Young & Co.'s Brewery (LSE:YNGA) reported record first-half profit on Thursday, with adjusted profit before tax up 19.3% to £37.1 million for the 26 weeks to 28 September, as the London and South East-focused pub operator benefited from a hot summer and the FIFA World Cup.
Total revenue rose 10.4% to £291.1 million, with like-for-like sales up 6.4% against what the company called a strong prior-year comparator, accelerating to 7.9% in the final 13 weeks of the period.
Adjusted operating profit climbed 14.7% to £46.7 million, lifting the adjusted operating margin to 16.0% from 15.4%, while adjusted earnings per share grew 35.7% to 48.30p, helped by the ongoing share buyback programme.
On a statutory basis, profit before tax rose 9.2% to £33.4 million, with adjusted figures excluding £3.7 million of non-underlying items covering Main Market admission fees, restructuring costs, property disposal losses and Cubitt House acquisition costs.
Pubs with gardens or riverside locations led the gains, with like-for-like sales up 7.5%, while England's World Cup matches delivered an estimated £4.8 million of additional sales and the five-week tournament added around £6.8 million in total like-for-like sales.
The acquisition of the Cubitt House estate, nine premium London pubs completed on 22 April, is now fully integrated, with eight sites operational and a ninth, the Duke of Connaught in Belgravia, still under development; the group said the business "contributed immediately" to performance.
"Boosted by excellent trading across the summer months, supported by record weather and the FIFA World Cup, Young's has delivered another period of outstanding performance," said chief executive Simon Dodd.
The group invested £45.2 million in the period, including £29.1 million on Cubitt House and £16.1 million across its existing estate, while disposing of five non-core pubs for £6.1 million.
Net debt before lease liabilities stood at £225.9 million at the period end, up from £221.8 million a year earlier, with net debt to adjusted EBITDA held at 2.0 times on the same pre-IFRS 16 basis.
Including lease liabilities, net debt was £321.6 million, against a ratio of 2.6 times adjusted EBITDA.
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The board declared an interim dividend of 12.22p per share, unchanged on last year, as part of a shift toward a one-third interim, two-thirds final split following the company's move to the Main Market; the dividend will be held at this level until that ratio is reached, with payment expected on 4 December.
A new £10 million share buyback programme began in July, continuing the capital return policy that saw 975,027 shares repurchased for £6.1 million in the last financial year.
Young's shares joined the FTSE 250 index on 9 October, following the group's transfer from AIM to the Main Market earlier in the year.
Trading has continued into the second half, with total sales up 10.0% and like-for-like sales up 5.1% in the six weeks since the period end, and Christmas bookings running 11% ahead of last year.
The board said it expects full-year performance to be in line with recently upgraded market expectations, citing the strength of the first half, the Cubitt House contribution and early Christmas trading.