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1、Annual Report for the 52 weeks ended 28 March 2022The Youngs differenceHighlightsProfit/(loss)before tax(m)*42.12021:(44.5)Adjusted basic earnings/(loss)per share156.26p2021:(66.63)pDividend per share18.81p2021:Net cash generated from operations(m)107.02021:(23.0)Basic earnings/(loss)per share58.83p
2、2021:(68.23)pNet assets per share211.97p2021:11.04pRevenue (m)*309.02021:88.0Operating profit/(loss)(m)*51.72021:(34.5)Adjusted operating profit/(loss)(m)1*51.42021:(33.2)Adjusted profit/(loss)before tax(m)1*41.82021:(43.2)*from continuing operations.1 Reference to an adjusted item means that item h
3、as been adjusted to exclude non-underlying costs(see notes 11 and 12).2 Net assets per share are the groups net assets divided by the shares in issue at the period end.The Youngs differenceYoungs pubs and hotels are at the heart of our local communities in London and the south of England.With more t
4、han 200 establishments,our award-winning design approach means excellence in ambience as well as service and location.From poetic pubs steeped in history to secret underground cocktail bars,the character and individuality of each of our premises gives them a unique feel.Our pubs have style and soul,
5、and the people who work with us have pride in our culture and passion forthe work they do.Strategic Report04 Chairmans statement06 Youngs at a glance 08 Investing in our estate10 Our business model12 Chief executives review15 Our strategy16 Key Performance Indicators18 Our latest acquisitions20 Sect
6、ion 172(1)statement24 Sustainability report40 Principle risks and uncertainties45 Business and financial reviewCorporate Governance52 Chairmans corporate governance statement54 Board of directors57 Leadership team59 Corporate governance report66 Audit committee report72 Remuneration committee report
7、76 Directors reportFinancial Statements82 Independent auditors report90 Group income statement91 Group statement of comprehensive income92 Balance sheets93 Statements of cash flow94 Group statement of changes in equity95 Parent company statement of changes in equity96 Notes to the financial statemen
8、tsShareholder Information141 Notice of meeting146 Explanatory notes to the notice of meeting148 Senior personnel,committees,banks,advisers and others148 Shareholder informationContentsStrategic Report01Young&Co.s Brewery,P.L.C.|Annual Report 2022Year in reviewJune JulyThe initial delay to freedom da
9、y was disappointing just when the country was riding a wave of positivity as England progressed to the final of the UEFA European Football Championships.It was not until 19 July when all remaining restrictions would drop away.AugustOur hotels saw a boost during August with many families enjoying the
10、ir holidays in the UK once again.Recent investments in our hotels in Devon and Poole(pictured above)were perfectly placed to capitalise on the demand for domestic leisure travel during the school summer holidays.April MayWe could not wait to open our pubs two weeks into the period,even if trading re
11、strictions limited our initial openings to 70%of our estate.From 17 May,restrictions were relaxed to allow internal trading and the remainder of our estate were up and running.It has been another extraordinary year that began with all pubs in our estate closed.Once open,record weeks began to tumble
12、as customers flocked back.Despite the challenges we faced along the way,there have been many highlights,here are just a few.Strategic Report02Young&Co.s Brewery,P.L.C.|Annual Report 2022October NovemberAs we headed into Autumn,our fantastic external spaces once again came into their own.Trading had
13、come back stronger and excitement had started to build ahead of the Christmas period.Our pubs in Central London and the City had also started to see improvements with more and more people returning to work in the office.January MarchThe start of the year began with our Veganuary campaign as we partn
14、ered with Matt Pritchard to launch the Dirty Vegan burger.February heralded the long-awaited return of the Six Nations,where Diageo helped us host special one-off events throughout the tournament.As we ended the year,the Guinea Grill(Mayfair)was crowned 7th in the Estrella Damms top 50 Gastro pubs i
15、n the UK.SeptemberThe sunshine helped us celebrate 190 years of Youngs with our famous dray horses taking to the streets of Greenwich,starting at the Richard the First,then vising the Cutty Sark,Old Brewery and ending at Enderby House on the banks of the River Thames.DecemberEarly Christmas exciteme
16、nt was curtailed by the rapid spread of the Omicron variant.This dealt a significant blow to everyone across the hospitality industry as people hunkered down to protect their family and planned festivities.Strategic Report03Young&Co.s Brewery,P.L.C.|Annual Report 2022Chairmans statement“These result
17、s are testament to the dedication,professionalism and hard work of the Youngs team across what was a disrupted trading year.”Strategic Report04Young&Co.s Brewery,P.L.C.|Annual Report 2022In a year that continued to be overshadowed by covid-19,I am enormously proud of Youngs performance,delivering ad
18、justed EBITDA from continuing operations of 82.5 million(2021:loss of 1.3 million).Trade was strong from day one when initial restrictions were lifted in April,and we were pleased to see all our pubs and beer gardens full again from mid-July when the final restrictions dropped away.Sadly,the Omicron
19、 variant significantly dampened demand through the key Christmas and New Year trading periods,however we finished the year strongly,delivering turnover from continuing operations of 309.0 million(2021:88.0 million).Our long-standing strategy of operating a differentiated,premium,and well-invested pu
20、b estate remains unaltered.This strategy was further supported by our decision during the summer to withdraw from the tenanted model and focus solely on our predominantly freehold managed pubs and hotels.Youngs has been focused on steering a measured long-term course through the covid-19 crisis and
21、the decision to sell our tenanted estate,combined with the financing decisions taken during the summer of 2020,has given us significant financial capacity to continue with our investment programme,investing 73.7 million during the year.This included the acquisition of nine new sites,most notably an
22、extraordinary collection of six of the finest pubs and hotels in and around Cheltenham,which are an excellent addition to our pubs in the Cotswolds.Elsewhere,we continued to invest in our existing estate including several truly transformational projects,notably at the Grand Junction Arms(Harlesden),
23、Kings Head(Winchmore Hill)and the Spread Eagle(Wandsworth)where we created 21 boutique bedrooms and transformed the pub back to its glorious former Victorian best.These investments have added an additional 114 bedrooms,taking us to 802 bedrooms by the end of the period.After a year of significant in
24、vestment,the business remains conservatively financed,with net debt of 173.8 million(2021:248.7 million),being 2.1 times adjusted EBITDA.The board is delighted to recommend the reintroduction of a final dividend of 10.26 pence.If approved by shareholders,this will result in a total dividend for the
25、year of 18.81 pence(2021:no dividend)and it is expected to be paid on 7 July 2022 to shareholders on the register at the close of business on 10 June 2022.The Youngs board continues to evolve and,as previously announced,Patrick Dardis will be stepping down as Chief Executive at this years AGM on 5 J
26、uly,following 20 years with Youngs.He will be succeeded by Simon Dodd,who brings significant experience built over a decade working in the industry.He was recruited three years ago with succession planning in mind and has delivered substantial strategic,operational,and cultural progress since joinin
27、g.We believe that Simons excellent leadership skills,vision and operational experience will be great assets to Youngs.Patrick will remain on the board to oversee the transition to Simon until he retires at the end of September.Happily,Patrick has agreed to stay on in a consultancy role until the end
28、 of March 2023.I have really enjoyed working with Patrick over the last 20 years.He has worked very effectively and with great energy and passion for the business.On behalf of the board,I would like to thank him for his huge contribution and his many successful achievements during his time at Youngs
29、.I am looking forward to working with Simon and a very talented executive team who will take Youngs to the next chapter.We were pleased to welcome Aisling Meany as a non-executive director on 1 September 2021.She has considerable investment banking,capital market,financial services and strategy expe
30、rience.We are very much looking forward to working with her.As a board we are passionate about building a sustainable company,which is central to driving future growth and delivering long-term value.We have a long-standing commitment to driving a positive Environmental,Social,and Governance(ESG)agen
31、da and the company has made progress this year to formalise its approach.We are delighted to have appointed our first sustainability manager who will be supported by the board and wider leadership team.We are equally pleased that Aisling has agreed to become the boards first designated non-executive
32、 director for ESG,supported by the company secretary.Finally,I would also like to personally thank Patrick and his executive team of Mike,Simon,and Tracy,for their continued exemplary leadership and support throughout the pandemic,and also our shareholders for their continued loyalty during such a d
33、emanding period.The ability to retain the momentum in our business whilst maintaining the morale of the Youngs team has meant that we were able to quickly open our pubs and welcome back our loyal customers.Youngs remains a sound resilient business,built on a firm financial footing with a balanced,we
34、ll-invested,and substantial estate of great pubs.Stephen GoodyearChairman18 May 2022309.0mRevenue82.5mAdjusted EBITDA from continuing operationsStrategic Report05Young&Co.s Brewery,P.L.C.|Annual Report 2022Youngs at a glance1831EstablishedFrom stunning riverside terraces to flower-filled garden huts
35、,our collection of pubs have some of the best gardens in London and the south of England.Inside,our pubs have style and soul,and the people who work with us have pride in our culture and passion for the work they do.222Pubs808.0mValuation of our estate51Burger Shacks3.0mApp transactions802Hotel room
36、s1.2mCocktails sold5,275Employees202020212022771.1m808.0m773.7m Managed Tenanted Freehold*Leasehold401823219*includes long leaseholds44.555.5MaleFemaleStrategic Report06Young&Co.s Brewery,P.L.C.|Annual Report 20221822912157236111923152413101714214162083335292630341-506-1011-1516-20More than 20323736
37、31282725South East 28South West 29Greater London 165Our locationsGreater London Map refNo.of pubs1.City of London 82.Barnet 13.Brent 14.Bromley 25.Camden 116.Ealing 47.Enfield 18.Greenwich 89.Hackney 310.Hammersmith&Fulham 1011.Hounslow 112.Islington 1013.Kensington&Chelsea 914.Kingston-upon-Thames
38、515.Lambeth 1016.Lewisham 217.Merton 618.Newham 119.Richmond 1420.Southwark 721.Sutton 322.Tower Hamlets 623.Wandsworth 2824.Westminster 14South East Map refNo.of pubs25.Cambridgeshire 126.East Sussex 127.Hertfordshire 328.Kent 129.Surrey 2030.West Sussex 2South West Map refNo.of pubs31.Berkshire 33
39、2.Devon 633.Dorset 234.Gloucestershire 1335.Hampshire 136.Oxfordshire 337.Wiltshire 1Map refNo.of pubsStrategic Report07Young&Co.s Brewery,P.L.C.|Annual Report 2022Investing in our estateInvesting in our world-class pubs and hotels remains key to the success and long-term growth of our business.Duri
40、ng the period we invested 24.7m in our existing managed estate,restoring iconic favourites and adding new boutique bedrooms.Kings Head,Winchmore Hill(above and left)This jewel in North London has had its regal beauty restored both inside and out.An elegant overhaul of the interior space included sig
41、nificant work on the Green Room,an event space spanning the entire top floor,with its own bar and facilities,perfect for weddings and other celebrations.Outside,our large beer garden with increased covers is now home to private huts and a fire pit fit for a King!Chequers,Walton-on-the-Hill(below and
42、 right)The complete transformation of this traditional country pub in the picturesque village now boasts beautiful interiors with open fires,wood panelled dining rooms,a traditional snug bar,and a bright and elegant garden room.Complete with 6 new bespoke lodges that overlook the best pub garden in
43、Surrey,this popular dining destination is perfect for casual catch-ups,spontaneous visits,and planned celebrations.Strategic Report08Young&Co.s Brewery,P.L.C.|Annual Report 2022Richard the First,Greenwich(above)After purchasing the old Greenwich Union pub next door to our beloved Richard the First,w
44、e took the opportunity to realise the sites potential and create one epic pub in the heart of Greenwich.Keeping the traditional theme throughout,we now have a larger garden,cosy snug seating and a lovely bar area.Spread Eagle,Wandsworth(above and right)Following its transfer from our tenanted divisi
45、on,this Grade II listed Victorian pub has been sensitively restored to celebrate its past.Stylish etched glass,reclaimed wooden floorboards,heritage colours and brass fittings all combine to create an outstanding traditional British pub complete with 21 boutique bedrooms in the heart of Wandsworth.G
46、rand Junction Arms,Harlesden(below)This old tenancy site perched on the Grand Union Canal has an outstanding outdoor space that includes a spacious beer garden and balcony.After significant investment,the pub is now complete with seven garden lodges,our famous Burger Shack offering and a retractable
47、 roof for all seasons of the year.Inside is a majestic Victorian pub finished to the highest modern standards.Strategic Report09Young&Co.s Brewery,P.L.C.|Annual Report 2022Our business modelOur business model captures how we are a resilient business that delivers value for all of our stakeholders in
48、 a sustainable,long-term way.What we doWe manage,acquire and invest in premium,differentiated pubs and hotels in prime locations in London andthe south of England.Freehold estateWe run a predominantly freehold estate that gives us greater control and opportunities within our business and enables us
49、to negotiate better terms with lenders,whilst allowing us to also benefit from increases in property values.Premium pubsWe operate differentiated,premium,mostly drink-led managed pubs in London and the south of England.Our locations are mainly in areas that have a high proportion of affluent and dis
50、cerning customers.Our ValuesAuthenticWeve been around since 1831 and see our heritage as the foundation of our success.Were proud of where weve come from but have our sights set firmly on the future.AssuredWere not humble but we are also not show offs.We do things well,with an understanding that in
51、life,you get what you pay for.How we do itOur competitive advantages enable us to deliver sustainable growth and provide the agility needed in the face of unforeseen challenges.People Depth of knowledge and expertise Strong customer relationships Reliable partners Unique cultureRevenue mix Our reven
52、ue mix is 61.5%drink,34.5%food and 4.0%accommodationDiversified estate Freehold-rich estate Prime locations often within walking distances of public transport linksBuying power Buying power of our managed estate to source the best products at the best pricesStrategic Report10Young&Co.s Brewery,P.L.C
53、.|Annual Report 2022Sustainable growthWe create long-term sustainable growth through strategic investments in our estate,our people and our communities,delivering value for all of our stakeholders.At Youngs,we go beyond thinking about profit we are making investments that not only build up the botto
54、m line,but also build up society.The value we deliverOur business creates value for our stakeholders and economic value in the regions where we operate.Employees Creating rewarding careers for our employees Investors Sustainable financial returns for our shareholdersCustomers High quality service ac
55、ross our pubs and hotelsSuppliers Building long-standing relationships with our suppliersSociety Contributing to our local communities CommunityWe are the centre of the community,essential and well-loved by our patrons,as essential and well-loved as they are by us.We believe in local community celeb
56、ration.ConvivialPremium yet personal hospitality.Friendly,lively good humour.Individual From the late-night city bolt holes to the sprawling neighbourhood centrepieces,from ancient,oak-beamed village inns to underground cocktail bars,our pubs are as individual as the customers who frequent them ever
57、y day.Strategic Report11Young&Co.s Brewery,P.L.C.|Annual Report 202251.7mOperating profit*107.0mNet cash generatedChief executives review“With this,my final year as Chief Executive,I am delighted to announce a strong set of results that reflect areturn to normalised profitability with unrestricted t
58、rading.”*from continuing operationsStrategic Report12Young&Co.s Brewery,P.L.C.|Annual Report 2022In a period where our pubs remained closed for the first two weeks,followed by varying restrictions until freedom day in July,we found ourselves navigating challenges at nearly every turn.Despite the sto
59、rms,floods and tube strikes,or the unwelcome arrival of the Omicron variant which hampered our Christmas trading,our total revenue was up by 251.1%to 309.0 million(2021:88.0 million),with managed house sales ahead of the two-year comparative by 2.9%.Total group adjusted operating profit from continu
60、ing operations was 51.4 million(2021:adjusted operating loss from continuing operations of 33.2 million),with operating profit from continuing operations of 51.7 million(2021:operating loss from continuing operations of 34.5 million).I would like to thank the teams across the business who have worke
61、d so hard to deliver these great results in another year of extraordinary circumstances.It has been a huge privilege to lead the group for the past six years,culminating in a year when Youngs celebrated its 190th birthday.I owe enormous thanks to all my colleagues for their support,contribution and
62、dedication that has made Youngs the business it is today.During the period we were able to move on from measures introduced to steer us through the covid-19 pandemic.In May 2021,we began by repaying the 30.0 million borrowed under the Bank of Englands Covid Corporate Financing Facility and then didn
63、t need to extend the 20.0 million bilateral revolving credit facility with NatWest that matured in November.This marked an important step away from temporary finance support measures.The sale of most of the tenanted estate to Punch Pubs&Co for 53.0 million was a defining moment in our strategy to fo
64、cus on operating predominantly freehold,individual,differentiated and premium managed pubs and pubs with rooms.The sale left us with seven tenanted pubs,three of which we have now sold.One of the remaining pubs,the Grand Junction Arms(Harlesden),now operates as a managed pub following a major invest
65、ment.This significant strategic move gave us cash to further strengthen our balance sheet and extra capacity both to invest in our existing estate and capitalise on attractive acquisition opportunities that present themselves.After a quiet period on the acquisition front last year,we made some excit
66、ing investments.The most significant of these was the acquisition of six pub and hotel assets from the Lucky Onion group in Cheltenham and the Cotswolds during February 2022.These predominantly freehold premium pubs and hotels perfectly complement our existing businesses in the area.We also complete
67、d on three other single site acquisitions:the Bull(Ditchling,Sussex),Pheasant(Lambourn,Berkshire)and White Horse(Hascombe,Surrey).With our focus on returning to normalised trade there was a reluctance to close pubs for major projects.However,maintaining a premium and well-invested pub estate through
68、 continued investment is fundamental to our success,and we spent 30.4 million on our existing business and new head office.It has been a long-term strategic opportunity to maximise the potential of certain assets within our tenanted estate,and two standout examples were at the Grand Junction Arms(Ha
69、rlesden)and Ship Inn(East Grinstead)following their transfer to our managed operation.In line with our strategic objective to increase further our freehold mix,we have been busy this year building our new head office,Copper House,on the same site as the refurbished Spread Eagle hotel,back in the hea
70、rt of Wandsworth.It is great to return to our spiritual home,directly opposite our old brewery site where the story began in 1831.Youngs is a company with a long heritage,and we are committed to building a business which nurtures and develops our people,respects the environment,and makes a lasting a
71、nd positive contribution to the communities we operate in.We recognise that operating sustainably is fundamental to delivering long-term value for all our stakeholders and for the future success of Youngs.Within our annual report,we have included our first sustainability report,detailing the many th
72、ings we have achieved so far and the steps we are taking to embrace a more structured approach to sustainability going forward.Its been a great start to the new financial year,for the last 13 weeks revenue was up 17.0%versus pre-pandemic levels of 2019 and up 38.5%for the last 5 weeks against 2021.O
73、ur well invested gardens were perfectly primed to maximise on the welcome sunshine for the Easter bank holiday,with some record takes.We look forward to the extended Jubilee weekend where we expect to break even more records.Youngs is well placed to manage the impact of the current inflationary envi
74、ronment on our cost base,with the ability to flex our menus,our utilities hedged until March 2024 and having recently renegotiated a large proportion of our drinks contracts.However we are mindful of the potential impact that this inflationary environment could have on consumer sentiment and ultimat
75、ely consumer spending.In April,we launched our exciting new beer range including a number of first-to-market products demonstrating that Youngs continues to be at the forefront of product innovation.Our investment programme continues at pace,with the transformational scheme at the Phoenix in Victori
76、a due to complete later this month.Also in May,we completed the freehold purchase of the Bedford Arms hotel in Buckinghamshire,extending the Youngs business into another new territory.Having announced my intention to step down as Chief Executive after six years in the role I am pleased to hand over
77、the reins to my successor,Simon Dodd,and the rest of the executive team,at the coming AGM in July.Simon was recruited three years ago with succession planning in mind,his excellent leadership skills,vision and operational experience will be great assets to Youngs.Its been 20 wonderful years at Young
78、s and I am leaving behind a fantastic business in a strong financial position ready for the next chapter.I am confident in Youngs proven strategy to deliver profitable returns for our shareholders.Patrick DardisChief Executive18 May 2022Strategic Report13Young&Co.s Brewery,P.L.C.|Annual Report 2022T
79、he Spread Eagle is less a transformation,and more a reincarnation of everything we love about the Great British pub.To step inside the Spread Eagle is to immerse oneself in the quintessential sights,ambiance and outstanding hospitality of a proper Youngs pub.Gleaning inspiration from her history,thi
80、s classic Victorian pub and hotel stands proudly in the very heart of Wandsworth and is reminiscent of the 18th century public houses of her past.A haven for foodies,the menu includes pub classics which are joyfully redolent of British dishes served in days gone by.Grade II listed and sensitively re
81、stored,the Spread Eagle houses 21 beautiful boutique bedrooms and showcases nostalgic,traditional features.The Youngs differenceStrategic Report14Young&Co.s Brewery,P.L.C.|Annual Report 2022Our strategyDelivering growth through our three strategic prioritiesThe circled numbers refer to Principal ris
82、ks and uncertainties on pages 40 to 43.Investing in our estateWe look to grow through a combination of investing in our existing pub estate,opportunity-led acquisitions and our people.Each year,on average,we reinvest about two-thirds of the cash we generate.Our progress in 2022 Our long-term strateg
83、y to maximise the potential within our tenanted estate through transfers to our managed division was epitomised by the investments at the Grand Junction Arms,Ship Inn and Spread Eagle.Further projects at the Kings Head,Chequers and Richard the First were all designed to offer a more premium trading
84、environment all year round.Our priorities for 2023 Our project at the Phoenix in Victoria remains onsite and is due to complete by the end of May.We remain committed to identifying opportunities to maximise the potential within our existing estate whilst ensuring that we maintain our premium standar
85、d in all pubs.30.4mInvested in our estate11 12Hand-picked acquisitions We invest in hand-picked acquisitions,based in locations where we feel our style of operation will thrive,as well as benefitting the surrounding area.All acquisitions have to pass our strict internal investment criteria.Our progr
86、ess in 2022 The exciting purchase of six pubs and hotels from the Lucky Onion group expanded our presence in the Cotswolds,whilst adding 73 hotel rooms to the estate.We acquired a further three premium pubs,the Bull,Pheasant and the White Horse,and purchased the freehold interest in the Lamb.Our pri
87、orities for 2023 Actions taken during the pandemic alongside the sale of the majority of our tenanted estate,puts us in a strong position to capitalise on opportunities that present themselves.In April we completed the purchase of the Bedford Arms,a freehold hotel in Buckinghamshire,a new Youngs ter
88、ritory.43.3mAcquisition investment11 12Investing in our peopleWe believe in investing in our people and nurturing our own talent,so they are able to continue to grow our businesses by surprising and delighting our customers.Our progress in 2022 The Ram App was launched,delivered by our e-learning pl
89、atform,and is designed to help internal networking,communication,training and health support.Fulfilled our strategy to recruit from within the business,successfully filling 75%of general manager positions with internal candidates.Our priorities for 2023 We will launch our fully interactive digital c
90、areer pathway in April 2022 to all teams and team members regardless of their role.Having successfully launched the Ram Agency in 2022,our aim is to have over 300 team members registered with the agency by the end of the year.25Current apprentices10 12 13Strategic Report15Young&Co.s Brewery,P.L.C.|A
91、nnual Report 2022We measure the development,performance and position of our business against a number of key performance indicators.The reference to an adjusted item means that the item has been adjusted to exclude non-underlying items.These alternative performance measures have been provided tohelp
92、 investors assess the groups underlyingperformance.*Results for 2022 are for continuing operations.2021 comparatives have been restated but 2020 figures are as reported at that time and have not been restated.Key Performance IndicatorsRevenue m*This is our group revenue,including both our managed an
93、d tenanted business.2020311.6202188.0309.02022Adjusted EBITDA m*This is our earnings before interest,taxes,depreciation and amortisation adjusted to exclude any exceptional items for the group.(See notes 11 and 12).79.6-1.382.5202020212022Gearing%This is our net debt divided by our net assets(expres
94、sed as a percentage).47.538.524.8202020212022Adjusted profit/(loss)before tax m*This is our profit/(loss)before tax from continuing operations only,adjusted to exclude any exceptional items for the group.(See notes 11 and 12).37.7-43.241.8202020212022Interest cover(times)*This is our adjusted operat
95、ing profit divided by our finance costs.5.4-3.45.4202020212022Adjusted earnings/(loss)per share(p)*This is our adjusted profit/(loss)after tax,divided by the weighted average number of ordinary shares in issue.(See notes 12 and 17).60.18-66.6356.26202020212022Recycling(tonnes)This is the amount of w
96、aste we recycle and divert from landfill.7,4584,3514,433202020212022Like-for-like revenue%This is our revenue movement for this period compared with the previous period for our managed pubs and hotels that traded throughout both periods.*Current year has been compared to 2020-2.4-72.1-2.9*2020202120
97、22RevPAR This is our revenue per available hotel bedroom;it is the average room rate achieved multiplied by the occupancy percentage.59.2329.6855.50202020212022Strategic Report16Young&Co.s Brewery,P.L.C.|Annual Report 2022Our menus are as varied as our venues,serving delicious seasonal food that is
98、sourced with a focus on British provenance.Our food is simple,with a focus placed on the quality of the ingredients and the execution of the cooking technique and craft.Our chefs take great pride in producing consistent,best in class,British,seasonal pub food that goes above and beyond in delighting
99、 our guests.The Youngs differenceStrategic Report17Young&Co.s Brewery,P.L.C.|Annual Report 2022ThisOur latest acquisitions Pheasant,Lambourn(below)Bordering the village of Shefford Woodlands and overlooking Berkshires famed Valley of the Racehorse,this beautiful country inn has a hospitality pedigre
100、e that stretches back 450 years.The 14 bedrooms are perfect for exploring local sights such as Highclere castle and the North Wessex Downs.Following a quiet period last year on the acquisition front,it has been extremely positive to add a number of exciting pubs and hotels to our growing managed est
101、ate.In total,we invested 36.8 million with the purchase of six assets from theLucky Onion group alongside three other single assets.Tavern,Cheltenham(above)This smart community pub,located in central Cheltenham,is renowned for its lively atmosphere and live music,making it the perfect place to meet,
102、eat and drink.White Horse,Hascombe(above)An attractive,award-winning 16th century pub located in a small village nestled amongst the Surrey Hills,an area of outstanding natural beauty.The terrace and beer garden are havens of tranquility a perfect spot to enjoy the sunset with the fantastic views ac
103、ross the fields.Bull,Ditchling(below and right)This historical building dates back to the 16th century and sits proudly in the heart of this East Sussex village.With panoramic views of the Sussex Downs and rustic charm by the bucket load,the Bull is the epitome of a country inn.Featuring six bedroom
104、s,the Bull is ideal for a countryside escape from the city.Strategic Report18Young&Co.s Brewery,P.L.C.|Annual Report 2022Wheatsheaf,Northleach(above)This historic 17th century coaching inn has 14 bedrooms with a combination of contempory touches alongside classic features.With roaring fires,beautifu
105、l gardens,and a private dining room,this Cotswolds gem is famous for its simple,rustic food made from local ingredients that showcase the best of the British countryside.Crown,Minchinhampton(below)Located just off the market square,this local favourite dates back some 300 years to 1715.The building
106、was used for public meetings for many years before becoming a beer house.George Hotel,Cheltenham(below)This 46 bedroom hotel in central Cheltenham is perfect whether visiting the Cotswolds on business or planning a romantic getaway.Its collection of boutique rooms cater for every budget,offering som
107、ething for everyone.No.38 The Park,Cheltenham(above)One of the best places for a weekend break in the Cotswolds,this beautiful Georgian townhouse is nestled in a leafy corner of Pittville,and just a stones throw from Cheltenham Racecourse.Strategic Report19Young&Co.s Brewery,P.L.C.|Annual Report 202
108、2How we have engaged with our stakeholders CustomersWhy?The companys biggest source of revenue is from customers in the groups managed houses(99.6%of total company revenue),with drink sales being 61.4%of managed house revenue,food being 34.5%,provision of accommodation being 4.0%and room hire being
109、0.1%.Lower revenue could lead to lower profits.A consumers decision to spend their money can be affected by a broad range of matters,all set against a background of consumer choice of where to go and what to do.See also principal risk/uncertainty 3 on page 41.How?See the Engagement with suppliers,cu
110、stomers and others in a business relationship with the company section within the directors report,starting on page 78.Outcomes and actionsSee the Engagement with suppliers,customers and others in a business relationship with the company section within the directors report,starting on page 78.Our pe
111、opleWhy?The commitment,skills and experience of the people employed throughout the organisation(whether they are in the companys pubs and hotels or at Copper House)are integral to the companys long-term success;amongst other things,all of them have a part to play in helping to continue to grow,and/o
112、r support,the companys business and in demonstrating the companys values on a daily basis.They are our most prized asset and staff retention is therefore crucial.Consequently,it is important that the company is an employer of choice,provides an environment in which people are happy to work,supports
113、the physical and mental wellbeing of its staff,and gives individuals the opportunity to develop.See also principal risk/uncertainty 10 on page 42.How?See the Employee engagement section within the directors report,starting on page 77.Outcomes and actionsSee the Employee engagement section within the
114、 directors report,starting on page 77,Our people section of the sustainability report starting on page 26 and Furloughing of staff below.The following describes how the directors have had regard to the matters set out in section 172(1)(a)to(f)of the Companies Act 2006 when acting in the way they con
115、sidered,in good faith,would be most likely to promote the success of the company for the benefit of its members as a whole.In line with guidance issued by the Financial Reporting Council,this statement concentrates on matters that are ofstrategic importance to the company.Where appropriate and to av
116、oid duplication,the statement cross-refers to other sections within the annual report.Principal stakeholder groupsThe directors regard those listed below as the companys principal stakeholder groups.Set out in relation to each group is:Why the directors believed it was important to engage with that
117、group(the Why?)The main methods used by the directors to engage with that group and to understand the issues that concerned that group(the How?)Information on the effect on the companys decisions and strategies during the period as a result of issues raised by that group(the Outcomes and actions)Sup
118、pliers Customers Our people Investors Lenders Trustees ofthe final salarypension scheme Section 172(1)statementStrategic Report20Young&Co.s Brewery,P.L.C.|Annual Report 2022 SuppliersWhy?The business relies,in the main,on a small number of suppliers to provide the companys pubs and hotels with food
119、and drink.The range,availability and quality of the products sourced is fundamental to the companys reputation.To remain as a provider of a market-leading,competitive premium offering that new and existing customers would want to enjoy,it is important that the company partners with the right supplie
120、rs,and has good,strong and mutually beneficial business relationships with them.80%of the companys spend is with 8%of its suppliers.See also principal risk/uncertainties 4 and 8 on pages 41 and 42.How?See the Engagement with suppliers,customers and others in a business relationship with the company
121、section within the directors report,starting on page 78.Outcomes and actionsSee the Engagement with suppliers,customers and others in a business relationship with the company section within the directors report,starting on page 78 and Re-tendering of our beer and spirits supply agreements below.Inve
122、storsWhy?Continued access to capital is of vital importance to the long-term success of the companys business.Via its engagement activities,the company strives to obtain investor buy-in to the companys strategy of how to grow the business and the companys business model setting out how value is crea
123、ted.The aim is to promote an investor base interested in a long-term holding in the company.See also principal risk/uncertainty 7 on page 41.How?See the Shareholder relations section within the corporate governance report,starting on page 65,for information on the companys main methods of engagement
124、 with investors.Outcomes and actionsThe companys investors remained supportive of the companys strategy and business model.LendersWhy?Lenders are an additional important source of capital.As it does with its investors,the company looks to get buy-in from its lenders to the companys strategy and busi
125、ness model.The intention is to develop supportive,long-term relationships.See also principal risk/uncertainty 7 on page 41.How?The chief financial officer regularly spoke with the companys banks and noteholders.Further,as required under the terms of the companys loan facilities,they received quarter
126、ly covenant compliance certificates.Outcomes and actionsThe companys lenders remained supportive of the companys strategy and business model.Following the return to more normalised trading conditions,discussions between them and the company returned to focusing on the companys material activities(in
127、cluding acquisitions and disposals particularly of its 56 tenancies)and any appetite to increase borrowings.Further discussion took place on the general trading environment due to the covid-19 pandemic.Particular discussion took place with Natwest on the covid-19 related 20 million RCF facility(whic
128、h was never drawn),with this facility not being extended past its first 6 month extension date and maturing at the of November 2021.Strategic Report21Young&Co.s Brewery,P.L.C.|Annual Report 2022How we have engaged with our stakeholders Section 172(1)statement continuedPrincipal decisionsFor the purp
129、oses of this statement,the directors regard their principal decisions as not only those that are material to the group,but also those that are significant to any of the companys principal stakeholder groups.Set out below are the principal decisions made by the directors during the period;implicit in
130、 making these was the desirability to maintain a reputation for high standards of business conduct and the need to act fairly as between members of the company.Consequences of the pandemicIn addition to what is set out in this statement,the strategic report(on pages 1 to 50)and the Employee engageme
131、nt section within the directors report,starting on page 77,provide further detail on various decisions and actions taken by the company in light of the pandemic.Approval of capital and revenue budget for FY2022/23The capital and revenue budget for FY2022/23 was approved by the board in March.In doin
132、g this,whilst the board were confident business would return to normal with the removal of covid-19 restrictions in line with the governments plans to live with and manage the virus,they acknowledged that there was still a degree of uncertainty.With the expectation that business will return to norma
133、l,the board believed that the companys premium offering would remain attractive to existing customers and act as a draw to new ones,the companys business model would allow the company to continue to invest in its people and pay them appropriately,and that capital would continue to be available to en
134、able selected hand-picked complementary acquisitions to be made.The companys plans,underpinning the budget,are demanding but will position the company well against its longer-term value creation vision whilst honouring its commitments to its stakeholders.Roger Lamberts retirement as an independent n
135、on-executive director;Aisling Meanys appointment as an independent non-executive director and the announcement that Patrick Dardis would be stepping down as chief executive and that he would be succeeded by Simon DoddIn July,Roger Lambert retired as a director of the company and in September,Aisling
136、 Meany joined the board as an independent non-executive director.In March,the company announced that Patrick Dardis would be stepping down as chief executive following the companys 2022 AGM and that he would be succeeded by Simon Dodd,the companys chief operating officer.Patrick will retire from the
137、 board at the end of September 2022.He will remain available to the company for the remainder of his notice period through to the end of March 2023.Further,inherent in all of these decisions was the balance between executive and non-executive directors,the importance of having at least three indepen
138、dent non-executive directors on the board,and the board having an appropriate number of members(with the right experience,knowledge,standards,skills,personal qualities and capabilities)for the company,its reputation and long-term strategy.Trustees of the final salary pension schemeWhy?The company op
139、erates a defined benefit pension scheme covering benefits payable to various current and former employees;the scheme was closed to new entrants in February 2003.The scheme is a key company financial commitment as it needs to be funded to meet agreed benefit payments and regulatory pension funding re
140、quirements.The schemes trustee is Youngs Pension Trustees Limited,a corporate trustee.The company recognises that the trustee and the company each has a vital role to play in the proper running of the scheme and that regular,clear and open communication and,where necessary,consultation is important
141、in helping maintain a good working relationship between the company and the trustee.The company is party to all scheme deeds,undertaking responsibilities under the schemes trust deed and rules together with pension legislation and regulation,as required.See also principal risk/uncertainty 6 on page
142、41.How?During the period,the chief financial officer worked closely with the trustee.The chief financial officer attended meetings with the trustee and delivered presentations on the companys business,thus keeping the trustee informed of the companys financial position and of any plans that would ch
143、ange or impact upon the employer covenant supporting the scheme.In addition,the chief financial officer was invited to join scheme investment discussions.The chairman of the trustee is a director of the company and gave presentations to the companys board on various aspects of the scheme.Outcomes an
144、d actionsDiscussions primarily focussed on funding,investment and employer covenant considerations,ensuring an integrated approach to risk management.Strategic scheme initiatives,such as the approach to liability management and minimising volatility,were discussed;these saw the trustee continuing wi
145、th a carefully designed strategy to manage liabilities and underlying scheme risk,all against the background of the schemes continuing maturity.The company was consulted on the schemes intended liability-driven investment(LDI)strategy and approved a revised statement of investment principles(reflect
146、ing the LDI changes and various technical changes,required by the regulator,to statements of investment principles from 1 October 2021),which led to an updated statement being signed,and it was regularly updated on scheme funding,membership changes and other key details.Other legislative development
147、s,such as the action to be taken as a result of the need for GMP equalisation,were progressed.The 2020 triennial actuarial valuation was signed off ahead of the statutory deadline(to provide greater certainty for the company,trustee and members on funding and security in the uncertain times caused b
148、y the pandemic).The trustees requested a discretionary increase for the year starting 1 April 2022.Overall,as a result of the companys engagement and the proactive appropriate stewardship of the trustee,stable contributions continued to be paid to the scheme(as has been the case for many years)and t
149、he company benefited from funding savings resulting from liability management initiatives.Strategic Report22Young&Co.s Brewery,P.L.C.|Annual Report 2022Furloughing of staffThe company chose to access the Coronavirus Job Retention Scheme during the first half of the year with a view to keeping as man
150、y members of staff employed until restrictions fell away and the companys estate fully re-opened.Re-tendering of our beer and spirits supply agreementsThe company re-tendered its beer and spirits supply agreements during the period.The new arrangements run from 1 April 2022 until the end of March 20
151、24.Interim dividend and final dividend in respect of FY2021/22Paying dividends remains an important priority for the board:it helps demonstrate the companys continuing ability to create and deliver long-term value for its shareholders.Although the company suspended dividend payments during the pande
152、mic due to,amongst other things,the extensive period of closure of the companys pubs and the lower levels of trade when they reopened.The board always intended to resume dividend payments as soon as it was appropriate.In November,the board announced that it would pay an interim dividend in December
153、2021.The payment was in line with an agreement with NatWest and its noteholders that any dividend payments during the companys financial year that started on 30 March 2021 would not exceed 5 million in aggregate.There is no restriction on the company recommending a final dividend with its results fo
154、r that year,and the company will recommend the payment of a final dividend to shareholders for the financial year ended 28 March 2022 at the companys 2022 AGM.Sale of 56 tenanted pubs In July 2021,the company announced the sale of most of its tenanted estate,which would allow the company to further
155、focus on operating well-invested,premium managed pubs and hotels.In all,56 tenanted pubs were sold to Punch Pubs&Co(“Punch”)for a total cash consideration of 53.0 million.The proceeds from the sale strengthened the companys balance sheet and will ensure that it has sufficient funds to invest further
156、 in its current estate and capitalise on any attractive acquisition opportunities.As the pubs were tenancies the disposals had no impact on any of the companys work colleagues except for three employees,one of which was redeployed within the business and two who chose to transfer their employment to
157、 Punch.Acquisitions of new managed housesDuring the period the company acquired the following freehold pubs and hotels as part of the groups managed house estate:the Pheasant(Lambourn),White Horse(Hascombe)and the Bull(Ditchling).The company also acquired six pubs and hotels from the Lucky Onion gro
158、up during the period:five of which were freeholds the Wheatsheaf(Northleach),No.38 The Park(Cheltenham),George Hotel(Cheltenham),Tavern(Cheltenham),and the Crown(Minchinhampton),and one leasehold the Hollow Bottom(Guiting Power).During the period we also acquired the freehold interest in the Lamb(Bl
159、oomsbury).Details of the consideration paid and the associated costs are set out in note 15 starting on page 113.The acquisitions were made to support the companys value creation acquisition strategy:right opportunities in existing or exciting new locations where the board believes the companys prem
160、ium offering will flourish.The purchases were financed from the companys cash reserves.Property disposals of the Lord Wargrave(Marylebone),the Grove House(Camberwell)and the Prince William Henry(Blackfriars)During the period,the company agreed to sell the Lord Wargrave(Marylebone)and the Grove House
161、(Camberwell)and agreed an early exit from its lease at the Prince William Henry(Blackfriars).These were tenancies and the disposals had no impact on any of the companys work colleagues.The challenges facing these pubs meant that their sustainability was in question;as such,in each case a sale was co
162、nsidered the appropriate approach and consistent with the companys strategy.Together,the pubs were sold for 2.4 million above their net book value see note 11 on page 111.Strategic Report23Young&Co.s Brewery,P.L.C.|Annual Report 2022This is the companys first sustainability report and it details the
163、 many things we have achieved so far and the steps we are taking to embrace a more structured approach to sustainability going forward.We have appointed our first sustainability manager and we are equally pleased that Aisling Meany has agreed to become the boards first designated non-executive direc
164、tor for ESG,supported by our company secretary.The board fully supports our evolving sustainability strategy and we look forward to updating you on our progress going forward.Our net zero approach The company is a founding member of the Zero Carbon Forum,a collective of hospitality businesses which
165、has created a Roadmap for Hospitality to Net Zero ahead of the UK Governments commitment of 2050.The company has aligned itself with the industrys roadmap which requires that,as a collective,we are committed to achieving net zero for our Scope 1 and Scope 2 emissions(our direct company emissions)by
166、2030 and net zero for our Scope 3 emissions(our supply chain emissions)by 2040.The roadmap is being driven by the Zero Carbon Forum and is designed to provide the hospitality sector with guidance on the steps we can take to decarbonise our business and implement a net zero strategy.We have engaged S
167、avills Earth to advise and support us as we develop our implementation plans and further information is available in the Our environment section of this report.Our approach to sustainability Youngs is a company with a long heritage,and we are committed to building a business which nurtures and devel
168、ops our people,respects the environment,and makes a lasting and positive contribution to the communities we operate in.The company has taken steps this year to formalise its approach so that in the short-term we will develop our decarbonisation pathway,plan our investments and set measurable targets
169、 so that the company can demonstrate the progress that is being made.We will continue to work with the Zero Carbon Forum and its members to share best practice,insights and thought leadership to drive progress.We have adopted a clear governance framework in which the board has oversight of our strat
170、egy,and the executive committee considers and implements operational initiatives and monitors their progress.The sustainability managers role is to provide leadership and ensure that we are taking a coordinated approach to sustainability throughout the business.As our sustainability programme develo
171、ps,we will be taking steps to put targets in place,backed up with ongoing monitoring and reporting systems to track our progress.“As a board we want to drive growth and deliver long-term value for all our stakeholders.We have a responsibility to do the right thing and a long tradition of implementin
172、g carbon saving initiatives throughout the business.”Patrick DardisChief ExecutiveSustainability reportStrategic Report24Young&Co.s Brewery,P.L.C.|Annual Report 2022We are excited by the opportunities but the challenges we face are complex.To realise our opportunities and address the challenges,our
173、sustainability programme focuses on three core areas:Our environment Aim to reduce,reuse and recycle our waste in the most sustainable way possible.Implement new emissions saving technologies across our estate.Work closely throughout our supply chain to improve the environmental impact of our produc
174、e,from farm to fork.Our communities Play a positive role in our communities and give back where possible.Celebrate the best of British and champion local suppliers throughout our menus.We do our utmost to support our suppliers and be fair commercial partners.Our people We focus on the wellbeing of o
175、ur colleagues with comprehensive financial and mental health support.Engage and empower our teams with regular communication and commitment to their career pathway.We foster diversity and inclusion through our approach to appointments and training.Strategic Report25Young&Co.s Brewery,P.L.C.|Annual R
176、eport 2022Our people are at the heart of everything we do,we strive to develop them and provide well-rounded hospitality careers.By offering the chance to build skills and earn qualifications,we empower our people to reach their career goals.We champion diversity and inclusion,and we have a well-est
177、ablished team member wellbeing programme.The Youngs difference Our peopleStrategic Report26Young&Co.s Brewery,P.L.C.|Annual Report 2022Training and development The companys career pathway is used to engage,inspire,and develop our teams.Beginning at team member level the career pathway offers a broad
178、 range of development opportunities for our front of house teams,through to general manager level and then on to operations manager.We also have a comprehensive programme for our kitchen teams,and we are proud that our kitchen assistants have the opportunity to develop into our head chefs of the fut
179、ure.Historically,the career pathway has been completed in paper workbooks within the pubs,but after undergoing a comprehensive project to streamline our training during the period,the company will be launching the digital career pathway in May 2022.It will be available to all teams throughout the bu
180、siness and it will be fully interactive and flexible across job roles.It will also mean we are completely paperless,which is a huge cost saving to the business and follows our sustainability strategy.The career pathway will be delivered digitally via the The Ram App or a desktop version which can be
181、 accessed through an internet browser.We expect the benefits of the digital career pathway to increase engagement,team development and retention.Making the career pathway digital also means that we have management information at our fingertips,helping us to identify key talent for succession plannin
182、g.There is also training and development courses available to general managers and their support teams and the company also offers apprenticeships at Commis Chef Level 2 and Hospitality Supervisor Level 3.Internal succession We aim to promote internal succession above external recruitment and suppor
183、t our teams in achieving this objective.The companys Y factor sessions are run by operations managers for all our new starters.It is an inspirational day to finish off their induction into Youngs where we share our heritage,culture and company values.Starting with our career pathway,internal success
184、ion within Youngs remains one of our key strengths.Offering our teams a career,not just a job,means we are able to retain talent within the business,many of whom go on to run our pubs and kitchens.In the last year 75%of our general managers were internal appointments.Many have been promoted from dep
185、uty manager level or are general managers moving to a more challenging pub.This also extends to our kitchen team where 35%of our head chefs were internal appointments from sous chef level or head chefs progressing to another pub.As a result of our career pathway,the company has many examples of staf
186、f who have progressed through our programmes and are now in leadership roles within the business and we have included some case studies in this report.Realising and developing potential Emma Dickinson,Head of Customer MarketingIn 2008 Emma joined the company on a part-time basis,working evenings and
187、 weekends at The Ship,in Wandsworth.The general manager quickly realised Emmas potential and she was appointed as the pubs first sales and marketing coordinator,launching The Ships popular social media channels.In 2011,she was invited to join the marketing team as a marketing and events manager,resp
188、onsible for establishing a team of sales and marketing coordinators.She then joined the companys Career Development Programme in 2015 and since then she has gone from strength to strength,and in 2019 she was appointed head of sales,and in 2021 she became head of customer marketing,developing inspira
189、tional campaigns which support the companys operational business plan goals.Supporting employees to realise their career goals Anthony Murray,Management AccountantAnthony started his career with Youngs in 2013 as a team member at the Fentiman Arms.After making the most of his opportunities to develo
190、p,he moved through the ranks as supervisor,then assistant manager before being appointed deputy manager.He then joined the Management Academy,and consolidated his experience over the next 18 months.In 2017 he was appointed as a general manager.After reflecting on his strengths,he decided to seek an
191、opportunity within the finance function of Youngs with the goal of becoming a chartered accountant.The company sponsored his training for the ACCA qualification and after two years of study he qualified at the end of 2021 and moved into a new role as a management accountant in early 2022.Strategic R
192、eport27Young&Co.s Brewery,P.L.C.|Annual Report 2022Our people continuedEmployee involvementThe importance of good communication with our teams is fundamental to the continued success of the company.We take great care to ensure that all employees are kept well informed of developments within the busi
193、ness throughout the year.The company continued to evolve and enhance its engagement with employees which included the use of Zoom,social media and the launch of a monthly digital company magazine.Social media played a key part in ensuring employees were up to date with developments through periods o
194、f closure.During these periods,the Keeping in Touch at Youngs Facebook page was used to provide updates on general arrangements,address queries from employees and to publish video messages from our chief executive.The Facebook group encouraged engagement and interaction across all levels of the work
195、force and across all locations.Once the pubs and hotels re-opened,employees were encouraged to use The Ram App,delivered by the companys e-learning platform,to access the Discover and Keeping in Touch pages,the latter replaced the Keeping in Touch at Youngs Facebook page when it was deactivated.The
196、company relaunched The Ram Pages during the year as a monthly digital magazine which has proved very popular with our teams.It features team contributions and updates,new acquisitions,pub re-developments,recipe inspirations and much,much more.We also engage with our employees and their representativ
197、es through the companys information and consultation committee.This committee works to enhance communications within the company,supplying information and giving opportunity for feedback and consultation.It improves employee awareness and involvement and supports ongoing improvements within the busi
198、ness.Please see page 77 of the Directors Report for further details of the workings of the information and consultation committee.Employee health and wellbeing The health and wellbeing of our employees is vitally important to us.We aim to create safe and healthy working environments where employees
199、can thrive and continue working with us.Our well established wellness projects cover physical,mental and financial wellbeing.The pandemic has led to an even greater focus on mental health and wellbeing.We have worked hard to build an in-house team of mental health first aiders and mental health firs
200、t aid champions who support their colleagues across the business.We launched the How are You?page on the Ram App which 5,275Employees(2021:4,185)75%Of our general manager vacancies were filled internally(2021:86%)Structured training and development Matteo Perra,Divisional Executive ChefMatteo starte
201、d his career at Youngs as a kitchen porter in 2012.It was not long before the chef team realised his potential and they trained him to run a section of the kitchen in busy times.In less than four years,after participating in the companys structured chef training programme he was appointed as head ch
202、ef.Becoming part of the food team became Matteos next goal and after completing the Hospitality Supervisor Level 3 programme,he was promoted to divisional executive chef.He now has responsibility for a division,helping and supporting heads chefs develop their menus.provides a variety of content to h
203、elp with mental and physical health as well as fun activities for employees to do outside of their working day.We also work with The Burnt Chef Project,which was setup in 2019 with the sole intention of eradicating mental health stigma within the hospitality industry.We offer a range of their resour
204、ces via the How are You?page on the Ram App,such as the Going Home Checklist,Wellness Action Plan and The Burnt Chef Journal Podcast.These resources help raise the profile of mental health within the company and provide tools to enable employees to monitor their mental state and help managers improv
205、e their employee conversations.We offer counselling for those in need of someone to talk to.This includes fully funded,confidential,one-to-one counselling sessions with a qualified professional.Our employees also have access to a 24/7 free confidential telephone counselling service.By using alternat
206、ive mechanisms such as FaceTime and WhatsApp chat,this support was available throughout the year.Strategic Report28Young&Co.s Brewery,P.L.C.|Annual Report 2022The company continued to partner with Salary Finance to offer free support and advice to employees to help them live healthier,happier lives
207、through the current and future financial decisions they make.Working with Salary Finance,we run a financial support programme aimed at helping our staff get out of any financial difficulties they may find themselves in,by offering affordable loans which give staff access to their salary as it is ear
208、ned.During the period,over 250 employees sought their help and advice,and several employees took advantage of the loan and debt support they provide.We continued to provide information about a range of topics,including the support available to employees from the Licensed Trade Charity,who provided f
209、inancial grants of more than 1,400 to our team members during the period.Flexible working The Ram Agency There is a growing desire for flexible working and achieving a work-life balance.In order to cater for this,we launched our own internal recruitment platform in August 2021,which aims to give reg
210、istered employees the power to pick their own working hours.They can view shifts online and build their own rota to suit their lifestyles.Shifts are available daily across our estate of 222 managed pubs and prospective staff can apply online.The platform has given us access to a new pool of people:s
211、tudents,actors,travellers,parents and many more who would be unable to commit to permanent employment.We are proud of the agencys success.Over 130 employees are registered,split evenly between our front and back of house teams,and over 800 shifts were filled by the agency in March 2022.Our aim is to
212、 have over 300 employees registered with the agency by the end of FY23.Diversity and inclusion It remains our commitment to ensure that every team member is treated with fairness,dignity and respect and has access to the same rewards and opportunities.This supports and underpins our sustainability c
213、ommitment to our teams.Diversity and inclusivity influence our policies and culture at all levels throughout Youngs;we are fully aware that everything we achieve as a business we achieve through the dedication and efforts of our teams.We are focused on the recruitment and development of the best tal
214、ent and we do not discriminate based on gender,race,ethnic origin,disability,sexual orientation,religion or belief,marital status or age.We employ the best person for the job,developing our talent internally to promote from within.The importance of diversity is acknowledged in making any appointment
215、 as well as employees subsequent training,career development and promotion.The board believes that all appointments should be merit-based against the selection criteria created for each role.Gender pay gap The companys mean gender pay gap is 13.4%and median gender pay gap is 5.3%,which remains subst
216、antially better than the national average median gender pay gap of 15.4%(National Office of Statistics Annual Survey of Hours and Earnings 2021).As we look to the future,it remains our commitment to ensure that every team member is treated with fairness,dignity and respect and has access to the same
217、 rewards and opportunities.This supports and underpins our sustainability commitment to our teams.The groups full gender pay gap report is available on our website.800Shifts filled by The Ram Agency(March 2022)5.3%Median Gender Pay Gap(National Average:15.4%)Gender diversity The advancement of women
218、 in the workplace remains vital to Youngs ongoing success and we want to ensure that women have access to every opportunity in order to progress to top roles.The board has started the process to recruit a further female independent non-executive director,which will increase female board representati
219、on to 30%by the end of FY23.Board(%)Leadership team(%)All employees(%)2278MaleFemale4456MaleFemale44.555.5MaleFemaleStrategic Report29Young&Co.s Brewery,P.L.C.|Annual Report 2022We are delighted that our new head office Copper House in the heart of Wandsworth has been built to BREEAM excellence stan
220、dards.This demonstrates that the new development has maximised the potential for improvement in energy efficiency to its existing building areas and has also exceeded compliance within the new build elements.The BREEAM excellent rating is achieved by only the top 10%of new non-domestic buildings in
221、the UK.The Youngs difference Our environmentStrategic Report30Young&Co.s Brewery,P.L.C.|Annual Report 2022Although we have achieved a lot in recent years,the results are difficult to measure,and we have taken steps that will enable us to strengthen our governance framework to support our sustainabil
222、ity strategy as it evolves.Net zero carbon pathwayThe development of a net zero carbon pathway is a significant task and we want to do it properly.We have realised that before we set targets,we need to know more about our properties so that we can identify the actions that need to be taken,plan our
223、approach and phase our investments.As a result,we have engaged Savills Earth to advise and support us on this journey and we have agreed the following phased approach:Phase one:to review our baseline carbon assessment and benchmark carbon emissions for each property to sense check results.Phase two:
224、Our Net Zero Carbon Pathway Development:this involves grouping our properties into categories based on building age,condition,servicing and heritage status.From that we will develop net zero implementation plans for each category and set out a timeline of interventions.This will enable us to establi
225、sh an overall pathway to net zero for our properties.Phase three:the final phase is the setting up of ongoing monitoring and reporting.We appreciate that net zero reporting and frameworks require regular verification and disclosure so that the company can demonstrate progress against its carbon redu
226、ction targets.We have just completed phase one of the project and we expect phase three to be well progressed by the end of FY23.Sustainability frameworksWe will review the various sustainability frameworks as we work through phase three of the above project so that we can identify the frameworks th
227、at are most relevant to our business.We will also assess our alignment with the UN Sustainability Development Goals.The challenges we face The cost the required investment will need to be phased and we are conscious that some technology is not yet fit for commercial use.We will work with suppliers,c
228、ollaborate with our peers and monitor the development of the relevant technologies,run trials where appropriate and adopt in line with our investment cycle,as the costs reduce,and the stability of the technology improves.Statutory building restrictions listed building status and conservation areas r
229、epresent a significant challenge,bearing in mind that 40%of our pubs have listed status.We will work with Savills Earth,our suppliers and statutory authorities to identify potential solutions to these challenges.Availability of energy resources we continue to work with energy suppliers to identify i
230、nfrastructure improvements which will help us move to sustainable forms of energy,this includes new on-site electrical substations where the site layout allows for this addition.Remote pub locations they can provide significant challenges for carbon reduction.We are working with energy suppliers to
231、try and upgrade the infrastructure into these properties where the supply is capable of being moved to a carbon efficient model.Our performance so farTotal net emissions(tCO2e)202016,97420218,4308,7182022Please see page 35 for more details.This year,as part of our sustainable journey,we now source 1
232、00%of our power renewably from our group energy contract.Green electricity is dual reported in line with SECR requirements.We have also established FY2019/20 as a base year.We are passionate about reducing our emissions and we have a long tradition of introducing carbon saving initiatives throughout
233、 our estate.However,we understand that we need to adopt a more structured approach,so that we are in a position to set targets that can be accurately measured and assured.This will enable our stakeholders to monitor our progress and have confidence in our performance.Strategic Report31Young&Co.s Bre
234、wery,P.L.C.|Annual Report 2022BACK OFFICECELLARPUBKITCHENHOTEL361425The Youngs differenceThe sustainable Youngs pub The illustration above provides an overview of the key features that have been incorporated or are being rolled out to our existing estate and represent the 2022 edition of the sustain
235、able Youngs pub.Strategic Report32Young&Co.s Brewery,P.L.C.|Annual Report 2022Our vision is to have an estate of sustainable pubs and hotels and we are working to identify a pub within our estate which will be our flagship sustainable pub.This pub will be a test bed for sustainability initiatives an
236、d will be used to trial the latest ideas and develop new initiatives which can then by adopted throughout our whole estate.We will update you on our progress each year in this report as our sustainable pub evolves and the company embraces new ways of working,technology and the latest thinking.1 Buil
237、dings energy management system(BEMS)We are partnered with Forest Rock,a UK based software company which has developed solutions for the internet of things,to launch a BEMS platform called MyBuildings.Live.This platform will give us valuable insight into the performance of our buildings and assets.By
238、 monitoring and controlling those assets we aim to reduce energy consumption and improve operational costs.Currently we have 14 BEMS sites online,with a further 60 planned for FY23.2 Renewable energyFrom 1 April 2021,100%of our electrical supply began to flow from renewable sources from our group en
239、ergy contract,powered entirely by hydro and wind energy.Our supply is backed by renewable electricity guarantees of origin and independently verified by EcoAct,a Carbon Disclosure Project accredited provider.This has reduced our carbon emissions,see page 31.3 Recycling and waste We have implemented
240、comprehensive recycling arrangements throughout our estate.99%of pubs have glass recycling and 94%have a dry mix recycling scheme.For many years we have been partnering with Olleco,on a successful initiative to recycle used cooking oil to produce biodiesel.In total 334,325 litres were collected duri
241、ng FY22.The food waste collected from our pubs is sent to anaerobic digestion plants where it is used to produce biogas for combined heat and power units providing renewable power and heat.Whats leftover in this process is used as a biofertilizer by farmers.Our non-recyclable waste is sent to refuse
242、-derived fuel plants where it is sorted,shredded and turned into fuel pellets for use as a fossil fuel substitute in kilns,steel furnaces and cement and lime plants.4 LED lightingSince 2018 the company has been committed to installing LED lamps throughout our existing pub estate and new developments
243、.Year-on-year we continue to rollout our LED replacement programme to ensure our estate is fully LED compliant,mitigating lamp failures and retaining our own high standards.At the end of the period over 95%of our estate had LED lighting installed.5 Cellar managementWe continue to invest and upgrade
244、our cellars.The companys cellar energy management programme incorporates the installation of Eco Flo to beer dispense units which enables us to control cellar cooling.The reduced energy consumption is estimated to save around 160 per year,per cooler and there are typically two or three coolers per s
245、ite.At the period end,41 pubs had Eco Flo installed.6 Waterless urinalsWe will continue to invest in waterless urinals which we incorporate into all major capital expenditure investments.There are currently 68 sites with waterless urinals with a further 37 planned for FY23.It is estimated that this
246、programme already provides water savings of 37,950m per annum.100%Electricity from renewable sources through our group energy contract(from 1 April 2021)334,325 litresCooking oil recycled for biodiesel(2021:112,783 litres)The Youngs difference Decarbonising our company car fleetIn 2020 we introduced
247、 a policy of only allowing replacement orders for hybrid or electric cars to be placed.At that time over 59%of the fleet comprised petrol or diesel vehicles.By the end of the period 82%of cars were hybrid or electric.Replacement orders have been placed for the remaining 18%but due to supply chain is
248、sues delivery can currently take up to 18 months.202282%41%2020Strategic Report33Young&Co.s Brewery,P.L.C.|Annual Report 2022Our environment continuedWhats next:The net zero carbon pathway project,it is the overarching environmental workstream for FY23.This project will enable us to validate our roa
249、dmap,plan and phase our investments and define measurable short-,medium-and long-term targets that can be validated.We will also implement a number of other key initiatives during FY23,including:The overnight initiativeWorking in partnership with the Zero Carbon Forum,the company will launch the Sav
250、e While You Sleep campaign in May 2022.This initiative aims to tackle operational teams behaviour and raise awareness of energy savings opportunities simply by switching off non-essential equipment,such as bar fridges,overnight.We estimate that this could save over 3%of our operational carbon emissi
251、ons,as well as helping us to reduce our energy costs.Sustainability champions Every pub will have a designated sustainability champion who will promote new initiatives and raise the profile of sustainability throughout our estate.Our new sustainability manager will use this network to share ideas an
252、d communicate new initiatives.Electronic vehicle(EV)chargersWe are currently trialling EV chargers in three of our pubs and a rollout programme is being planned for FY23.Responsible refurbishmentsWe will work with our consultants,building contractors and key suppliers to scope and develop a sustaina
253、ble refurbishment policy which will incorporate a minimum level of sustainability into every refurbishment.This will involve,amongst other things,a review of material sourcing,construction methods and the equipment and furnishing supply chain.This policy will evolve over time and the minimum level o
254、f sustainability will rise as more and more sustainable practices are incorporated into the companys investments as we work to achieve our net zero targets.Patio heatersAll new patio heaters provided to our gardens will be electric and incorporate timers or controlled sensors.We have implemented a p
255、rogramme to replace all existing gas heaters with electric heaters,as far as reasonably practicable,by the end of FY23.Recycling and waste We will build on the great work achieved to date and work to raise the profile of recycling and waste management throughout the business.We will start a project
256、to identify short and medium-term targets for recycling and waste that can be appropriately measured and validated.Zero Carbon ForumAs one of the founding members of the Zero Carbon Forum we will continue to actively engage and participate,helping to shape the hospitality industries approach to sust
257、ainability.Produce We offer best in class seasonal British food and drink.Our menus are crafted using the finest ingredients,90%of which are sourced in the UK.We are passionate about seasonal food and we change our menus quarterly so that they include the latest seasonal ingredients.During the perio
258、d we began a food supply chain optimisation project,with our key supplier Menu Partners,which has led to a number of benefits:we have implemented efficiency measures and reduced our costs.the number of deliveries to our pubs has reduced by over 86%,from circa 5,601 deliveries per week to 783.We esti
259、mate this to be equivalent to more than 400 tonnes of carbon reduction per year.there has been a reduction in the amount of packaging waste at site level and deliveries are now paperless.we will continue to work in partnership with our suppliers in order to achieve our target of a carbon neutral foo
260、d supply chain by 2040.Our environmental targetsShort-term targetsMedium-and long-term targets2024202420302040Petrol and diesel cars will be eliminated from the car fleet by the end of FY24.All unnecessary single-use plastics will be eliminated from our front of house operations by the end of FY24.T
261、he company has aligned itself with the Zero Carbon Forums roadmap for the industry which requires that,as a collective,we are committed to achieving net zero for our Scope 1 and Scope 2 emissions(our direct company emissions)by 2030 and net zero for our Scope 3 emissions(our supply chain emissions)b
262、y 2040.Strategic Report34Young&Co.s Brewery,P.L.C.|Annual Report 2022We work closely with our key suppliers and monitor their sustainability practices.This will be an area of increasing focus going forward as we calculate our Scope 3 emissions and work with our suppliers and the broader hospitality
263、industry to reduce their emissions in line with our net zero targets.We are working with our advisors and our energy consultants to calculate our Scope 3 emission base line,which we will disclose in the FY23 report and accounts.We are also members of the Sustainable Restaurant Association and the co
264、mpany has been awarded a best in class three star rating.This year,as part of our sustainable journey,we now source electricity from renewable sources through our group energy contract.Green electricity is dual reported in line with SECR requirements.We have also established FY2019/20 as a base year
265、.The following methodologies were used to calculate the above quantities:the kWh consumption figures relevant to gas,electricity,district heating(i.e.a system for distributing heat generated in a centralised location through a system of insulated pipes for residential and commercial heating requirem
266、ents such as space heating and water heating)and district cooling(i.e.a system working on broadly similar principles to district heating but delivering chilled water to buildings needing cooling)were taken from invoices received by the group1 the kWh figures were then converted to tCO2e figures usin
267、g the then current conversion factors published by DEFRA;the consumption figures relevant to propane were taken from invoices received by the group1 these were either in kilograms or litres delivered and were then converted to kWh and tCO2e using the then current conversion factors published by DEFR
268、A;and the consumption figures relevant to transport were calculated using expensed mileage figures to calculate tCO2e for company cars,the group then used the car manufacturers gCO2/km data and increased this by 38%per guidelines issued by DEFRA to calculate tCO2e for mileage completed in other cars
269、,the conversion was made using figures for an average car per guidance issued by DEFRA in each case,the resulting tCO2e figures were then converted to kWh using the then current fuel conversion factors published by DEFRA where the fuel type used was unknown,it was assumed to be diesel in line with g
270、uidance published by DEFRA.Our approach to the taskforce for climate-related financial disclosures(TCFD)We welcome the introduction of TCFD and recognise the impetus this will provide for companies and stakeholders to understand relevant climate-related risks and to ensure that appropriate managemen
271、t processes are in place to mitigate them.During FY23 we will develop our understanding of the requirements and assess the actions we need to take in order to ensure that we are prepared for our first disclosure in our FY24 report and accounts.202220212020Revenue in million309.090.6311.6No.of manage
272、d houses at the year-end219120207The annual quantity of emissions in tCO2e resulting from activities for which the group was responsible involving(i)the combustion of gas or(ii)the consumption of fuel for the purposes of transport8,4306,3238,247The annual quantity of emissions in tCO2e resulting fro
273、m the purchase of electricity by the group for its own use,including for the purposes of transport8,2342,1078,727The annual quantity of energy consumed in kWh from activities for which the group was responsible involving(i)the combustion of gas or(ii)the consumption of fuel for the purposes of trans
274、port,together with the annual quantity of energy consumed in kWh resulting from the purchase of electricity by the group for its own use,including for the purposes of transport80,403,03543,132,02778,613,804Total Gross Emissions(tCO2e)16,6648,43016,974The groups annual emissions:ratio of tCO2e(gross)
275、per million of revenue53.93:193.05:154.47:1Carbon offsets procured via Green Electricity Tariff(7,946)Total Net Emissions(tCO2e)8,7188,43016,974The groups annual emissions:ratio of tCO2e(net)per million of revenue28.21:193.05:154.47:11 Where data was missing,values were estimated using an extrapolat
276、ion of available data.Greenhouse gas emissions,energy consumption and energy efficiency actionIn this section of this report:“DEFRA”means the Department for Environment,Food and Rural Affairs;“kWh”means kilowatt hours;and“tCO2e”means tonnes of carbon dioxide equivalent.Strategic Report35Young&Co.s B
277、rewery,P.L.C.|Annual Report 2022The Youngs difference Our communityOur pubs are at the heart of their communities and play a pivotal role in bringing people together.We continue to create places that make a lasting and positive contribution to the communities that we operate in.The stop-start nature
278、 of the last two years has brought into focus the wonderful role our pubs play within their respective communities.We take great pride in fulfilling our role as a key hub,whether it is combatting loneliness through the Alexandras Meetup Mondays,hosting a knitting group or a local farmers market.All
279、this was encapsulated in our short film,A House is Not a Home,which reaffirms pub culture as an integral part of British life with the messaging that pubs,like homes,are so much more than just bricks and mortar.Pubs unite people and communities and are where memories are made.Strategic Report36Young
280、&Co.s Brewery,P.L.C.|Annual Report 2022The desire to give back to our communities is an integral part of our identity.We will continue to encourage our pubs to support local causes,but we will also consider what central and divisional approaches we can adopt in partnership with charities that work c
281、losely with the hospitality industry.We are also using our flexible recruitment platform,The Ram Agency,to help Ukrainian refugees who are looking for flexible working arrangements.We have recruited an English speaking Ukrainian,whose role is to reach out to Ukrainian refugees and offer them opportu
282、nities either within The Ram Agency or directly with pubs who are recruiting.The company has also registered its interest through UKHospitality in the Ukrainian Humanitarian Support Scheme.Many of our pubs have staged fundraising events and collected food and clothing to be transported to Ukraine.Ra
283、ther than adopting a central or divisional approach during the period,our head office and pub teams staged a range of events to support both local and national charities which included:Fish Neighbourhood Care,Only a Pavement Away,Battersea Dogs and Cats Home,Noahs Ark Childrens Hospice and The Royal
284、 Marsden Hospital.Battersea Dogs&Cats HomeThe Bear,Oxshott organises an annual dog walk which brings the local community together.At least 60 people attended this years walk which raised over 1,000 for the charity.Dallaglio Rugby Works The Alma,Wandsworth hosted a rugby huddle to raise money for thi
285、s charity which mentors young people to help them re-assess their lives,focus on developing key life skills and ultimately be equipped to get into sustained education,employment and training.The event raised over 8,000 for the charity.Noahs Ark Childrens HospiceA number of our pubs in North London o
286、rganised charity events,including a beer barrel roll,a skydive and during the period a charity row along a section of the River Thames,to support this local childrens hospice.In all,these activities have raised just under 30,000,which is the equivalent of the annual salary of a hospice nurse.Only A
287、Pavement Away This charity acts as a conduit between forward-thinking hospitality companies and charities which work with people facing homelessness,prison leavers and veterans.It helps them find jobs within the hospitality industry.We were one of 20 hospitality companies who participated in a chari
288、ty football tournament which raised over 4,000 for the charities.Strategic Report37Young&Co.s Brewery,P.L.C.|Annual Report 2022The Youngs difference Why plant?As the festive period of indulgence ends,January can bring a more mindful approach to eating and drinking.During“dry January/Veganuary”our fo
289、cus shifted to Why plant?complemented by an interesting non-alcoholic range of cocktails,beers and adult soft drinks.Strengthening the focus through Burger Shack to raise the profile of the companys vegan offer,January saw our first ever collaboration with celebrity chef,BBCs Dirty Vegan,Matt Pritch
290、ard,to launch the Pritchard Dirty Vegan monthly special burger across all Burger Shacks.CustomersLooking after our customers is central to everything we do.Our pubs are highly valued and are integral to the communities in which they operate.We provide a relaxed and safe environment where friends and
291、 families can spend time together.Our focus on responsibly sourced,seasonal and local British produce lends itself to nutrient dense food that tastes delicious.As customer tastes and eating habits and styles have evolved,we have enthusiastically adopted more plant-based options on our menus,througho
292、ut our estate.This is embodied by our Burger Shack menu which is 50%plant based and includes the Classic Plant burger patty,and vegan CHKN katsu fillet.Every pub must include at least one vegan and one vegetarian dish on their menus and many offer a number of dishes.Our newly opened Food Development
293、 Learning Centre at Copper House provides the right environment for our chefs to experiment and innovate using seasonal ingredients to create new dishes for evolving customer tastes.Our suppliersDespite our proud origins in the London Borough of Wandsworth,our geographical reach has grown,and with i
294、t our enthusiasm for local food and drink suppliers that celebrate the best of British wherever our pubs reside.Where appropriate,we fully encourage our pubs to explore their individuality and support local businesses,from nearby breweries and distilleries.We are proud to have always done our best t
295、o ensure suppliers received payments in a timely manner for the wonderful produce they provide.We will continue to work with our suppliers to develop joint initiatives and provide positive social and environmental messages to share with our customers and wider stakeholders.These initiatives range fr
296、om commitments to use electric and/or hydrogen vehicles in urban operating areas,reducing packaging waste and implementing paperless deliveries.Our community continuedThe Youngs difference Partnering with our suppliersIn January we partnered with Pernod Ricard UK,who pledged a 50p charitable donatio
297、n for every Plymouth Gin and Tonic served across our pubs in Spring 2022,highlighting the sustainability credentials of Plymouth and raising 20,000 for the Ocean Conservation Trust to continue their work protecting our oceans.90%Of our ingredients are sourced from the UK86%Reduction in number of wee
298、kly deliveries(From 5,601 to 783)We continue to support Drinkaware,whose campaign promotes responsible drinking.All front of house team members are trained on our responsibilities,which are covered within our Award for Licensed Premises Staff training module.Today more than ever,our customers expect
299、 an interesting soft drink range when visiting our pubs.We have put a lot of thought and care into our premium soft drink offering and our range includes a selection of delicious low sugar,non-alcoholic drinks,to suit all needs.A number of which are must stock items in our pubs under our soft drink,
300、no and low stocking policy.Allergy notices are included on all our menus inviting customers to discuss their needs with us,and from early April 2022 calorie information was also included.Strategic Report38Young&Co.s Brewery,P.L.C.|Annual Report 2022The Youngs difference Bringing our ingredients to l
301、ifeWe source the freshest and best ingredients locally to support our community of producers,reduce the carbon impacts of our supply chain and deliver the highest quality for our customers.Our wild garlicForaged on the Queens Sandringham estate,our wild garlic will be found throughout our menus duri
302、ng the summer months.Working sustainably,Martin Denny has been foraging for over 20 years,taking only the leaves or parts of the plant he needs and leaving nothing uprooted.There are no pesticides,no chemicals and no added extras.The whole process from plant to plate is about as natural as it gets a
303、nd,with no machinery or packing houses,he is able to dramatically reduce his carbon footprint.Our asparagusThis year for the first time ever,we have been able to partner with an Oxfordshire farmer and establish our very own three-acre asparagus field solely for use on Youngs menus.Asparagus crops ar
304、e one of the most sustainable crops grown in the country with most crops left to their own devices for up to ten years in the same spot,the spears regrow and regrow,season after season,without the need of replanting like most other crops.Strategic Report39Young&Co.s Brewery,P.L.C.|Annual Report 2022
305、The principal risks and uncertainties facing the group are listed below.It is not an exhaustive list of all significant risks and uncertainties;some may currently be unknown and others currently regarded as immaterial could turn out to be material.Further information on the groups financial risk man
306、agement objectives and policies are set out in note 26 starting on page 123.Risk/uncertaintyPotential impactMitigationChange in risk/uncertaintyMajor external event leading to widespread pub closures and/or a huge decline in demand1.An example of this is the spread of a disease recent experience has
307、 shown the potential for something like this to have far-reaching and unexpected consequences for our business.As the covid-19 pandemic has spread around the globe in the last two years,some of these consequences became apparent and resulted in a very material and unforeseeable impact on our busines
308、s.This will depend on the nature of the event,its impact and reach and the reaction to it by the Government,consumers,business and others.This will depend on the nature of the event,its impact and reach and the reaction to it by the Government,consumers,business and others.Our strong balance sheet a
309、nd excellent teams enable our strategy of operating a diverse,premium,well invested pub estate and allow us to rise to challenges thrown our way.The recent covid-19 pandemic has given us the experience to ensure we are better placed to combat any future major event resulting in widespread pub closur
310、es Climate change and sustainability2.Extreme weather,climate action failure and human-led environmental damage continue to top the list of the worlds highest risks with regulations,government interventions and enhanced emissions reporting obligations expected to continue to increase.The groups cust
311、omers,employees and investors are increasingly demanding reassurance that we are managing the climate change risk across our business activities.The increased occurrence of extreme weather events,regulations,government interventions,reporting obligations and our inability to meet climate change targ
312、ets could reduce revenues and profits.Failure to address these risks could impact trust and reputation amongst customers,employees,investors and other stakeholders.We are developing a comprehensive sustainability strategy and the board is committed to achieving net zero for operational emissions by
313、2030(Scope 1 and 2 emissions).We are working with external ESG advisors to develop a pathway to net zero which will enable us to phase the required in-vestment and identify short-,medium-and long-term measurable targets,so that our stakeholder can monitor progress.For further details see our ESG rep
314、ort on pages 24 to 39.Principal risks and uncertaintiesKey to change in the risk/uncertainty level from the prior period Decrease No change IncreaseStrategic Report40Young&Co.s Brewery,P.L.C.|Annual Report 2022Risk/uncertaintyPotential impactMitigationChange in risk/uncertaintyConsumer-related3.Our
315、revenue is largely dependent on consumer spending within our managed estate.A consumers decision to spend their money can be affected by a broad range of matters including those set out in 1),confidence in the UK economy,inflation,the weather and greater awareness of the potential adverse health con
316、sequences associated with alcohol)set against a choice of where to go and what to do.A reduction in our revenue could result in lower profits.Our pubs and hotels are mainly spread throughout London and Southern England,with the majority inside the M25.Through them,we provide a hospitable and welcomi
317、ng home from home,often at the heart of the local community.They benefit from customer-focussed designs,high service standards,quality food(including vegan and vegetarian options)and market-leading drinks(including non-alcoholic options),all of which matter to the discerning consumer.By having a mix
318、 of excellent riverside,garden and city pubs and hotels,we seek to address the impact of seasonality and changes in consumers spending habits.Financial4.Various factors,including legislation,conflict,pandemics and global demand,may result in the amount we pay for our key supplies(including food,drin
319、k,gas and electricity)and labour being increased.An example would be the National Living Wage,where the hourly rate was increased by 6.6%to 9.50(from 8.91)with effect from 1 April 2022(for those aged 23 and over).Increased costs could potentially make our offer less attractive to consumers if they a
320、re passed on.See also 13.A reduction in our revenue and/or an increase in our costs will have an impact on our margins and could result in lower profits.Fixed-price arrangements are in place with some of our food and drink suppliers.Regarding utilities,we continually look at ways of reducing our lev
321、els of consumption;we also regularly review our energy needs and price changes in the market,and,where appropriate,we make forward purchases.Increased wages may result in consumers having greater capacity to absorb increased prices,but any shortfall will need to be mitigated through greater labour a
322、nd other efficiency gains.5.The pub industry is subject to a variety of taxes,including business taxes,duty on alcoholic drinks and business rates.The introduction of new taxes and/or increases in the rates of existing taxes could result in lower profits.As regards rates,we retain the services of sp
323、ecialist rating consultants who review each and every rating assessment.Appeals are lodged on our behalf where the new assessments are deemed excessive.6.We operate a defined benefit pension scheme that has to be funded to meet agreed benefit payments.The value of the scheme can be impacted by a var
324、iety of factors,including changes in life expectancy assumptions,lower than anticipated performances of the stock market and reduced bond yields.We also operate two defined contribution pension schemes that require minimum levels of contribution from the company set by the Government.Variations in t
325、he difference in value between the assets of the defined benefit scheme and its liabilities may increase the amount we are required to pay into it in order to account for past service benefit deficits and future service benefit accruals.An increase in our contribution levels to the defined contribut
326、ion schemes could result in lower profits.The defined benefit scheme was closed to new entrants in 2003 and we make additional contributions over and above regular service contributions to help address any funding deficit.We also maintain a close dialogue with the schemes trustee.To limit further th
327、e potential exposure,future service benefits accruing to remaining active members were reduced from April 2016,with member contributions being increased in tandem.7.Our financial structure involves bank borrowings and senior secured notes due 2039.The business therefore needs to generate sufficient
328、cash to repay these debts with accrued interest.Interest rates are also subject to change.See also 12.Our ability to trade as a going concern depends on us generating sufficient cash to meet these repayments.The vast majority of the groups debt profile is long-dated,facilities are committed and debt
329、 is carefully managed within financial covenants.A mix of debt at fixed and variable interest rates is also maintained,with interest rate swaps used to assist in managing this exposure.Strategic Report41Young&Co.s Brewery,P.L.C.|Annual Report 2022Principal risks and uncertainties continuedRisk/uncer
330、taintyPotential impactMitigationChange in risk/uncertaintyOperations8.We rely on a number of key suppliers to provide our pubs and hotels with food and drink.Supply disruption could affect customer satisfaction,leading to a reduction in our revenue which could result in lower profits and growth rate
331、s.Food and drink is sourced from a number of suppliers.Informal arrangements are also in place such that substitute suppliers or products could be used if required.Our offering provides an attractive showcase for food and drink suppliers we therefore anticipate that new suppliers would be ready and
332、willing to come on board relatively quickly should there be limited disruption of our food and drink supply chain.We regularly review our choice of suppliers.9.We are reliant on information systems and technology for many aspects of our business,including communication,sales transaction recording,st
333、ock management,purchasing,accounting and reporting and many of our internal controls.Information systems can be at risk of failure due to technical issues and the growing threat of cyber attack.Any failure of such systems or technology would cause some disruption,and any extended period of downtime,loss of backed up information or delay in recovering information could impact significantly on our a
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