TIDMYNGA
RNS Number : 2158Z
Young & Co's Brewery PLC
20 May 2021
Young & Co.'s Brewery, P.L.C.
Preliminary results for the 52 weeks ended 29 March 2021
well-positioned for recovery and long-term growth
2021 2020
GBPm GBPm
Revenue 90.6 311.6
Adjusted operating (loss) / profit(1) (34.0) 46.5
Adjusted (loss) / profit before tax(1) (44.1) 37.7
Adjusted EBITDA(1) (0.3) 79.6
Net debt (248.7) (280.4)
----------------------------------------------- --------- ---------
Operating (loss) / profit (35.1) 37.9
(Loss) / profit before tax (45.2) 29.1
----------------------------------------------- --------- ---------
Net assets 645.4 590.8
Net cash generated from operations (23.0) 72.5
Adjusted basic (loss) / earnings per share(1) (66.63p) 60.18p
Basic (loss) / earnings per share (68.23p) 39.37p
Dividend per share - 10.57p
(interim and recommended final)
Net assets per share(2) GBP11.04 GBP12.05
All the results above are from continuing operations.
(1) Reference to an "adjusted" item means that item has been
adjusted to exclude non-underlying costs (see notes 4 and 5).
(2) Net assets per share are the group's net assets divided
by the shares in issue at the period end.
KEY POINTS FROM AN UNUSUAL YEAR
The results for the year and the actions taken to maintain the
group's historically strong financial position reflect the
significant impact of covid-19 restrictions that were in place for
the majority of the year and the closure of our pubs and hotels for
almost nine months:
-- Significant action taken to preserve the group's historically
strong financial position and retain flexibility to invest in the
future growth of Young's:
o Secured additional financing of GBP88.4 million gross proceeds
through an equity issue and GBP20.0 million through a new bank
facility
o Agreement with our lenders to replace existing covenant tests
with a GBP25.0 million monthly available liquidity test through to
31 March 2022
o Debt at year-end (excluding lease liabilities and arrangement
fees) of GBP170.1 million, headroom of GBP114.9 million on our
committed debt facilities
-- Total investment of GBP17.0 million to enhance our managed estate, including:
o Upgrades to our outdoor trading spaces
o Adding boutique rooms and transforming bar and restaurant
spaces
o Relaunching our Burger Shack brand and rolling out an
additional 10 new Burger Shacks
o Opening two new pubs: Enderby House in Greenwich and Alban's
Well in St Albans
-- Total group revenue of GBP90.6 million, approximately 30% of the previous year:
o Managed house revenue of GBP87.0 million, with an adjusted
operating loss of GBP18.6 million
o Ram Pub Company revenue of GBP3.3million, with an adjusted
operating loss of GBP0.7 million
-- The timing of our financial year means that we absorbed most of the impact from covid-19
in one year
-- In light of this year's disruption to our business amongst
other things, the board concluded that it was not appropriate to
recommend payment of a final dividend. The board is very mindful of
the importance of dividends to Young's shareholders and intends to
resume dividend payments as soon as is appropriate, although no
decision has been made when that will be
-- Outdoor trading in the 144 pubs that we were able to open on
12 April has been encouraging, achieving 85% of normal trade over a
5-week period and we are pleased to have opened all our remaining
pubs this week
Patrick Dardis, Chief Executive of Young's, commented:
"We were able to navigate our way through the pandemic, despite
the last financial year being one of the most challenging in our
189-year history. I am extremely proud of the way our teams have
reacted to the extraordinary challenges that we have faced. The
absolute professionalism of our pub managers and their teams has
enhanced our reputation as a highly responsible pub operator and
underlined the exceptional quality of the Young's business."
"Despite the many lockdowns and disruption to our business, the
financing decisions taken during the summer allowed us to continue
to make significant investments in our pubs, with some truly
transformational projects. We expect to see excellent growth from
that investment this year and beyond."
"We are confident with the steps we have taken to ensure Young's
continues to be in a position of strength and there is potential
for a strong recovery this summer. April has started better than
planned, with future bookings also looking strong. With this in
mind, the board expects the business to get back to pre-covid-19
levels of trade and margins by the end of June, assuming the
roadmap, and in particular the 21 June 'freedom day', is not
compromised."
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/ Alistair de Kare-Silver/Robert
Collett-Creedy
PRELIMINARY RESULTS FOR THE 52 WEEKSED 29 maRCH 2021
chief EXECUTIVE'S STATEMENT
The last financial year has been one of the toughest we have
ever endured; our wonderful pubs spent many more days with their
doors closed to our customers than open. Talk of like-for-like
sales and new pub openings took a backseat, replaced by national
lockdowns, trading restrictions and curfews. Despite this, there is
now a real sense of excitement and anticipation for the year to
come. With all our pubs having reopened, albeit subject to
operational restrictions for now, we are focussed on a strong
recovery.
The impact of covid-19 on our financial results has
understandably been significant. With only just under four months
of trading possible, total group revenue was down by 70.9% to
GBP90.6 million, resulting in an operating loss of GBP35.1 million.
Once adjusted for non-underlying items, the operating loss was
GBP34.0 million.
I am incredibly proud of the Young's team, for all their hard
work and the way they handled the challenges thrown at them over
the course of the year. Our operators and support teams went
through the immense task of closing and then reopening our pubs for
three national lockdowns. During the enforced periods of closure,
we were busy behind the scenes reviewing our cost base, investing
in the estate and streamlining the business so that we returned
stronger and can look forward with confidence.
SECURED LONG-TERM FUTURE
Faced with a global pandemic and our pubs closed for the first
time in my lifetime, we moved quickly last summer to strengthen our
capital position. Longer term, we refinanced the GBP50.0 million
term loan that was due to expire in March 2021, replacing it with a
five-year facility that takes us up to 2025. This facility also has
two one-year extension options that could take it out to 2027.
Short-term, we accessed GBP30.0 million from the Bank of England
under the Covid Corporate Financing Facility ("CCFF"), which was
paid back in full on 13 May, and we secured a further GBP20.0
million revolving credit facility.
With one eye on the future, we then raised gross proceeds of
GBP88.4 million through an equity issue of new shares in June. This
allowed us to restart our investment programme, and it provided
vital funding ahead of what turned out to be another lengthy period
in lockdown.
SUPPORTING OUR TEAMS, TENANTS AND CUSTOMERS
Securing our long-term future and success also means creating
value for all our stakeholders, ensuring that they are a key
consideration in our decision making process. We were pleased to
provide extensive support to a number of our stakeholders during
the pandemic, particularly all our fantastic teams. Going forwards,
the group intends to set out an ESG strategy outlining the material
risks and opportunities for Young's and how we can play a positive
role in the communities in which we operate. We believe that
embracing this approach will contribute to the long-term success of
our business.
For our managers and their teams in the pubs it has been a
difficult period. The majority of time has been spent away from
their businesses on furlough, but they have been fantastic in
rising to the challenges thrown at them. Maintaining contact with
our teams during these extended periods away from the business on
furlough has been vitally important. We used various social media
platforms and our 'Keeping in touch' Facebook group to provide our
teams with regular updates on what has been going on at Young's,
with video content from heads of department and myself. Training
sessions have also taken place online for teams to keep their
skills up to date.
Going all the way back to last spring, many of our teams
immersed themselves fully to help support those in their local
communities most in need, through providing meals to frontline
healthcare workers, donating food supplies or giving up their time
to help nearby food banks.
We were one of the first pub companies to confirm support for
their tenants with rent holidays, as opposed to just rent
deferrals, meaning they were rent free without the worry of having
to pay this back in the future.
Our customers are really important to us and their loyalty has
never wavered. They flocked back initially after we reopened all
our pubs on 20 July, which was followed by the success of "Eat Out
to Help Out" where sales were in growth on the prior year. Despite
the ever-changing restrictions that we faced, sales often reached
90% of the prior year up until the second lockdown in November.
This gives us great confidence in our proposition and the potential
for strong trading once all covid-19 operating restrictions are
lifted.
CONTINUED INVESTMENT IN OUR PUB ESTATE
We pride ourselves on operating a differentiated, premium and
well-invested pub estate. Even in the desperately hard times we
have found ourselves in recently, it has been important to continue
the investment in our managed pubs, made possible by the financing
decisions taken during the summer. Once the first lockdown was
lifted in July, we were immediately back on site at three projects
that had been stopped in their tracks - the Green Man (Putney),
Seagate Hotel (Appledore) and the City Gate (Exeter) - to ensure
all were completed in time to capitalise on the summer trade.
After the summer, we resumed our capex programme with schemes at
the Duke of Cambridge (Battersea), Duke on the Green (Fulham) and
the Duke of Wellington (Notting Hill), bringing these fine
traditional pubs back to the highest of Young's premium standards.
In March this year, we also invested in one of our most iconic
pubs, transforming the bar and dining areas at the Windmill
(Clapham), and added a further 87 covers at our City of London
favourite, the Oyster Shed (Bank); both completed in time for the
reopening on 12 April. Ahead of another busy staycation summer, we
have continued to invest in our hotels. Creating 11 stylish
boutique bedrooms at the Canford (Poole), investing in a further 10
boutique bedrooms at the Park (Teddington) and transforming the bar
and restaurant areas at the Bear (Esher), we are ready to
capitalise on what will hopefully be a bumper British summer.
More important than ever, this year has seen the value of
desirable outside trading space that can be used throughout the
year and not just during the summer months. Ahead of autumn, we
invested GBP1.1 million in adding huts, stunning stretch tents and
heaters in many more of our pubs, creating an environment that
people could really enjoy, and for some customers the excitement of
discovering our amazing gardens for the very first time. Further,
whilst dining outside, our customers will now be able to order from
our rejuvenated Burger Shacks. After breathing new life into the
brand, we have launched a new menu with greater variety and unique
'Shack Session' beers.
Understandably it has been quiet on the acquisition front and we
ended the period with 273 pubs (2020: 276). On reopening this
April, we launched in St Albans, a new territory for Young's, with
Alban's Well, and extended our presence in Greenwich through the
opening of Enderby House, an acquisition made in the previous year.
Both pubs have undergone significant investment and showcase the
finest essence of Young's, with premium bar and dining areas and
well thought out external trading space. I am particularly excited
to see how these additions to the managed estate perform over the
coming year. During the year, we also acquired a freehold property
in the Cotswolds village of Stow-on-the-Wold where we already have
the Bell Inn, a wonderful pub and hotel with 13 rooms. This
additional property will, subject to planning, enable us to add
further boutique bedrooms and car parking space in a highly
desirable, premium location.
During the year, three businesses transferred from our tenanted
division - the Spread Eagle (Wandsworth), Ship Inn (East Grinstead)
and the Royal Oak (Bethnal Green) - and all present fantastic
future growth potential following investment. We are already
on-site at the Spread Eagle, a freehold site, starting to build our
new head office, back in the heart of Wandsworth, ready to move
into during spring 2022.
BOARD CHANGES
In September, Torquil Sligo-Young retired as an Executive
Director, a role he held for 24 years. During this time, Torquil
held several roles but will be particularly remembered for his
great work developing our IT solutions. Happily, Torquil has
accepted our invitation to remain on the board as a Non-executive
Director. In January, Trish Corzine stepped down as a Non-executive
Director, having completed a second three-year term. She brought
with her a wide-ranging knowledge and experience of the hospitality
and leisure sector, having spent most of her career in the
restaurant industry. Further, Roger Lambert will be retiring as a
Non-executive Director at the end of July, shortly after this
year's AGM. Roger has been associated with Young's for many years,
initially as our corporate advisor with Cazenove and for the past
13 years as a Non-Executive Director; h is wise counsel has always
been hugely appreciated.
CURRENT TRADING AND OUTLOOK
On 12 April, we were pleased to open 144 of our pubs for the
much-anticipated reopening of the economy and phase two of the
Government's four step plan. The pent-up demand was evident weeks
in advance as bookings for our gardens, huts and newly created
external space flooded in. Over the first five weeks, we saw very
strong trading and achieved 85% of normal trade in those 144
pubs.
Our remaining pubs and hotels reopened this week, along with
thousands more pubs and restaurants that form the great hospitality
sector, ready for the next important step towards normality. The
key date for us is 'freedom day' on 21 June - the day that will
truly make a difference.
After the period end, we completed the freehold acquisition of
the Greenwich Union, a pub located adjacent to our Richard 1(st) .
In the short-term, this provides additional external trading space
for the summer months before we pursue a larger scheme to combine
the internal trading areas, subject to planning. We continue to
explore further acquisition opportunities that will enhance our
estate.
We noted yesterday's media speculation regarding our appointment
of Savills in connection with a possible sale of the tenanted
estate. We confirm that Savills has been appointed and that we are
in discussions regarding a possible sale. There can be no
certainty, however, that any sale will proceed. We will make
further announcements as appropriate.
There are many reasons to harbour optimism for the year ahead.
Following a period during which everyone has found their
opportunities for social interaction and celebration significantly
lacking, we know there is going to be a huge pent-up demand for
special events, whether it be big birthday bashes, weddings or
Christmas parties. People have missed these major life events in
which the pub plays a significant role, and we have missed hosting
them. We will also benefit from our exciting acquisitions from last
year, including the five pubs in and around southwest London and
Surrey that we purchased late in March 2020 and which have not yet
been able to trade fully for any real period of time. Additionally,
there are the recent major developments which have not yet had the
opportunity to perform such as the Dog and Fox (Wimbledon Village)
and the investments in all the Redcomb pubs. This gives us great
reason to look forward with optimism.
We are confident with the steps taken to ensure Young's
continues to be in a position of strength. April has started better
than planned, with future bookings also looking positive. There is
potential for a good recovery this summer and we believe that our
strategy of running a differentiated, premium and well-invested pub
estate will underpin the future success of Young's.
business and financial review
MANAGED HOUSES
In one of the most unique years in our 189-year history, we
began and ended the period with all our pubs closed to the public.
Over the course of the year, there were only 17 full weeks of trade
possible and for the majority of our managed houses they have
remained shut since Christmas. As a result, total managed revenue
is down by 70.9% to GBP87.0 million.
After the necessary closure of our pubs in late March, it was
not until 20 July, following a 16-week lockdown, when we decided to
reopen and trade all our 205 managed houses, setting the tone that
'Young's was open for business'. The delay allowed us to put in
place all the necessary covid-19 safety protocols without
compromising on the great Young's pub experience. Our managers had
the time to thoroughly retrain our returning teams, dust away any
cobwebs from the shuttered summer months and prepare our wonderful
pubs ready to welcome back our loyal customers.
After a slow start, customer confidence improved as the appetite
grew to show support for their local. In August, we benefitted from
the Government funded "Eat Out to Help Out" campaign, serving over
370,000 customers, which was a huge boost in driving footfall
through the early midweek days, with diners attracted by the
headline 50% discount. Food sales driven by the campaign traded
ahead of the prior year on a like-for-like basis as our head chefs
sought to entice customers to trade up with a wonderful selection
of premium dishes such as 'posh surf & turf', rack of Dorset
lamb and beef Wellington on offer to share. Supported by some
glorious summer weather, we were able to make the most of our
generous outdoor trading areas, and total sales for the month were
at approximately 90% of last year on a like-for-like basis.
From September, the Government introduced restrictions on group
numbers, required full table service and face coverings to be worn
by staff and customers, and imposed a 10pm curfew, all of which
negatively affected trading to approximately 80% of last year.
However, as the weather started to turn heading into October, the
introduction of Tier 2 status for London affected 80% of our
managed estate and limited the mixing of households inside our
pubs, forcing groups of friends to meet outdoors in order to
socialise. Our previous investment in external trading spaces with
fabulous gardens, unique huts and iconic themed tents was perfectly
placed to help provide an attractive environment for our customers.
Even with the heightened restrictions, the resilience and loyalty
of our customers remained strong and sales during October performed
ahead of our expectations at 73% of last year.
On 5 November, all our pubs closed, initially for a four-week
lockdown. Although they were allowed to reopen in December, trading
was short-lived as the pandemic worsened and more pubs entered the
Government's higher tier status which left them unable to stay
open. Unfortunately, there was no festive excitement and by the end
of the year all our pubs had closed and remained so for the rest of
the period.
The costs incurred when shutting down and reopening our pubs
cannot be underestimated. We faced staff costs as our teams
returned to their pubs days in advance of opening the doors,
unnecessary wastage of food and drink products unable to be sold or
reused, as well as the time of management to ensure the process ran
in an orderly fashion. Although we received support from the
Government and worked hard to streamline our business during the
first lockdown, it was the extensive periods of closure during the
year that solely contributed to an operating loss of GBP19.2
million. When excluding our adjusting items, we recognised an
adjusted operating loss of GBP18.6 million. Encouragingly, our
managed operating margin was 16.1% for the August to October
trading periods between the first two lockdowns.
INVESTMENT
We continue to place great value on the investment in our
premium pubs, and despite the impact of the pandemic we have
remained busy investing GBP17.0 million in our managed estate over
the course of the year.
In the first months of the period, we prioritised completing
projects that were paused in March, thus ensuring they were able to
open only a couple of weeks later than the rest of the estate. At
the Green Man (Putney), a full refurbishment which added more than
50 new covers proved to be a big success with locals, whilst the
investment in existing and new bedrooms at the Seagate Hotel
(Appledore), City Gate (Exeter) and the Bear Hotel (Esher)
increased our hotel room stock to 688, of which 356 are now
boutique.
Following a successful return to trading in the late summer, we
kick started the investment programme in our existing estate from
September with projects at the Duke of Cambridge (Battersea), Duke
of Wellington (Notting Hill) and the Duke on the Green (Fulham).
These much-loved pubs, at the heart of their local communities,
received a new lease of life as we restored traditional features in
their bar and dining areas.
Ahead of the winter period and in anticipation of further
prolonged periods of restrictions on internal trading and social
distancing, we accelerated our garden investment plans. We invested
GBP1.1 million adding huts, new stretch tents, furniture and
heaters. In order to capitalise on the short-term requirement for
additional external covers, we have been able to obtain temporary
licences and/or convert car parking space to increase capacity,
such as at the Oyster Shed (Bank) with an extra 120 covers along
the riverside, and the Northcote (Clapham) where the temporary
pedestrianisation of Northcote Road has been filled with tables
outside the pub and has been a huge success.
With all pubs closed in the final months and with one eye on
further potential growth opportunities for the coming year, we
kicked off additional pub investments in January. At the Windmill
Hotel (Clapham Common), internal bar and dining areas were
completely revamped, including a vibrant dining space and snug
lounge spaces creating cosy new seating areas. Whilst at the Oyster
Shed, a further 87 covers were created by extending the first-floor
mezzanine; this will come into its own when we head into autumn. In
total, we completed 16 major projects, including schemes at the
Bear (Esher), Cock Tavern (Fulham), Crooked Billet (Wimbledon
Common), Grange (Ealing), Park (Teddington) and the One Tun
(Fitzrovia).
It has been a quiet year for acquisitions, as we added just one
new pub, Alban's Well. The offer focusses on sharing plates and a
delicious range of drinks featuring morning coffees, craft beers
and signature cocktails - the perfect place for your all-day dining
experience. Following its acquisition last year, we also completed
one of our most stunning recent investments at Enderby House,
nestled on the Greenwich Peninsula. It boasts an array of floors
and feature rooms where you can choose between the ground floor pub
or the stunning terrace for perfect views over the Thames. Later in
the period, we completed the acquisition of a freehold building in
Stow-on-the-Wold, which, subject to planning, will add further
boutique bedrooms to the Bell Inn, a countryside getaway in the
Cotswolds.
During the period, we transferred three businesses from our
tenanted division. The Royal Oak (Bethnal Green) is an iconic pub
that has continued to trade since its transfer; it has featured on
the small and big screen, and is located just yards away from East
London's bustling Columbia Road Flower Market. The Spread Eagle
(Wandsworth) and the Ship Inn (East Grinstead) have been closed
pending planned investment in the coming year, with the Spread
Eagle forming part of an exciting new boutique hotel and company
head office development located in our heartland of Wandsworth.
Following our exit from the lease of the Surprise (Chelsea), we
ended the period with 210 managed houses (including 30 hotels), up
from 207 at the end of the same period last year.
Alongside the investment in our pubs, we are continually
upgrading our technology to improve our offer and productivity. Our
Young's On Tap app, which we began developing five years ago, was
further improved with added functionality allowing customers to
browse menus, order food and drinks to their table, and split pay
their bills. The covid-19 pandemic has accelerated changes in the
great British pub and the customer journey. Although previously
adopted at some pubs, customers are now greeted by a friendly host
upon arrival, shown to their table and asked to log personal
details for track and trace. To help reduce contact further, they
are also invited to download the updated Young's On Tap app which
allows customers to view our menus and order a Young's classic
burger, or a daily chef special alongside a post dinner cocktail,
all from their phones with delivery direct to their tables. Upon
reopening, the usage of the Young's On Tap app has increased,
accounting for more than 40% of sales and provided another level to
the premium pub experience. Our online reservation system has also
been vitally important in the post-pandemic world, improving
booking conversions and enabling us to maximise covers to help
offset the downside from social distancing requirements.
RAM PUB COMPANY
For our tenanted division, it has also been an extremely
challenging period, with trading opportunities severely impacted by
Government-imposed restrictions during the year. The closure of
pubs has directly impacted on the level of beer sales but also the
rental income as we have helped support our tenants through the
pandemic. As a result, total revenue was GBP3.3 million, down from
GBP12.1 million, resulting in an adjusted operating loss of GBP0.7
million, compared to an adjusted operating profit last year of
GBP4.3 million.
Back in the summer, we were one of the first pub companies to
confirm support for their tenants, with a rent holiday period
dating from 16 March until the point of reopening in early July.
Once restrictions were lifted, most businesses returned to
normalised rent levels, however a number required continued rent
concession support due to the limited personal contact permitted
inside hospitality venues and the lack of opportunities for wet led
pubs with limited external trading space. Following the second
lockdown in November, we supported the vast majority of our tenants
with another rent holiday period, this time running until the end
of the financial year. Unlike rent deferrals, this gave our tenants
rent-free periods without the worry of paying this back in the
future. As we work towards the full relaxation of restrictions this
spring, we will continue to support them.
Whilst all investment in the Ram Pub Company was put on hold
during the first lockdown, we were able to complete projects at the
Rising Sun (Epsom) and the Watermans Arms (Richmond). Even in these
unprecedented times, continued investment remains vitally important
to ensure our pubs are maintained to a high standard to attract and
retain the right tenants.
We continue to review our tenanted estate, exiting unfavourable
leases and divesting freehold properties where we feel the pub's
sustainability is in question. During the period, we exercised the
break clause on the lease of the Black Cat (Catford), decided not
to renew an expired lease at the Greyhound (Hendon) and sold the
freehold of the Horse Pond Inn (Castle Cary). During the period, we
transferred the Spread Eagle (Wandsworth), Royal Oak (Bethnal
Green) and Ship Inn (East Grinstead) to our managed houses,
reducing the Ram Pub Company to an estate of 63 pubs (2020:
69).
OTHER KEY AREAS
PROPERTY
Our balance sheet strength is underpinned by our predominately
freehold estate in many highly desirable locations. 228 of our 273
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 GBP773.7 million (2020: GBP771.1
million). The carrying value of property leases, including long
leaseholds, is separately recognised as right-of-use assets in note
10. 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. Again, this year we have had to consider the ongoing
implications of covid-19 following on from last year's initial
impact, combined with the reopening of the hospitality sector in
line with the Government's roadmap. Savills, an independent and
leading commercial property adviser, has revalued all our freehold
properties. The valuation method used several inputs of which the
sustainable level of trade of each pub was key.
In accordance with International Financial Reporting Standards,
individual increases in value have been reflected in the
revaluation reserve in 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.
Over the course of the last year there has been renewed optimism
in the pub property market, reflected by increased activity and
property prices at pre-covid-19 levels; as a result we have seen a
net upward revaluation movement of GBP10.8 million. This is
comprised of an upward movement of GBP9.0 million (2020: GBP9.3
million downward movement) reflected in the revaluation reserve and
an upward movement of GBP1.8 million (2020: GBP5.3 million downward
movement) recognised as an adjusting item in the income
statement.
GOING CONCERN AND BANKING ARRANGEMENTS
There is now a clear pathway to the reopening of the hospitality
sector. This, combined with the actions undertaken by Young's
during the period, provides the confidence that Young's has
sufficient liquidity to withstand any ongoing uncertainty that
covid-19 brings to our business during the going concern period to
June 2022, be that closure of pubs for an extended period, reduced
trading hours, partial closure or general market disruption.
We have modelled a broad range of forecasts, with our base model
assuming the continued reopening of our pubs and the further
lifting of restrictions aligned to the Government's roadmap. The
more severe scenarios include a slower build of trade in the summer
months, further long periods of forced closure and reduced trade
through key trading periods such as December.
Early on in the period we strengthened both our short-term and
long-term liquidity position. As regards the short-term, we
initially accessed liquidity available to us under HM Treasury and
the Bank of England's CCFF, issuing commercial paper with a nominal
value of GBP30.0 million, and a maturity date of 13 May 2021; this
has now been repaid in full, with no further funding under the CCFF
received. We also entered into a new GBP20.0 million revolving
credit facility with NatWest. We do not intend to draw on this
facility, but instead retain it as available liquidity to help us
meet the monthly liquidity test referred to below. This facility
had an original maturity date in May 2021, with two six-month
extension periods available; we have now taken the first six-month
extension, moving the facility to a maturity date in November 2021.
So far as the long-term is concerned, we entered into a new GBP50.0
million facility with NatWest and HSBC. This has an original
maturity date falling in May 2025. We had the option this year to
request an extension of the maturity date by a further year and to
do the same the following year; however, this process has been
moved to start next year given the current trading environment. We
drew down on this facility and repaid in full the original March
2021 GBP50.0 million facility with the RBS and Barclays. Finally,
in June 2020, the group also completed an equity issue raising
gross proceeds of GBP88.4 million in the period.
During the period, the group also considered the effects of its
then latest forecasts on its compliance with bank covenants, which
were due to be tested each quarter on a 12-month rolling basis. In
anticipation of breaches due to the impact of the pandemic, the
group agreed with its lenders in May 2020 that the financial
covenants would be replaced by a monthly available liquidity test.
These initial covenant waivers have now been extended until the
quarter ending March 2022. The waivers require the group to have
GBP25.0 million of available liquidity at each month end until the
quarter ending March 2022 and for total loan facilities not to
exceed GBP220.0 million during the waiver period. In addition, they
have waived any technical "cessation of business" breach of our
banking facilities as a result of our pubs being closed due to the
covid-19 pandemic through to the quarter ending June 2021.
In the base case forecast, there is significant headroom under
the revised monthly available liquidity test through to March 2022
and, when covenants revert to the group's original financial
covenants from March 2022 onwards, there would be significant
headroom and all covenants would be fully complied with through the
going concern period. However, under the more severe scenarios
where our pubs may be required to close again for prolonged periods
and trade might be suppressed at key times due to the
reintroduction of social distancing and/or other measures, the
group would still comply with revised covenants to March 2022, but
on reverting to the original financial covenants for the March 2022
and June 2022 quarter end tests, certain performance-based
covenants would risk being breached, therefore compliance with
financial covenants beyond 12 months from these financial
statements is a material uncertainty. The group remains in regular
dialogue with its lenders, and should such a scenario arise, the
group expects to be able to find a solution with them well in
advance of March 2022.
At 29 March 2021, the group had cash in bank of GBP4.7 million
and committed borrowing facilities of GBP285.0 million, of which
GBP174.8 million was drawn down. The group expects, by the end of
June 2022, to have available facilities of GBP235.0 million; it has
already repaid the GBP30.0 million due under the CCFF and is not
anticipating continuing with the GBP20.0 million RCF with NatWest
beyond November 2021. In addition to these facilities, the group
has a GBP10.0 million overdraft with HSBC, which is not
committed.
RETIREMENT BENEFITS
We have a defined benefit pension scheme which has been closed
to new entrants since 2003. During the course of the year our
pension deficit has decreased by GBP2.1 million to GBP6.1 million.
Compared with last year, the rate of inflation has increased
considerably from 2.8% to 3.3% which has heavily contributed to an
GBP18.1 million increase in liabilities. However, this has been
offset by a GBP19.0 million increase in the return on scheme's
assets. 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 GBP1.1 million in the period, the
majority of which relate to the estate management of our
properties. This includes the net upward movement in property
revaluation of GBP1.8 million, as mentioned previously, and tenant
compensation cost of GBP0.5 million, where we agreed to terminate
the lease agreements early at the Royal Oak (Bethnal Green), which
transferred from the Ram Pub Company last July, and in respect of
an unlicensed property which will form part of the new head office
development at the rear of the Spread Eagle (Wandsworth).
Following the acquisition of five pubs in March 2020, the
transfer of the business and assets of Spring Pub Company Limited
in September 2020 incurred a cost of GBP1.4 million related to
property taxes and associated professional and legal fees. This
cost, foreseen at the time of acquisition, did not crystalise until
the transfer was completed.
During the period, the loss on disposal of properties was GBP0.5
million as we exited two leases forming part of the Ram Pub Company
- the Black Cat (Catford) and the Greyhound (Hendon) - and one
lease in the managed business, the Surprise (Chelsea). The Horse
Pond Inn (Castle Cary), a freehold pub in the Ram Pub Company, was
sold for GBP0.4 million.
The remaining GBP0.5 million in adjusting items relates to costs
incurred in response to covid-19 following a restructuring process
of our head office function and is largely made up of severance
costs.
TAX
A tax credit of GBP6.9 million was recognised for the year,
principally due to the losses incurred. The effective tax rate was
a negative 15.2% (2020: positive 33.6%) compared to the statutory
rate of 19%, with the difference primarily driven by expenses not
deductible for tax purposes. Further detail can be found in note
6.
The group's tax strategy for the accounting period ended 29
March 2021 has been published on the Young's website in accordance
with recent 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. The covid-19 pandemic has had a
significant impact on the business; however we now have the
Government's roadmap to reopening the hospitality sector, and this
should enable us, once again, to deliver strong performances from
our existing estate and our premium developments, focussing on both
immediate and maintainable gains.
In view of the extensive period of closure of our pubs during
the period and the expected lower levels of trade during the first
three months of the current period, the Company will not be paying
any dividend for the most recent period. The board is very mindful
of the importance of dividends to Young's shareholders and intends
resuming dividend payments as soon as is appropriate, although no
decision has been made when that will be. We have, however, agreed
with NatWest and the holders of the senior secured notes that any
dividend payments during FY2021/22 will not exceed GBP5.0 million
in aggregate, but there is no restriction on the Company
recommending a final dividend with its results for FY2021/22,
payable in the following financial year, as normal.
Following the losses incurred in the year, our adjusted loss per
share was at 66.63 pence per share, compared to an adjusted
earnings per share of 60.18 pence in the prior period. On an
unadjusted basis, the loss per share increased to 68.23 pence.
Patrick Dardis
Chief Executive
19 May 2021
GROUP INCOME STATEMENT
For the 52 weeks ended 29 March 2021
2021 2020
Notes GBPm GBPm
---------------------------------------- ----- ------- -------
Revenue 90.6 311.6
Other income 4.7 -
Operating costs before adjusting items (129.3) (265.1)
---------------------------------------- ----- ------- -------
Adjusted operating (loss)/profit (34.0) 46.5
Adjusting items 4 (1.1) (8.6)
---------------------------------------- ----- ------- -------
Operating (loss)/profit (35.1) 37.9
Finance costs (9.9) (8.6)
Finance charge for pension obligations (0.2) (0.2)
---------------------------------------- ----- ------- -------
(Loss)/profit before tax (45.2) 29.1
Income tax credit/(expense) 6 6.9 (9.8)
---------------------------------------- ----- ------- -------
(Loss)/profit for the period attributable to
shareholders of the parent company (38.3) 19.3
----------------------------------------------- ------- -------
Pence Pence
-------------------- --- ------------------ -----
(Loss)/earnings per 12.5p ordinary share
Basic 8 (68.23) 39.37
Diluted 8 (68.23) 39.35
-------------------- --- ------------------ -----
All the results above are from continuing operations.
GROUP STATEMENT OF COMPREHENSIVE INCOME
For the 52 weeks ended 29 March 2021
2021 2020
Notes GBPm GBPm
-------------------------------------------------- ----- ------ ------
(Loss)/profit for the period (38.3) 19.3
-------------------------------------------------- ----- ------ ------
Other comprehensive income
Items that will not be reclassified subsequently to
profit or loss:
Unrealised gain/(loss) on revaluation of
property 9 9.0 (9.3)
Remeasurement of retirement benefit schemes 11 0.9 (0.7)
Tax on above components of other comprehensive
income (4.0) (3.1)
Items that will be reclassified subsequently to profit
or loss:
Fair value movement of interest rate swaps 2.5 0.4
Tax on fair value movement of interest rate
swaps (0.5) -
-------------------------------------------------- ----- ------ ------
7.9 (12.7)
-------------------------------------------------- ----- ------ ------
Total comprehensive (loss)/income attributable
to shareholders of the parent company (30.4) 6.6
-------------------------------------------------- ----- ------ ------
All the results above are from continuing operations.
BALANCE SHEETS
At 29 March 2021
Group Company
---------------- ----------------
2021 2020 2021 2020
Notes GBPm GBPm GBPm GBPm
--------------------------------- ----- ------- ------- ------- -------
Non-current assets
Goodwill 32.5 32.5 31.0 27.7
Property and equipment 9 773.7 771.1 769.1 751.5
Right-of-use assets 10 158.0 163.4 149.2 136.9
Investment in subsidiaries - - 14.3 34.4
Deferred tax assets 8.6 8.3 8.6 8.3
--------------------------------- ----- ------- ------- ------- -------
972.8 975.3 972.2 958.8
--------------------------------- ----- ------- ------- ------- -------
Current assets
Inventories 2.6 3.3 2.6 3.2
Trade and other receivables 10.4 9.3 11.3 9.9
Income tax receivable 5.8 0.1 6.0 -
Cash 4.7 1.1 4.7 1.1
--------------------------------- ----- ------- ------- ------- -------
23.5 13.8 24.6 14.2
--------------------------------- ----- ------- ------- ------- -------
Asset held for sale 1.2 0.5 1.2 0.5
--------------------------------- ----- ------- ------- ------- -------
Total assets 997.5 989.6 998.0 973.5
--------------------------------- ----- ------- ------- ------- -------
Current liabilities
Borrowings (29.8) (50.0) (29.8) (50.0)
Lease liabilities 12 (4.9) (5.3) (4.1) (5.0)
Derivative financial instruments (1.8) (2.4) (1.8) (2.4)
Trade and other payables (15.8) (33.3) (27.5) (43.2)
Income tax payable - - - (0.1)
--------------------------------- ----- ------- ------- ------- -------
(52.3) (91.0) (63.2) (100.7)
--------------------------------- ----- ------- ------- ------- -------
Non-current liabilities
Borrowings (143.4) (149.2) (143.4) (149.2)
Lease liabilities 12 (75.3) (77.0) (69.1) (59.6)
Derivative financial instruments (1.4) (3.3) (1.4) (3.3)
Deferred tax liabilities (73.6) (69.9) (73.4) (65.7)
Retirement benefit schemes 11 (6.1) (8.2) (6.1) (8.2)
Other liabilities - (0.2) - (0.2)
--------------------------------- ----- ------- ------- ------- -------
(299.8) (307.8) (293.4) (286.2)
--------------------------------- ----- ------- ------- ------- -------
Total liabilities (352.1) (398.8) (356.6) (386.9)
--------------------------------- ----- ------- ------- ------- -------
Net assets 645.4 590.8 641.4 586.6
--------------------------------- ----- ------- ------- ------- -------
Capital and reserves
Share capital 7.3 6.1 7.3 6.1
Share premium 7.6 7.5 7.6 7.5
Capital redemption reserve 1.8 1.8 1.8 1.8
Hedging reserve (2.4) (4.4) (2.4) (4.4)
Revaluation reserve 253.6 248.4 244.4 239.2
Retained earnings 377.5 331.4 382.7 336.4
-------
Total equity 645.4 590.8 641.4 586.6
--------------------------------- ----- ------- ------- ------- -------
STATEMENTS OF CASH FLOW
For the 52 weeks ended 29 March 2021
Group Company
--------------- ---------------
2021 2020 2021 2020
Notes GBPm GBPm GBPm GBPm
-------------------------------------- ----- ------- ------ ------- ------
Operating activities
Net cash generated from operations 13 (23.0) 72.5 (23.9) 71.1
Tax paid - (13.5) - (13.0)
-------------------------------------- ----- ------- ------ ------- ------
Net cash flow from operating
activities (23.0) 59.0 (23.9) 58.1
-------------------------------------- ----- ------- ------ ------- ------
Investing activities
Proceeds from disposal of property
and equipment 0.4 1.0 0.4 0.9
Purchases of property and equipment (19.1) (32.7) (19.1) (32.5)
Business combinations, net of
cash acquired - (35.3) - (15.3)
Right-of-use assets acquired - (0.2) - (0.2)
Acquisition of subsidiary, net
of cash acquired - - - (20.1)
-------------------------------------- ----- ------- ------ ------- ------
Net cash used in investing activities (18.7) (67.2) (18.7) (67.2)
-------------------------------------- ----- ------- ------ ------- ------
Financing activities
Interest paid (9.8) (8.6) (9.4) (8.2)
Issued equity, net of transaction
costs 84.9 - 84.9 -
Equity dividends paid 7 - (10.5) - (10.5)
Payments of principal portion
of lease liabilities (4.3) (8.1) (3.8) (7.3)
Repayment of borrowings (115.5) (8.5) (115.5) (8.5)
Proceeds from borrowings 90.0 36.5 90.0 36.5
-------------------------------------- ----- ------- ------ ------- ------
Net cash flow used in financing
activities 45.3 0.8 46.2 2.0
--------------------------------------------- ------- ------ ------- ------
Increase/(decrease) in cash 3.6 (7.4) 3.6 (7.1)
Cash at the beginning of the
period 1.1 8.5 1.1 8.2
-------------------------------------- ----- ------- ------ ------- ------
Cash at the end of the period 4.7 1.1 4.7 1.1
-------------------------------------- ----- ------- ------ ------- ------
GROUP STATEMENT OF CHANGES IN EQUITY
At 29 March 2021
Capital
Share redemption Hedging Revaluation Retained Total
capital(1) reserve reserve reserve earnings equity
Notes GBPm GBPm GBPm GBPm GBPm GBPm
--------------------------------------- ----------- ----------- ------- ----------- -------- ------
At 2 April 2019 12.8 1.8 (4.8) 261.5 322.5 593.8
Total comprehensive income
Profit for the period - - - - 19.3 19.3
---------------------------------- --- ----------- ----------- ------- ----------- -------- ------
Other comprehensive income
Unrealised loss on revaluation
of property 9 - - - (9.3) - (9.3)
Remeasurement of retirement
benefit schemes 11 - - - - (0.7) (0.7)
Fair value movement of interest
rate swaps - - 0.4 - - 0.4
Tax on above components of
other comprehensive income - - - (3.8) 0.7 (3.1)
---------------------------------- --- ----------- ----------- ------- ----------- -------- ------
- - 0.4 (13.1) - (12.7)
---------------------------------- --- ----------- ----------- ------- ----------- -------- ------
Total comprehensive income - - 0.4 (13.1) 19.3 6.6
---------------------------------- --- ----------- ----------- ------- ----------- -------- ------
Transactions with owners recorded directly in equity
Share capital issued 0.8 - - - - 0.8
Dividends paid on equity shares 7 - - - - (10.5) (10.5)
Share based payments - - - - 0.1 0.1
Tax on share based payments - - - - (0.3) (0.3)
Movement in shares held by
The Ram Brewery Trust II - - - - 0.3 0.3
---------------------------------- --- ----------- ----------- ------- ----------- -------- ------
0.8 - - - (10.4) (9.6)
---------------------------------- --- ----------- ----------- ------- ----------- -------- ------
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 loss on revaluation
of property 9 - - - 9.0 - 9.0
Remeasurement of retirement
benefit schemes 11 - - - - 0.9 0.9
Fair value movement of interest
rate swaps - - 2.5 - - 2.5
Tax on above components of
other
comprehensive income - - (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)
Tax on share based payments - - - - - -
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
---------------------------------- --- ----------- ----------- ------- ----------- -------- ------
(1) Total share capital comprises the nominal value of the share capital
issued and fully paid of GBP7.3 million (2020: GBP6.1 million) and the
share premium account of GBP7.6 million (2020: GBP7.5 million). Share capital
issued in the period comprises the nominal value of GBP1.2 million (2020:
GBPnil) and share premium of GBP0.1 million (2020: GBP0.8 million).
(2) During the period, the group raised equity resulting in gross proceeds
of GBP88.4 million. 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 is therefore considered to
be a realised profit and GBP83.6 million was recognised directly in retained
earnings.
NOTES TO THE FINANCIAL STATEMENTS
For the 52 weeks ended 29 March 2021
1. General information
This preliminary announcement was approved by the board on 19
May 2021. The financial statements in it are not the group's
statutory financial statements. The statutory financial statements
for the period ended 30 March 2020 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 29 March 2021, which are expected to be delivered to the
Registrar of Companies shortly. The report for the 2021 accounts
was (i) unqualified, (ii) contains a material uncertainty in
respect of going concern to which the auditor drew attention by way
of emphasis without modifying their 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 2020 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 their opinion and did not include a reference to any
matters to which the auditor drew attention by way of emphasis
without qualifying the reports 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
29 March 2021 and the 52 weeks ended 30 March 2020
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 international accounting standards in
conformity with 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 29 March 2021. The financial statements will also be
available on the group's website, www.youngs.co.uk .
Going concern
At the start of the financial year the group's financing
position was strengthened through raising further debt and equity.
Additional debt facilities have been obtained through accessing the
CCFF, whereby GBP30.0 million of commercial paper with a maturity
date of 13 May 2021 was secured, alongside a new revolving credit
facility of GBP20.0 million with NatWest for an initial period of
one year to May 2021. This has now been extended for a further 6
months to 28 November 2021, with a final further 6-month extension
option available subject to NatWest consent. Longer-term, the
GBP50.0 million term loan due to expire in March 2021 was replaced
with a five-year facility expiring in 2025. In June 2020, the group
also completed an equity issue raising gross proceeds of GBP88.4
million in the period.
At 29 March 2021, the group had cash in bank of GBP4.7 million
and committed borrowing facilities of GBP285.0 million, of which
GBP174.8 million was drawn down. The group expects, by the end of
June 2022 (the 'going concern' period), to have available
facilities of GBP235.0 million; it has already repaid the GBP30.0
million due under the CCFF and is not anticipating continuing with
the GBP20.0 million RCF with NatWest beyond November 2021. In
addition to these facilities, the group has a GBP10.0 million
overdraft with HSBC, which is not committed.
During the period the group has also considered the effects of
its then latest forecasts on its compliance with bank covenants,
which were due to be tested each quarter on a 12-month rolling
basis. In anticipation of breaches due to the impact of the
pandemic, the group agreed with its lenders in May 2020 that the
financial covenants would be replaced by a monthly available
liquidity test. These initial covenant waivers have now been
extended until the quarter ending March 2022. The waivers require
the group to have GBP25.0 million of available liquidity at each
month end until the quarter ending March 2022 and for total loan
facilities not to exceed GBP220.0 million during the waiver period.
In addition, they have waived any technical "cessation of business"
breach of our banking facilities as a result of our pubs being
closed due to the coronavirus pandemic through to the quarter end
June 2021. Although there is no material uncertainty about the
group's ability to comply with the minimum debt headroom covenant
that is in place until March 2022, those banking covenants revert
to the group's original financial covenants for the March 2022
quarterly covenant test onwards.
In response to covid-19 the group's entire pub estate has
endured extended periods of Government enforced closure and
significant restrictions on trade. Although the Government has
provided the roadmap to ultimately remove trade restrictions there
remains a degree of uncertainty ahead. As part of the directors'
consideration of the appropriateness of adopting the going concern
basis, the group has modelled several scenarios for the period to
the end of June 2022. The key judgements applied are the extent of
disruption to trading as a result of the Government's reopening
roadmap, the speed at which trade resumes and any potential future
unplanned restrictions or closures. The base case scenario assumes
that pubs with outdoor space reopen on 12 April, followed by all
pubs reopening on 17 May and ultimately restrictions dropping away
from 21 June. The more severe scenarios include a slower build of
trade in the summer months, further long periods of forced closure
and reduced trade through key trading periods such as December. We
have assumed no significant structural changes to the business will
be needed in any of the scenarios modelled.
In the base case scenario, there is significant headroom under
the revised monthly available liquidity test through to March 2022
and, when covenants revert to the group's original financial
covenants from March 2022 onwards, there would be significant
headroom and all covenants would be fully complied with through the
going concern period. However, under the more severe scenarios
where our pubs may be required to close again for prolonged periods
and trade might be suppressed at key times due to the
reintroduction of social distancing measures, the group would still
comply with revised covenants to March 2022, but on reverting to
the original financial covenants for the March 2022 and June 2022
quarter end tests, certain performance-based covenants would risk
being breached. Under the reverse stress test, we looked at the
impact of pubs remaining closed (the trigger point) indefinitely,
combined with not receiving the final six-month extension on the
GBP20.0 million RCF, effectively dropping away end of November
2021. Under this scenario Young's would fail the monthly minimum
liquidity test at the end of December 2021 and on revision to the
original banking covenants in March 2022 certain performance-based
covenants would be breached.
There are numerous covid-19 impacted trading scenarios which
could be modelled highlighting how Young's might deviate from the
base case. Ultimately, operating profit would need to drop by
almost 80% from the base model for banking covenants to fail in
March 2022 when we resume the quarterly testing. To realise this
level of lost profit would involve significant periods of closure,
delay in the reopening roadmap and the reintroduction of trading
restrictions at key periods.
Given there remains uncertainty over trade, compliance with the
original banking covenants for the March 2022 test date does
represent a material uncertainty to Young's that casts doubt about
the group's ability to continue as a going concern. We are in
regular dialogue with our lenders and, should such a scenario
arise, we are confident that we would be able to agree remedies,
including an extension of the covenant changes agreed already, well
in advance of March 2022.
The coronavirus pandemic will continue to have an impact on
Young's business during the going concern period to 27 June 2022,
as restrictions are relaxed, and trade rebuilds. Based on current
forecasts and sensitivities, together with the potential remedy
should a covenant breach occur as described above, the Young's
board is confident that with the current reopening plans, the
ongoing debt structure in place and the June 2020 equity raise
there are sufficient financial resources to meet all liabilities
until at least the 27 June 2022 even with further trading
disruption or closure periods.
Accordingly, the board continues to adopt the going concern
basis in preparing the financial statements. The financial
statements do not contain the adjustments that would result if the
company was unable to continue as a going concern.
2. Basis of preparation
The group and parent company financial statements have been
prepared in accordance with international accounting standards in
conformity with the requirements of the Companies Act 2006. IFRS
includes the application of International Financial Reporting
Standards (IFRS) including International Accounting Standards (IAS)
and related Interpretations of the International Financial
Reporting Interpretations Committee (IFRIC) and Interpretations of
the Standing Interpretations Committee (SIC). During the period,
new IFRS and amendments to existing IFRS were issued by the
International Accounting Standards Board (IASB). The impact and, if
applicable, the adoption of these standards is described below in
"New Accounting Standards, Amendments and Interpretations".
No separate income statement or statement of comprehensive
income are presented for the company, as permitted by section
408(3) of the Companies Act 2006.
New Accounting Standards, Amendments and Interpretations
Covid-19-Related Rent Concessions - Amendment to IFRS 16
Amendments were made to IFRS 16 Leases to provide relief to
lessees from applying the IFRS 16 guidance on lease modifications
to rent concessions arising as a direct consequence of the covid
pandemic.
As a practical expedient, the group elected not to assess
whether covid-related rent concessions from a lessor were a lease
modification; this resulted in 23 property leases becoming within
scope of the amendment due to payment holidays or rent deferrals
being granted directly as a result of the covid pandemic.
Adoption of the amendment has been applied retrospectively,
however had no material impact on opening retained earnings, the
opening lease liabilities or the opening right-of-use assets due to
the timing of the rent concessions. The accounting treatment
applied varied on a lease-to-lease basis dependent upon the
specific conditions of each rent concession. In general, rent
concessions were treated as a contingency that fixed previously
variable lease payments. In such cases, the lease liabilities were
remeasured, using the remeasured consideration, with a
corresponding adjustment to the right-of-use assets. Where rent
deferrals were agreed with only short-term timing differences, no
changes were made to the lease liability payment schedule. In these
cases, the lease liabilities and right-of-use assets remained
unchanged, however a separate payable was reflected within trade
and other payables in the balance sheet.
Other amendments to accounting standards applied from 31 March
2020 were as follows:
-- Definition of Material - amendments to IAS 1 and IAS 8;
-- Definition of a Business - amendment to IFRS 3;
-- Revised Conceptual Framework for Financial Reporting; and
-- Interest Rate Benchmark Reform - amendments to IFRS 9, IAS 39 and IFRS 7.
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.
The group has applied phase 1 of the interest rate benchmark
reform and has identified a number of swaps that are linked to the
LIBOR rate. Under phase 1 the Group has elected to take the relief
provided for continuation of hedge accounting and continues to
hedge account on interest rate swaps. The Group is in the process
of assessing the transition to alternative interest rate benchmarks
ahead of phase 2 of the reform being implemented.
3. 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 has two operating segments: managed houses and Ram Pub
Company. The managed house segment operates pubs. Revenue is
derived from sales of drink, food and accommodation. The Ram Pub
Company 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.
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 Ram Pub Segments
houses Company total Unallocated Total
2021 GBPm GBPm GBPm GBPm GBPm
Sales of goods 84.5 2.2 86.7 - 86.7
Accommodation sales 2.5 - 2.5 - 2.5
------------------------------------ -------- -------- -------- ----------- ------
Total revenue from contracts with
customers 87.0 2.2 89.2 - 89.2
Rental income - 1.1 1.1 0.3 1.4
------------------------------------ -------- -------- -------- ----------- ------
Total revenue recognised 87.0 3.3 90.3 0.3 90.6
------------------------------------ -------- -------- -------- ----------- ------
Adjusted operating loss (18.6) (0.7) (19.3) (14.7) (34.0)
Adjusting items (0.6) 0.1 (0.5) (0.6) (1.1)
------------------------------------ -------- -------- -------- ----------- ------
Operating loss (19.2) (0.6) (19.8) (15.3) (35.1)
GBP0.3 million of unallocated income (2020: GBP0.4 million) is rental income
derived from unlicensed properties.
Income statement Managed Ram Pub Segments
houses Company total Unallocated Total
2020 GBPm GBPm GBPm GBPm GBPm
Sales of goods 284.5 8.8 293.3 - 293.3
Accommodation sales 14.0 - 14.0 - 14.0
------------------------------------ -------- -------- -------- ----------- ------
Total revenue from contracts with
customers 298.5 8.8 307.3 - 307.3
Rental income 0.6 3.3 3.9 0.4 4.3
------------------------------------ -------- -------- -------- ----------- ------
Total revenue recognised 299.1 12.1 311.2 0.4 311.6
------------------------------------ -------- -------- -------- ----------- ------
Adjusted operating profit/(loss) 59.9 4.3 64.2 (17.7) 46.5
Adjusting items (7.0) (1.4) (8.4) (0.2) (8.6)
Operating profit/(loss) 52.9 2.9 55.8 (17.9) 37.9
------------------------------------ -------- -------- -------- ----------- ------
4. Adjusting items
2021 2020
GBPm GBPm
-------------------------------------------------------- ----- ------
Amounts included in operating profit:
Upward movement on the revaluation of properties(note
9)(1) 3.4 1.7
Downward movement on the revaluation of properties(note
9)(1) (1.6) (7.0)
Group reorganisation(2) (1.4) -
Covid restructuring(3) (0.5) -
Tenant compensation(4) (0.5) (1.7)
Net loss on disposal of properties(5) (0.5) (0.6)
Acquisition costs(6) - (1.0)
-------------------------------------------------------- ----- ------
(1.1) (8.6)
-------------------------------------------------------- ----- ------
Tax on adjusting items:
-------------------------------------------------------- ----- ------
Tax attributable to adjusting items 0.2 (1.6)
Total adjusting items after tax (0.9) (10.2)
-------------------------------------------------------- ----- ------
(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 GBP3.4 million
(2020: GBP1.7 million) representing reversals of previous
impairments recognised in the income statement, and a downward
movement of GBP1.6 million (2020: GBP7.0 million), representing
downward movements in excess of amounts recognised in equity. These
resulted in a net upward movement of GBP1.8 million (2020: GBP5.3
million net downward) which has been recognised in the income
statement. The upward movement for the period ended 29 March 2021
was split between land and buildings of GBP1.8 million (2020:
GBP5.3 million downward) and fixtures and fittings of GBPnil (2020:
GBPnil). See note 3 for segmental information and note 9 for
information on the revaluation of properties.
(2) 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.
(3) 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.
(4) 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. During the
prior period, tenant compensation of GBP1.7 million was paid to the
previous tenants of the White Bear (Tunbridge Wells), New Inn
(Ealing), Constitution (Camden) and an unlicensed property
(Wandsworth) to terminate their lease agreements early.
(5) 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. In the prior period, the carrying value of the
Horse Pond Inn was previously derecognised from property and
equipment and instead classified as an asset held for sale.
Proceeds of GBP0.4 million were recognised in respect of the sale
of the Horse Pond Inn 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
lease expiry of the Builder's Arms (Chelsea), termination of the
lease of the Alphabet (Islington) and the sale of the Bristol Ram
(Bristol) and the carrying value of their assets, including
goodwill, at the dates of disposal.
(6) The prior period acquisition costs related to the purchase
of Spring Pub Company Limited, a group of 5 sites acquired on 12
March 2020, along with the White Bear (Tunbridge Wells) and the
Constitution (Camden). They included legal and professional fees
and stamp duty land tax.
5. 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 4. All the results below are from continuing
operations.
2021 2020
------------------------------- -------------------------------
Adjusting Adjusting
Unadjusted items Adjusted Unadjusted items Adjusted
GBPm GBPm GBPm GBPm GBPm GBPm
------------------------------ ---------- --------- -------- ---------- --------- --------
EBITDA (3.2) 2.9 (0.3) 76.3 3.3 79.6
Depreciation and net movement
on the revaluation of
properties (31.9) (1.8) (33.7) (38.4) 5.3 (33.1)
------------------------------ ---------- --------- -------- ---------- --------- --------
Operating (loss)/profit (35.1) 1.1 (34.0) 37.9 8.6 46.5
Net finance costs (9.9) - (9.9) (8.6) - (8.6)
Finance charge for pension
obligations (0.2) - (0.2) (0.2) - (0.2)
------------------------------ ---------- --------- -------- ---------- --------- --------
(Loss)/profit before tax (45.2) 1.1 (44.1) 29.1 8.6 37.7
------------------------------ ---------- --------- -------- ---------- --------- --------
6. Taxation
The major components of income tax (credit)/expense for the
years ended 29 March 2021 and 30 March 2020 are:
2021 2020
Tax (credited)/charged in the group income statement GBPm GBPm
--------------------------------------------------------- ----- -----
Current income tax
Current tax (credit)/expense (5.8) 8.6
(5.8) 8.6
--------------------------------------------------------- ----- -----
Deferred tax
Relating to origin and reversal of temporary differences (1.6) (0.4)
Adjustment in respect of deferred tax of prior periods 0.5 -
Change in corporation tax rate - 1.6
--------------------------------------------------------- ----- -----
(1.1) 1.2
--------------------------------------------------------- ----- -----
Income tax (credited)/charged in the income statement (6.9) 9.8
--------------------------------------------------------- ----- -----
Deferred tax in the group income statement
--------------------------------------------------------- ----- -----
Property revaluation and disposals (0.1) 1.4
Capital allowances (0.2) (1.2)
Retirement benefit schemes 0.2 0.6
Share based payments - 0.3
Trade losses (1.0) 0.1
--------------------------------------------------------- ----- -----
Deferred tax (credited)/charged in the income statement (1.1) 1.2
--------------------------------------------------------- ----- -----
Deferred tax in the group statement of other comprehensive income
-----------------------------------------------------------------------
Property revaluation and disposals 3.8 (1.5)
Retirement benefit schemes 0.2 (0.1)
Interest rate swaps 0.5 0.1
Change in corporation tax rate - 4.6
--------------------------------------------------------- ----- -----
Deferred tax charged to other comprehensive income 4.5 3.1
--------------------------------------------------------- ----- -----
The deferred tax assets and liabilities at the balance sheet
date are calculated at the substantively enacted rate of 19%.
7. Dividends on equity shares
2021 2020 2021 2020
Pence per share Pence per share GBPm GBPm
-------------------------- --------------- --------------- ---- ----
Final dividend (previous
period) - 10.81 - 5.3
Interim dividend (current
period) - 10.57 - 5.2
-------------------------- --------------- --------------- ---- ----
- 21.38 - 10.5
-------------------------- --------------- --------------- ---- ----
The table above sets out dividend that had been paid. The board
is has decided that it is not appropriate to recommend payment of a
final dividend in respect of the period ended 29 March 2021.
8. (Loss)/earnings per ordinary share
(a) (Loss)/earnings 2021 2020
GBPm GBPm
---------------------------------------------------- ---------- ----------
(Loss)/profit attributable to equity shareholders
of the parent (38.3) 19.3
Adjusting items 1.1 8.6
Tax attributable to above adjustments (0.2) 1.6
Adjusted (loss)/earnings after tax (37.4) 29.5
---------------------------------------------------- ---------- ----------
Number Number
---------------------------------------------------- ---------- ----------
Basic weighted average number of ordinary shares
in issue 56,132,368 49,018,801
Dilutive potential ordinary shares from outstanding
employee share options - 28,901
---------------------------------------------------- ---------- ----------
Diluted weighted average number of shares 56,132,368 49,047,702
---------------------------------------------------- ---------- ----------
(b) Basic (loss)/earnings per share
Pence Pence
---------------------------------------------------- ---------- ----------
Basic (68.23) 39.37
Effect of adjusting items 1.60 20.81
---------------------------------------------------- ---------- ----------
Adjusted basic (loss)/earnings per share (66.63) 60.18
---------------------------------------------------- ---------- ----------
(c) Diluted (loss)/earnings per share
Pence Pence
---------------------------------------------------- ---------- ----------
Diluted (68.23) 39.35
Effect of adjusting items 1.60 20.80
---------------------------------------------------- ---------- ----------
Adjusted diluted (loss)/earnings per share (66.63) 60.15
---------------------------------------------------- ---------- ----------
The basic (loss)/earnings per share figure is calculated by
dividing the net (loss)/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 (loss)/earnings per share are calculated on a similar
basis taking into account dilutive potential shares under our SAYE
scheme. 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.
During the prior period, there were 28,901 dilutive shares.
Adjusted (loss)/earnings per share are presented to eliminate
the effect of the adjusting items and the tax attributable to those
items on basic and diluted (loss)/earnings per share.
9. Property and equipment
Group Company
---------------------------- ----------------------------
Fixtures, Fixtures,
fittings fittings
Land & & Land & &
buildings equipment Total buildings equipment Total
GBPm GBPm GBPm GBPm GBPm GBPm
----------------------------------- --------- --------- ------ --------- --------- ------
Cost or valuation
At 2 April 2019 693.3 148.0 841.3 668.8 141.3 810.1
Additions 6.6 26.1 32.7 6.5 26.0 32.5
Business combinations 27.1 2.6 29.7 14.4 0.9 15.3
Transfers from subsidiary
companies - - - 20.8 2.1 22.9
Disposals (1.7) (0.8) (2.5) (1.0) (0.6) (1.6)
Transfer out to asset held
for sale (0.8) (0.4) (1.2) (0.8) (0.4) (1.2)
Fully depreciated assets (0.2) (14.8) (15.0) (0.2) (14.8) (15.0)
Revaluation(1)
-upward movement in valuation 19.1 - 19.1 19.1 - 19.1
- downward movement in valuation (29.3) - (29.3) (28.8) - (28.8)
----------------------------------- --------- --------- ------ --------- --------- ------
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
----------------------------------- --------- --------- ------ --------- --------- ------
Depreciation and impairment
At 2 April 2019 27.8 62.9 90.7 26.6 62.2 88.8
Depreciation charge 1.6 24.0 25.6 1.4 23.5 24.9
Disposals (1.0) (0.3) (1.3) (0.3) (0.3) (0.6)
Transfer out to asset held
for sale (0.6) (0.1) (0.7) (0.6) (0.1) (0.7)
Fully depreciated assets (0.2) (14.8) (15.0) (0.2) (14.8) (15.0)
Revaluation(1)
-upward movement in valuation 7.0 - 7.0 7.0 - 7.0
- downward movement in valuation (2.6) - (2.6) (2.6) - (2.6)
----------------------------------- --------- --------- ------ --------- --------- ------
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
----------------------------------- --------- --------- ------ --------- --------- ------
Net book value
At 2 April 2019 665.5 85.1 750.6 642.2 79.1 721.3
----------------------------------- --------- --------- ------ --------- --------- ------
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
----------------------------------- --------- --------- ------ --------- --------- ------
(1) The group's net book value uplift during the period was
GBP10.8 million (2020: an impairment GBP14.6 million). This uplift
was recognised either in the revaluation reserve or the income
statement, as appropriate.
The impact of the revaluations was as follows:
Group Company
--------------------------------------- ------------- -------------
2021 2020 2021 2020
GBPm GBPm GBPm GBPm
--------------------------------------- ----- ------ ----- ------
Income statement
Revaluation loss charged as impairment (1.6) (7.0) (1.6) (7.0)
Reversal of past impairment 3.4 1.7 3.4 1.7
--------------------------------------- ----- ------ ----- ------
Net uplift/(impairment) recognised
in the income statement 1.8 (5.3) 1.8 (5.3)
--------------------------------------- ----- ------ ----- ------
Revaluation reserve
Unrealised revaluation surplus 15.0 20.0 15.0 20.0
Reversal of past surplus (6.0) (29.3) (6.0) (29.6)
--------------------------------------- ----- ------ ----- ------
Net uplift/(impairment) recognised
in the revaluation reserve 9.0 (9.3) 9.0 (9.6)
--------------------------------------- ----- ------ ----- ------
Net revaluation increase/(decrease)
in property 10.8 (14.6) 10.8 (14.9)
--------------------------------------- ----- ------ ----- ------
Savills, an independent and leading commercial property adviser,
has revalued all our freehold properties, supported by Brendan
Brammer, BSc (Hons) MRICS, our interim director of property and
tenancies. The valuation contains a material uncertainty given the
lack of comparable transactional activity since the onset of
coronavirus and the uncertainty over future trade at the valuation
date.
10. 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 2 April
2019 147.8 0.3 0.1 148.2 125.4 0.3 0.1 125.8
---------------------- -------- -------- ------ ----- -------- -------- ------ -----
Additions 2.8 0.2 - 3.0 12.5 0.2 - 12.7
Business combinations 15.0 - - 15.0 - - - -
Lease amendments 4.7 - - 4.7 4.7 - - 4.7
Depreciation (7.3) (0.2) - (7.5) (6.1) (0.2) - (6.3)
---------------------- -------- -------- ------ ----- -------- -------- ------ -----
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
---------------------- -------- -------- ------ ----- -------- -------- ------ -----
11. Retirement benefit schemes
Movement in scheme deficits in
the period
Group and company
----------------------------------------------
2021 2020
Health Health
Pension care Pension care
scheme scheme Total scheme scheme Total
GBPm GBPm GBPm GBPm GBPm GBPm
------------------------------ ------- ------ ----- ------- ------ -----
Changes in the present value of the schemes are
as follows:
Opening deficit (4.6) (3.6) (8.2) (5.1) (3.5) (8.6)
Current service cost (0.2) - (0.2) (0.3) - (0.3)
Contributions 1.4 0.2 1.6 1.4 0.2 1.6
Other finance charges (0.1) (0.1) (0.2) (0.1) (0.1) (0.2)
Remeasurement through other
comprehensive income 1.3 (0.4) 0.9 (0.5) (0.2) (0.7)
Closing deficit (2.2) (3.9) (6.1) (4.6) (3.6) (8.2)
------------------------------ ------- ------ ----- ------- ------ -----
12. Lease liabilities
Set out below are the carrying amounts of lease liabilities and
the movements during the period:
Group Company
----------------------- ------ -------
As at 2 April 2019 74.6 64.3
----------------------- ------ -------
Additions 2.8 2.9
Business combinations 8.3 -
Lease amendments 4.7 4.7
Accretions of interest 2.5 2.1
Payments (10.6) (9.4)
----------------------- ------ -------
82.3 64.6
----------------------- ------ -------
Current 5.3 5.0
Non-current 77.0 59.6
----------------------- ------ -------
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)
----------------------- ------ -------
As at 29 March 2021 80.2 73.2
----------------------- ------ -------
Current 4.9 4.1
Non-current 75.3 69.1
----------------------- ------ -------
13. Net cash generated from operations and analysis of net
debt
Group Company
------------- -------------
2021 2020 2021 2020
GBPm GBPm GBPm GBPm
------------------------------------------------- ------ ----- ------ -----
(Loss)/profit before tax on continuing
operations (45.2) 29.1 (45.1) 28.0
Net finance cost 9.9 8.6 9.5 8.4
Finance charge for pension obligations 0.2 0.2 0.2 0.2
------------------------------------------------- ------ ----- ------ -----
Operating (loss)/profit on continuing operations (35.1) 37.9 (35.4) 36.6
Depreciation of property and equipment 26.1 25.6 25.9 24.9
Depreciation of right-of-use assets 7.6 7.5 6.3 6.3
Movement on revaluation of properties (1.8) 5.3 (1.8) 5.3
Net loss/(profit) on disposal of property 0.5 0.6 0.5 0.3
Difference between pension service cost
and cash contributions paid (1.4) (1.3) (1.4) (1.3)
Business transfer from subsidiary to parent - - - 0.8
Movement in other provisions - - - 0.6
Share based payments (0.1) 0.1 (0.1) 0.1
Movements in working capital
- Inventories 0.7 0.5 0.6 0.4
- Receivables (1.2) (1.8) (1.5) (1.2)
- Payables (18.3) (1.9) (17.0) (1.7)
------------------------------------------------- ------ ----- ------ -----
Net cash generated from operations (23.0) 72.5 (23.9) 71.1
------------------------------------------------- ------ ----- ------ -----
Analysis of net debt
Group Company
---------------- ------- -------
2021 2020 2021 2020
GBPm GBPm GBPm GBPm
---------------------------- ------- ------- ------- -------
Cash 4.7 1.1 4.7 1.1
Current borrowings and loan
capital (29.8) (50.0) (29.8) (50.0)
Current lease liability (4.9) (5.3) (4.1) (5.0)
Non-current borrowings and
loan capital (143.4) (149.2) (143.4) (149.2)
Non-current lease liability (75.3) (77.0) (69.1) (59.6)
---------------------------- ------- ------- ------- -------
Net debt (248.7) (280.4) (241.7) (262.7)
---------------------------- ------- ------- ------- -------
14. Post balance sheet events
The only balance sheet events were the acquisition of the
Greenwich Union and the sale of the Grove House (Camberwell) which
was classified as asset held for sale at 29 March 2021.
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