor warning that increases in employers’ national insurance contributions and the minimum wage will lead to closures, job losses and weaker investment.

Simon Dodd, the group’s chief executive, said on Thursday that the budget would lead to a “significant increase in costs for our industry” but Young’s would seek to “mitigate these headwinds” while limiting costs passed on to customers.

Additional costs: Young’s policies introduced in the autumn budget will cost the company an extra £11m a year.

He said: “We will work to see how we can mitigate these headwinds without passing the entire cost onto our loyal customers.”

“We would like to see certainty and the implementation of real business rates reform that benefits all hospitality businesses.”

Young’s added that it plans to focus on strengthening the use of technology and internal investment.

Young’s revenue soared 27.2 per cent to £250m in the 26 weeks to September 30.

The London-listed company increased its interim dividend to 11.53 pence per share, an increase of 6 per cent on the previous year.

Young’s adjusted EDITDA rose 23.2 per cent to £59m, while its operating profit rose from £7.1m to £38.1m.

The group said its profit rise was driven by an “industry-leading margin of 15.2 per cent”.

Pint frenzy: Young's pubs sold 850,000 pints during seven England Euro football matches

Pint frenzy: Young’s pubs sold 850,000 pints during seven England Euro football matches

The European Football Championship also boosted sales, with pubs performing “exceptionally well” on match days, Young’s said. During seven England matches during the Euros, Young’s pubs sold 850,000 pints.

Dodd said: “We have achieved a lot as a business in the last six months, which is reflected in another strong set of results.”

‘The integration of City Pub Group has gone well, the pub teams have been welcomed into the Young’s family and all operational control has been brought together under one leadership team.

‘Our teams have done a fantastic job and I look forward to seeing our pubs prosper together.

“Given the quality of our equity and ongoing strategy, we remain confident in our ability to achieve long-term growth, including achieving planned synergies from the acquisition of City Pub Group.”

young man’s actions rose 1.31 per cent or 12.00 pence to 928.00 pence on Thursday, having fallen around 14 per cent in the last year.

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