LONDON (ShareCast) - (Sharecast News) - Young & Co's Brewery struck an upbeat note on Wednesday, despite a slide in full-year profits, as it flagged a bumper summer of sport.
The pub group said revenues had risen 5.4% in the year to 1 April to £388.8m, or by 3.4% on a like-for-like basis.

Adjusted operating profits were ahead 9.4% at £57.3m.

Pre-tax profits fell nearly 43%, however, to £20.7m, on the back of higher impairment charges, property revaluations and costs related to the £162m acquisition of rival City Pub Group, which completed in March. Net debt soared by almost 118% to £359.6m.

The group said the integration was already progressing as planned, with the deal contributing £7.2m in revenue in the four weeks of ownership and £1.7m in earnings before interest, tax, depreciation and amortisation. City Pub Group operates 50 venues across southern England.

Current trading also remained strong, Young's said, despite the poor weather.

Managed house revenue in the nine weeks since the year end, including City Pub Group, jumped by 24.4%, or by 2.4% on a like-for-like basis.

Simon Dodd, chief executive, said it had been a "landmark" year for the business. "We have reported another excellent financial performance, with industry leading profitability," he said.

"We are delighted to complete on our acquisition of City Pub Group, a real milestone."

Looking ahead, he added: "We face some challenges, but there is plenty to be excited about. We are heading into a feast of summer sporting events, starting with Euro 24, Wimbledon and the Olympics. Then we look forward to making the most from the return of the autumn rugby internationals, which provides a fantastic opportunity.

"We are confident of our performance in the year ahead."

Young's said it expected the net debt to adjusted EBITDA ratio, currently x3.9, to fall back to more historical levels by the end of the year, due to additional earnings from City Pub Group.

As at 0900 BST, shares in Young's were down 2% at 970.99p.

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