LONDON (ShareCast) - (Sharecast News) - Pub group Young & Co set out its reopening plans on Wednesday and said it has agreed with lenders that its dividend payments for the next year cannot exceed £5m.
Young's expects to reopen about 140 of its managed pubs with outdoor spaces on or around 12 April, in line with government guidance. Assuming the Roadmap timetable is followed, the rest of its managed estate should open on or around 17 May, with restricted indoor trading. It expects to see "more normal" trading conditions from 21 June.

If the reopening schedule proceeds as planned, Young's expects to deliver a positive cash flow in May.

The pub chain said that following the extensive period of closure in the current financial year and expected lower levels of trade in the first three months of its new financial year starting on 30 March, it will not be paying any dividend for the current year.

"The company's 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," it said.

However, the group has agreed with NatWest and the holders of its senior secured notes that any dividend payments in FY2021/22 will not exceed £5m in aggregate, although there is no restriction on recommending a final dividend with its results for FY2021/22, payable in the following financial year, as normal.

Young's also said on Wednesday that it has agreed an extension to its monthly available liquidity test up to and including March 2022, with a headroom requirement of £25m.

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