Young & Co.'s Brewery plc (YNGA) 2021年年度報告「AIM」.pdf

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1、Annual Report for the 52 weeks ended 29 March 2021Together at Youngs Together at Youngs Strategic Report04 Chairmans statement06 Youngs at a glance08 Investing in our estate 10 Chief executives review 14 Our strategy and business model16 How we performed 18 Section 172(1)statement24 Welcoming back a

2、ll our teams26 Principal risks and uncertainties30 Our approach to ESG37 Business and financial reviewCorporate Governance44 Chairmans corporate governance statement48 Board of directors52 Corporate governance report60 Audit committee report66 Remuneration committee report68 Directors report74 Indep

3、endent auditors reportFinancial Statements83 Group income statement84 Group statement of comprehensive income85 Balance sheets86 Statements of cash flow87 Group statement of changes in equity88 Parent company statement of changes in equity89 Notes to the financial statements130 Five-year reviewShare

4、holder Information131 Notice of meeting136 Explanatory notes to the notice of meeting138 Senior personnel,committees,banks,advisers and others138 Shareholder informationContentsAbout YoungsYoungs pubs and hotels are at the heart of our local communities in London and the south of England.With more t

5、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,

6、and the people who work with us have pride in our culture and passion forthe work they do.The past year has been challenging for everybody.Lockdown has shown us all how important the Great British Pub is for so many people and local communities.We have been working hard to make sure Youngs is at its

7、 best as we reopen our doors and that we remain in a strong financial position to invest for the future.From all our teams we want to wish you a very warm welcome back to our pubs and hotels.Together at Youngs we look forward to the future with optimism.Strategic Report01Young&Co.s Brewery,P.L.C.|An

8、nual Report 2021The story of our yearResultsI am extremely proud of the way our teams have reacted to the extraordinary challenges that we have faced.The absolute professionalism of our pub managers and their teams has enhanced our reputation as a highly responsible pub operator and underlined the e

9、xceptional quality of the Youngs business.Despite the many lockdowns and disruption to our business,the financing decisions taken during the summer allowed us to continue to make significant investments in our pubs,with some truly transformational projects.We expect to see excellent growth from this

10、 investment in our next financial year and beyond.We are confident with the steps we have taken to ensure Youngs continues to be in a position of strength and there is potential for a strong recovery this summer.Patrick DardisChief Executive“We were able to navigate our way through the pandemic,desp

11、ite thelast financial year being one ofthe most challenging in our 189-year history.”(Loss)/profit before tax(m)(45.2)2020:29.1Adjusted basic(loss)/earnings per share1(66.63)p2020:60.18pDividend per share2020:10.57pNet cash generated from operations(m)(23.0)2020:72.5Basic(loss)/earnings per share(68

12、.23)p2020:39.37pNet assets per share211.042020:12.05Revenue (m)90.62020:311.6Operating (loss)/profit(m)(35.1)2020:37.9Adjusted operating(loss)/profit(m)1(34.0)2020:46.5Adjusted(loss)/profit before tax(m)1(44.1)2020:37.7All of the results above are from continuing operations.1 Reference to an“adjuste

13、d”item means that item has been adjusted to exclude non-underlying costs(see notes 10 and 11).2 Net assets per share are the groups net assets divided by the shares in issue at the period end.Strategic Report02Young&Co.s Brewery,P.L.C.|Annual Report 2021April JuneAfter closing in March 2020,our pubs

14、 remained shut for the majority of the first four months of the period.It was great to see the individual acts of kindness across the estate,as our teams stepped up to help the most vulnerable in their communities,gifting food parcels to elderly neighbours and hospices,and delivering meals to NHS st

15、aff.JulyWe took a cautious approach,deciding to reopen all our managed houses on 20 July.This allowed us to put in place all the necessary covid-19 safety protocols without compromising on the great Youngs experience.Our managers had time to retrain their teams,dust away any cobwebs and prepare our

16、wonderful pubs ready to welcome back our loyal customers.August OctoberWe were open for business and the resilience of our customers truly amazed us as they flocked back in large numbers.The“Eat Out to Help Out”campaign helped drive midweek food sales in August,and despite social distancing restrict

17、ions,trading was encouraging.It was fantastic to welcome our customers back after months away.November MarchFollowing the second national lockdown all our pubs closed on 5 November,and although we were able to open our doors again in December,trading was short-lived.Our pubs would remain closed unti

18、l the end of the period.However,by the end of March we were gearing up ready to reopen a large number of our pubs in April.Strategic Report03Young&Co.s Brewery,P.L.C.|Annual Report 202190.6mRevenue88.4mEquity proceedsChairmans statement We look forward to the future with optimismStrategic Report04Yo

19、ung&Co.s Brewery,P.L.C.|Annual Report 2021“In a year overshadowed by covid-19,I am immensely proud of everyone atYoungs who,together,have reacted so positively in such adverse tradingconditions.”We have taken the necessary steps to ensure Youngs continues to be in a position of strength and able to

20、take full advantage of the pub market as it returns to some level of normality.Our pubs have continued to be at the heart of their communities,and when allowed to open they were covid-19 secure,providing a safe environment for our customers and teams.The absolute professionalism of our pub managers

21、and their teams has enhanced our reputation as a highly responsible pub operator and underlined the exceptional quality of the Youngs business.I have been very proud of how Youngs provided significant support for our teams,suppliers,tenants and local communities during this difficult period.We are f

22、ocussed on creating value for all our stakeholders and enhancing the communities where we operate.The board is currently devising a comprehensive ESG strategy and will update our stakeholders on our plans in due course.The extraordinary challenges posed by covid-19 meant that we needed to preserve a

23、nd strengthen our capital position.The initial short-term measures included issuing 30.0 million in commercial paper under the Bank of Englands Covid Corporate Financing Facility,which was paid back in full on 13 May 2021,and securing an additional 20.0 million committed facility.Longer-term,we refi

24、nanced the 50.0 million term loan that was due to expire in March 2021,with a new longer-term five-year facility that takes us to 2025.This facility also has two one-year extension options that could take it out to 2027.In June 2020,we also raised additional gross funds of 88.4 million,through a sha

25、re placing,highlighting at the time the need not only to improve liquidity,but also to ensure we were able to support our investment programme both in our existing estate and provide for opportune acquisitions.Our investment programme had previously been put on hold as part of our covid-19 related c

26、ash conservation plan.These actions have reinforced Youngs as a sound,resilient business,built on a firm financial footing with a balanced,well-invested and substantial estate of great pubs.Our long-standing strategy of operating a differentiated,premium,and well-invested pub estate remains unaltere

27、d.Youngs has been focussed on steering a measured long-term course through the current crisis.We have continued to invest in our pubs as a result of the financing decisions taken during the summer,investing 17.0 million in our managed estate,with some truly transformational projects,including at sev

28、eral of our iconic pubs such as the Windmill Hotel(Clapham),Oyster Shed(Bank)and the Green Man(Putney).We have also continued to invest in developing new pubs,completing two during the year:Enderby House(Greenwich)and Albans Well(St.Albans).Youngs is in a very strong position to capitalise on the tr

29、uly exciting times that I hope lay ahead,with financial firepower to continue to upgrade our existing pubs and take advantage of attractive acquisition opportunities that may come to the market.On 12 April,we reopened 144 of our pubs,and the level of trade clearly demonstrates that the great British

30、 public has been yearning to get back to their local,which plays such a vital part in the lives of so many.We are looking forward to the further easing of restrictions so we can open our pub estate fully.In light of this years disruption to our business and the expected lower levels of trade for Apr

31、il,May and June,the board concluded that it was not appropriate to recommend payment of a final dividend for the financial year just ended.The board is very mindful of the importance of dividends to its shareholders and intends to resume dividend payments as soon as is appropriate.In September,Torqu

32、il Sligo-Young retired as an executive director,a role he held for 24 years.During this time,Torquil held several roles but will be particularly remembered for his great work developing our IT solutions.Happily,Torquil has accepted our invitation to remain on the board as a non-executive director.In

33、 January,Trish Corzine stepped down as a non-executive director,having completed a second three-year term.She brought with her a wide-ranging knowledge and experience of the hospitality and leisure sector,having spent most of her career in the restaurant industry.Further,Roger Lambert will be retiri

34、ng as a non-executive director at the end of July,shortly after this years AGM.Roger has been associated with Youngs for many years,initially as our corporate advisor with Cazenove and for the past 13 years as a non-executive director;his wise counsel has always been hugely appreciated.I would also

35、like to personally thank Patrick and his executive team of Mike,Simon and Tracy for their exemplary leadership through such unprecedented times.To have the entire estate closed for almost nine months but continue to maintain the spirit and momentum of the business has been a considerable achievement

36、.Stephen GoodyearChairman19 May 2021Strategic Report05Young&Co.s Brewery,P.L.C.|Annual Report 2021From stunning riverside terraces to flower-filled garden huts,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 w

37、ho work with us have pride in our culture and passion for the work they do.Youngs at a glanceYear of the staycationWe are strongly positioned with our well-invested hotel estate to serve the rise in popularity for staycations in London and the south of England.The Shack is backOur famous Burger Shac

38、k is back!With new branding,unique collaborations and our best of British seasonal ingredients offered at a record number of shacks from April.Exciting summer of live sportWith the rearranged 2020 Euros football and Tokyo Olympics,alongside the Lions rugby tour of South Africa and Wimbledon tennis,i

39、ts an electrifying line-up of live sport this summer.Looking ahead to 2021273Pubs773.7mValuation of our estate1831EstablishedTenanted76.923.1Managed%201920202021750.6m773.7m771.1m*includes long leaseholds4,185Employees688Hotel rooms54Burger ShacksPubsFreehold*and leasehold22845LeaseholdFreeholdStrat

40、egic Report06Young&Co.s Brewery,P.L.C.|Annual Report 2021Refurbishments and renovationsSince 1831,weve been running some of the best neighbourhood pubs,boutique hotels andcitybars in London and the south of England.No two of our pubs are the sametheyreflect the village vibes,suburb setting and city

41、streets around them.The Canford,PooleWe have added a further ten beautiful boutique rooms,along with upgrading the garden,in this popular hotel down on the south coast,minutes away from stunning beaches.Windmill,ClaphamThis ever popular pub and hotel on Clapham Common has had a complete renovation o

42、f the trading space with a stunning new bar and dining space.Enderby House,GreenwichOur project in Greenwich was recently finished,creating a magnificent,contemporary pub in a beautiful and historic building with views of the river.Our locations0-56-1011-1516-20More than 20South West26South East45Gr

43、eater London 202Lewisham2Southwark10Lambeth13Bromley3Croydon2Sutton5Merton6Kingstonupon Thames8 Richmond upon Thames18Hounslow2Hillingdon0Ealing5Brent0Harrow0Barnet2Haringey0Enfield1WalthamForest0Redbridge0Havering0Barking&Dagenham0Newham1Bexley0 TowerHamlets6Wandsworth35Camden14Islington11Hackney3W

44、estminster18Kensington&Chelsea9 Hammersmith&Fulham11City ofLondon9Greenwich8Strategic Report07Young&Co.s Brewery,P.L.C.|Annual Report 2021Investing in our estate Enderby House,Greenwich(right)Our multi-million pound project nestled in the heart of Greenwich was completed in March,creating a magnific

45、ent,contemporary pub in a beautiful historic building with views of the river.Boasting a stunning terrace and an array of floors and feature rooms to host afternoon teas,private dining experiences,meetings and social meetups.Investing in our world-class pubs and hotels remains key to the success and

46、 long-term growth of our business.During the period we invested 17.0m in our managed estate,from acquisitions,to refurbishments of iconic favourites and adding new boutique bedrooms.Windmill,Clapham(right)This ever popular pub and hotel on Clapham Common has had a complete renovation of the trading

47、space with a new bar,snug spaces,a beautiful garden dining room and additional external covers to accompany the revamped Burger Shack.The Grange,Ealing(above)With a wonderful new conservatory refurb and a big upgrade to the garden,the Grange in Ealing is ready for the summer.AcquisitionsMajor projec

48、tsAlbans Well,St Albans(right)Recently opened,this stunning pub and kitchen in the heart of St Albans showcases a forward-thinking approach to social dining with a focus on sustainable,local and simple dishes.A first for Youngs,we installed a wine wall showcasing the extensive range of wines we offe

49、r.Strategic Report08Young&Co.s Brewery,P.L.C.|Annual Report 2021The Canford,Poole(above)We have added a further ten beautiful boutique rooms,along with upgrading the garden in this popular hotel down on the south coast,minutes away from stunning beaches.Duke of Wellington,Notting Hill(below)Sitting

50、on the buzzing Portobello Road,the Duke of Wellington has undergone a major renovation including a beautiful new lounge with cosy seating and a Pie Room serving delicious home made pies.Duke on the Green,Fulham(above)Overlooking Parsons Green,this pub now boasts a superb new bar and eating area,comp

51、lete with snug seating by the fire and a vibrant and light back room.Park Hotel,Teddington(above)We have created ten premium boutique bedrooms in the main building of our iconic pub and hotel in Teddington,ready for the staycation boom.Oyster Shed,City of London(left)One of the Citys finest watering

52、 holes has been stunningly improved with a large mezzanine extension creating additional covers and private hire space.Major projects continuedHotelsStrategic Report09Young&Co.s Brewery,P.L.C.|Annual Report 2021Chief executives review A year like no other35.1mOperating loss19.1mCash investedStrategi

53、c Report10Young&Co.s Brewery,P.L.C.|Annual Report 2021The last financial year has been one of the toughest we have ever endured;our wonderful pubs spent many more days with their doors closed to our customers than open.Talk of like-for-like sales and new pub openings took a backseat,replaced by nati

54、onal lockdowns,trading restrictions and curfews.Despite this,there is now a real sense of excitement and anticipation for the year to come.With all our pubs having reopened,albeit subject to operational restrictions for now,we are focussed on a strong recovery.The impact of covid-19 on our financial

55、 results has understandably been significant.With only just under four months of trading possible,total group revenue was down by 70.9%to 90.6 million,resulting in an operating loss of 35.1 million.Once adjusted for non-underlying items,the operating loss was 34.0 million.Our operators and support t

56、eams went through the immense task of closing and then reopening our pubs for three national lockdowns.During the enforced periods of closure,we were busy behind the scenes reviewing our cost base,investing in the estate and streamlining the business so that we returned stronger and can look forward

57、 with confidence.Faced with a global pandemic and our pubs closed for the first time in my lifetime,we moved quickly last summer to strengthen our capital position.Longer term,we refinanced the 50.0 million term loan that was due to expire in March 2021,replacing it with a five-year facility that ta

58、kes us up to 2025.This facility also has two one-year extension options that could take it out to 2027.Short term,we accessed 30.0 million from the Bank of England under the Covid Corporate Financing Facility(“CCFF”),which was paid back in full on 13 May,and we secured a further 20.0 million revolvi

59、ng credit facility.With one eye on the future,we then raised gross proceeds of 88.4 million through an equity issue of new shares in June.This allowed us to restart our investment programme,and it provided vital funding ahead of what turned out to be another lengthy period in lockdown.Securing our l

60、ong-term future and success also means creating value for all our stakeholders,ensuring that they are a key consideration in our decision-making process.We were pleased to provide extensive support to a number of our stakeholders during the pandemic,particularly all our fantastic teams.Going forward

61、s,the group intends to set out an ESG strategy outlining the material risks and opportunities for Youngs and how we can play a positive role in the communities in which we operate.We believe that embracing this approach will contribute to the long-term success of our business.For our managers and th

62、eir teams in the pubs it has been a difficult period.The majority of time has been spent away from their businesses on furlough,but they have been fantastic in rising to the challenges thrown at them.Maintaining contact with our teams during these extended periods away from the business on furlough

63、has been vitally important.We used various social media platforms and our Keeping in touch Facebook group to provide our teams with regular updates on what has been going on at Youngs,with video content from heads of department and myself.Training sessions have also taken place online for teams to k

64、eep their skills up to date.Going all the way back to last spring,many of our teams immersed themselves fully to help support those in their local communities most in need,through providing meals to frontline healthcare workers,donating food supplies or giving up their time to help nearby food banks

65、.We were one of the first pub companies to confirm support for their tenants with rent holidays,as opposed to just rent deferrals,meaning they were rent free without the worry of having to pay this back in the future.Our customers are really important to us and their loyalty has never wavered.They f

66、locked back initially after we reopened all our pubs on 20 July,which was followed by the success of“Eat Out to Help Out”where sales were in growth on the prior year.Despite the ever-changing restrictions that we faced,sales often reached 90%of the prior year up until the second lockdown in November

67、.This gives us great confidence in our proposition and the potential for strong trading once all covid-19 operating restrictions are lifted.We pride ourselves on operating a differentiated,premium and well-invested pub estate.Even in the desperately hard times we have found ourselves in recently,it

68、has been important to continue the investment in our managed pubs,made possible by the financing decisions taken during the summer.Once the first lockdown was lifted in July,we were immediately back on-site at three projects that had been stopped in their tracks the Green Man(Putney),Seagate Hotel(A

69、ppledore)and the City Gate(Exeter)to ensure all were completed in time to capitalise on the summer trade.“I am incredibly proud of the Youngs team,for all their hard work and the way they handled the challenges thrown at them over the course of the year.”Strategic Report11Young&Co.s Brewery,P.L.C.|A

70、nnual Report 2021After the summer,we resumed our capex programme with schemes at the Duke of Cambridge(Battersea),Duke on the Green(Fulham)and the Duke of Wellington(Notting Hill),bringing these fine traditional pubs back to the highest of Youngs premium standards.In March this year,we also invested

71、 in one of our most iconic pubs,transforming the bar and dining areas at the Windmill(Clapham),and added a further 87 covers at our City of London favourite,the Oyster Shed(Bank);both completed in time for the reopening on 12 April.Ahead of another busy staycation summer,we have continued to invest

72、in our hotels.Creating 11 stylish boutique bedrooms at the Canford(Poole),investing in a further ten boutique bedrooms at the Park(Teddington)and transforming the bar and restaurant areas at the Bear(Esher),we are ready to capitalise on what will hopefully be a bumper British summer.More important t

73、han ever,this year has seen the value of desirable outside trading space that can be used throughout the year and not just during the summer months.Ahead of autumn,we invested 1.1 million in adding huts,stunning stretch tents and heaters in many more of our pubs,creating an environment that people c

74、ould really enjoy,and for some customers the excitement of discovering our amazing gardens for the very first time.Further,whilst dining outside,our customers will now be able to order from our rejuvenated Burger Shacks.After breathing new life into the brand,we have launched a new menu with greater

75、 variety and unique Shack Session beers.Understandably it has been quiet on the acquisition front and we ended the period with 273 pubs(2020:276).On reopening this April,we launched in St Albans,a new territory for Youngs,with Albans Well,and extended our presence in Greenwich through the opening of

76、 Enderby House,an acquisition made in the previous year.Both pubs have undergone significant investment and showcase the finest essence of Youngs,with premium bar and dining areas and well thought out external trading space.I am particularly excited to see how these additions to the managed estate p

77、erform over the coming year.During the year,we also acquired a freehold property in the Cotswolds village of Stow-on-the-Wold where we already have the Bell Inn,a wonderful pub and hotel with 13 rooms.This additional property will,subject to planning,enable us to add further boutique bedrooms and ca

78、r parking space in a highly desirable,premium location.During the year,three businesses transferred from our tenanted division the Spread Eagle(Wandsworth),Ship Inn(East Grinstead)and the Royal Oak(Bethnal Green)and all present fantastic future growth potential following investment.We are already on

79、-site at the Spread Eagle,a freehold site,starting to build our new head office,back in the heart of Wandsworth,ready to move in during spring 2022.Current trading and outlook On 12 April,we were pleased to open 144 of our pubs for the much-anticipated reopening of the economy and phase two of the G

80、overnments four-step plan.The pent-up demand was evident weeks in advance as bookings for our gardens,huts and newly created external space flooded in.Over the first five weeks,we saw very strong trading and achieved 85%of normal trade in those 144 pubs.Our remaining pubs and hotels reopened this we

81、ek,along with thousands more pubs and restaurants that form the great hospitality sector,ready for the next important step towards normality.The key date for us is freedom day on 21 June the day that will truly make a difference.After the period end,we appointed Savills to explore the possible sale

82、of the tenanted estate.There can be no certainty,however,that any sale will proceed.We also completed the freehold acquisition of the Greenwich Union,a pub located adjacent to our Richard the First.In the short-term,this provides additional external trading space for the summer months before we purs

83、ue a larger scheme to combine the internal trading areas,subject to planning.We continue to explore further acquisition opportunities that will enhance our estate.There are many reasons to harbour optimism for the year ahead.Following a period during which everyone has found their opportunities for

84、social interaction and celebration significantly lacking,we know there is going to be a huge pent-up demand for special events,whether it be big birthday bashes,weddings or Christmas parties.People have missed these major life events in which the pub plays a significant role,and we have missed hosti

85、ng them.We will also benefit from our exciting acquisitions from last year,including the five pubs in and around southwest London and Surrey that we purchased late in March 2020 and which have not yet been able to trade fully for any real period of time.Additionally,there are the recent major develo

86、pments which have not yet had the opportunity to perform such as the Dog and Fox(Wimbledon Village)and the investments in all the Redcomb pubs.This gives us great reason to look forward with optimism.We are confident with the steps taken to ensure Youngs continues to be in a position of strength.Apr

87、il has started better than planned,with future bookings also looking positive.There is potential for a good recovery this summer and we believe that our strategy of running a differentiated,premium and well-invested pub estate will underpin the future success of Youngs.Patrick DardisChief Executive1

88、9 May 2021Chief executives review continuedStrategic Report12Young&Co.s Brewery,P.L.C.|Annual Report 2021“There are many reasons to harbour optimism for the year ahead.Following a period during which everyone has found their opportunities for social interaction and celebration significantly lacking,

89、we know there is going to be a huge pent-up demand.”Strategic Report13Young&Co.s Brewery,P.L.C.|Annual Report 2021We grow through investing in our estate 11 12 We look to grow through a combination of investing in our existing pub estate,opportunity-led acquisitions and our people.Each year,on avera

90、ge,we reinvest about two-thirds of the cash we generate.Much goes back into our existing estate in the form of transformational developments and maintenance to the high standard our customers expect.In carrying out developments,we look to improve current trading area efficiencies and increase each p

91、ubs trading space;the latter can see upper parts converted into accommodation,function rooms and rooftop bars;basements become cocktail bars and outdoor spaces turned into beautiful gardens with Burger Shacks.We invest in hand-picked acquisitions 7 11 We also invest in hand-picked acquisitions,based

92、 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.Through our experience and expertise,we assess what we believe an acquisition can realistically achieve;what it may current

93、ly be doing is often less relevant.We run a predominantly freehold estate 7 11 12 We believe freehold assets give us greater control and opportunities within our business,whether this is,for example,insulating us against potential rent increases or providing us with greater freedom to do up and impr

94、ove our pubs.A predominantly freehold backed estate also enables us to negotiate better terms with lenders,whilst allowing us to also benefit from increases in property values.We focus on differentiated,premium,drink-led pubs 3 8 Within our managed segment,we operate differentiated,premium,mostly dr

95、ink-led pubs in London and southern England.Our locations are mainly in areas that have a high proportion of affluent and discerning customers derived through a mixture of residential,leisure and work where our premium product offerings are greater suited.Revenue mix 3 8 10 Usually our revenue mix i

96、s 65%drink,30%food and 5%accommodation.Although food is an important part of our offer,we run pubs,not restaurants,which can be more labour intensive.Our drink-led offer is supported by our locations which are often within walking distances of public transport links.Our strategy How we growOur busin

97、ess model How we create valueWe are a people business 10 12 13 We believe in investing in our people,nurturing our own talent,so they are able to continue to grow our businesses by surprising and delighting our customers.Our individually-tailored development programmes allow people at every level in

98、 our business to explore opportunities and we encourage the entrepreneurial spirit that has ensured our place as industry leaders.Entrepreneurs can be a rare commodity in the hospitality industry and getting the right fit for both parties can be a challenge as well as time consuming and expensive.Pr

99、omoting our internally developed talent pool therefore ensures our future leaders know who we are and what we stand for,giving us and our teams a head start in growing our business and increasing our productivity.We run a small quality tenanted estate 3 We also run a small quality tenanted estate wh

100、ich extends our reach into other geographical areas.Our tenanted estate allows us to work in partnership with engaging entrepreneurs to run sustainable businesses.Tenanted pubs are less labour intensive than managed houses,increase our buying power with suppliers and are cash generative.They also al

101、low us to acquire freehold pubs with tenants in situ that we can service through our tenanted operation and,when the time is right for both parties,transfer these pubs into our managed estate.We use our combined buying power 4 8 13 We use the combined buying power of our managed and tenanted estates

102、 to source the best products for the best prices from a small number of suppliers we buy predominantly British produce,supporting the local communities we operate in.Although the suppliers we use stretch across the estate,our general managers are given the freedom and flexibility within guidelines t

103、o run the pubs to best fit and contribute to the communities in which they reside.This individuality is supported by the uniqueness of the pub designs which dont follow a particular format or concept but have a welcoming,cosy theme to offer our customers that home-away-from-home feel.The circled num

104、bers refer to Principal risks and uncertainties on pages 26 to 29.Strategic Report14Young&Co.s Brewery,P.L.C.|Annual Report 2021Together at Youngs with the Bruen-Guerrero family for Sunday lunch in the garden“We love feeling welcome and homely outside our home,celebrating special moments ortalking t

105、o other guests.”John and Monica,along with their children Liam,Sean and Ane,and their family dog,Tiger,have missed the social aspect of visiting their local Youngs pub for Sunday lunch.The welcoming and friendly atmosphere make it the perfect place to bring the family,and enjoy our wonderful food an

106、d drink.Strategic Report15Young&Co.s Brewery,P.L.C.|Annual Report 2021We measure the development,performance and position of our business against a number of key indicators.The reference to an“adjusted”item means that item has been adjusted to exclude non-underlying items.These alternative performan

107、ce measures have been provided tohelp investors assess the groups underlying performance.Revenue mThis is our total group revenue,including both our managed and tenanted business.303.72019311.6202090.62021Adjusted EBITDA mThis is our earnings before interest,taxes,depreciation and amortisation adjus

108、ted to exclude any exceptional items for the group.(See notes 10 and 11).72.879.6-0.3201920202021Gearing%This is our net debt divided by our net assets(expressed as a percentage).27.647.538.5201920202021Like-for-like revenue%This is our revenue movement for this period compared with the previous per

109、iod for our managed pubs and hotels that traded throughout both periods.5.1-2.4-72.1201920202021Adjusted(loss)/profit before tax m This is our(loss)/profit before tax on continuing operations only,adjusted to exclude any exceptional items for the group.(See notes 10 and 11).43.437.7-44.1201920202021

110、Interest cover(times)This is our adjusted operating profit divided by our finance costs.9.75.4-3.4201920202021RevPAR This is our revenue per available hotel bedroom;it is the average room rate achieved multiplied by the occupancy percentage.61.4459.2329.68201920202021Adjusted(loss)/earnings per shar

111、e(p)This is our adjusted(loss)/profit before tax,but after tax has been deducted,divided by the weighted average number of ordinary shares in issue.(See notes 11 and 16).72.1360.18-66.63201920202021Recycling(tonnes)This is the amount of waste we recycle and divert from landfill.7,4037,4584,351201920

112、202021Key Performance IndicatorsStrategic Report16Young&Co.s Brewery,P.L.C.|Annual Report 2021Together at Youngs with Kate,Ben and Max We are all so excited to welcome back our guests“Our hotel is at the heart of the local community.We have many regular guests and are looking forward to welcoming th

113、em back.”Our collection of 30 hotels are found across the south of England,from London to the idyllic coasts of Devon and Dorset.Whether its a country escape,a stay by the coast or a city break,theres something to match every mood or occasion.By offering a mixture of traditional charm,character and

114、fantastic hospitality,our hotels have the unique attraction of being within a traditional pub,complete with a range of award-winning drinks and superb food.Strategic Report17Young&Co.s Brewery,P.L.C.|Annual Report 2021Strategic ReportHow we have engaged with our stakeholdersSection 172(1)statement C

115、ustomersWhy?The companys biggest source of revenue is from customers in the groups managed houses(96.0%of total company revenue),with drink sales being 59.4%of managed house revenue,food being 37.5%,provision of accommodation being 2.9%and other income 0.2%.Lower revenue could lead to lower profits.

116、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 27.How?See the Engagement with suppliers,customers and others in a business relationship w

117、ith the company section within the directors report,starting on page 71.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 71.Our peopleWhy?The commitment,skills and experience of

118、 the people employed throughout the organisation(whether they are in the companys pubs and hotels or at Riverside 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/or support,the companys business and in demon

119、strating the companys values on a daily basis.They are a 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 the physical and mental wellbeing of its staff

120、,and gives individuals the opportunity to develop.See also principal risk/uncertainty 10 on page 28.How?See the Employee engagement section within the directors report,starting on page 69.Outcomes and actionsSee the Employee engagement section within the directors report,starting on page 69 and Furl

121、oughing of staff on page 21.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 considered,in good faith,would be most likely to promote the success of the company for the benefit of its membe

122、rs as a whole.In line with guidance issued by the Financial Reporting Council,this statement concentrates on matters that are of strategic importance to the company.Where appropriate and to avoid duplication,the statement cross-refers to other sections within the annual report.Principal stakeholder

123、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 group(the Why?)The main methods used by the directors to engage with that group and to understand the issues

124、 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)Suppliers Customers Our people Investors Lenders Trustees of the finalsalary pensionscheme Ram Pub CompanyTenan

125、ts Strategic Report18Young&Co.s Brewery,P.L.C.|Annual Report 2021 SuppliersWhy?The business relies,in the main,on a small number of suppliers to provide the companys pubs and hotels with food and drink.The range,availability and quality of the products sourced is fundamental to the companys reputati

126、on.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 suppliers,and has good,strong and mutually beneficial business relationships with them.80%of the companys spend is

127、with 7%of its suppliers.See also principal risk/uncertainties 4 and 8 on pages 27 and 28.How?See the Engagement with suppliers,customers and others in a business relationship with the company section within the directors report,starting on page 71.Outcomes and actionsSee the Engagement with supplier

128、s,customers and others in a business relationship with the company section within the directors report,starting on page 71 and Extension of two key drink supply agreements on page 22.InvestorsWhy?Continued access to capital is of vital importance to the long-term success of the companys business.Via

129、 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 created.The aim is to promote an investor base interested in a long-term holding in the company.See also principal ri

130、sk/uncertainty 7 on page 28.How?See the Shareholder relations section within the corporate governance report,on page 59,for information on the companys main methods of engagement with investors.Outcomes and actionsThe companys investors remained supportive of the companys strategy and business model

131、.See also Equity issue on page 23.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 business model.The intention is to develop supportive,long-term relationships.See also princi

132、pal risk/uncertainty 7 on page 28.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 quarterly covenant compliance certificates.Outcomes and actionsThe companys lenders remained sup

133、portive of the companys strategy and business model.Discussions between them and the company focussed on the strengthening of the companys liquidity position,the replacing of certain of the companys financial covenant tests with an available liquidity test and the amendment or waiver of certain prov

134、isions in the companys borrowing facilities,all as a result of the impact of the coronavirus pandemic.See also Liquidity position:strengthening on page 22.Strategic Report19Young&Co.s Brewery,P.L.C.|Annual Report 2021How we have engaged with our stakeholders Section 172(1)statement continued Ram Pub

135、 Company tenantsWhy?The Ram Pub Company tenants are the companys second biggest source of revenue(3.6%of total company revenue).This revenue is derived from rents paid by the tenants(who lease or sublease pubs owned or leased by the company)and from company sales of drink to them;lower revenue could

136、 lead to lower profits.Albeit the tenants run the pubs for their own account,they are nevertheless associated with Youngs;their operations therefore reflect on the Youngs name and reputation.The Ram Pub Company helps increase the companys buying power with suppliers,is cash generative and allows the

137、 company to acquire freehold pubs with tenants in situ pending their transfer to the managed estate when the time is right for the tenant to leave and for the company to take over.How?During the period,engagement with the tenants tended to be on an individual basis,with additional centralised commun

138、ications coming out from time to time,largely concerning changes in trading restrictions brought about by tiered arrangements imposed as a result of the pandemic.Cyclical business reviews continued with tenants during the periods they were permitted to trade.In light of the pandemic,the companys yea

139、rly forum(which historically has enabled the company and its tenants to share views and best practice)had to be cancelled.Outcomes and actionsAlmost exclusively,the sole discussion topic with tenants concerned the survival of their businesses in light of the national lockdowns and the introduction o

140、f tiers and other restrictive trading arrangements.Throughout the periods of lockdown,the company provided varying degrees of rent holidays to the vast majority of its tenants.For December(when the second national lockdown had ended and tiered restrictions were in place),the company continued to pro

141、vide a rent holiday to most of its tenants in recognition of the reduced governmental support on offer:a one-off grant of 1,000 to compensate the tenants for the trading impact of the tiered restrictions in what was traditionally their busiest trading month.Throughout the period,the company assisted

142、 tenants to claim government grants,rates relief and credits for wasted beer.Together,these actions saw the estate remaining fully let and a tenant community that felt supported and ready to reopen once post-lockdown trading was permitted.In a couple of instances,the decision was taken to exit from

143、the pub:this resulted in the sale of the Horse Pond Inn(Castle Cary)and the Grove House(Camberwell).The pandemic impacted on the development programme for the estate,with many intended investments having to be postponed until more certain trading conditions returned.However,the Rising Sun(Epsom)did

144、reopen after a long period of closure,with a fresh new look and new tenants,and the Pig&Whistle(Wandsworth)underwent a kitchen investment whilst the pub remained closed.Trustees of the final salary pension schemeWhy?The company operates a defined benefit pension scheme covering benefits payable to v

145、arious 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 requirements.The schemes trustee is Youngs Pension Trustees Ltd,a corpor

146、ate 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 in helping maintain a good working relationship between the company and th

147、e 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 27.How?During the period,the chief financial officer worked closely with t

148、he 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 change or impact upon the employer covenant supporting the scheme.In additio

149、n,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 and actionsDiscussions primarily focussed on funding,investment and employer

150、 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 with a carefully designed strategy to manage liabilities and underlying sche

151、me risk,all against the background of the schemes continuing maturity.The company was consulted on a revised statement of investment principles(reflecting,in part,new regulations on stewardship and governance matters),which led to an updated statement being signed,and it was regularly updated on sch

152、eme funding,membership changes and other key details.Other legislative developments,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 c

153、ompany,trustee and members on funding and security in the uncertain times caused by the pandemic).In light of the ongoing impact of the pandemic,the trustee chose to defer its request for a discretionary increase for the year starting 1 April 2021.Overall,as a result of the companys engagement and t

154、he proactive appropriate stewardship of the trustee,stable contributions continued to be paid to the scheme(as has been the case for many years)and the company benefitted from funding savings resulting from liability management initiatives.Strategic Report20Young&Co.s Brewery,P.L.C.|Annual Report 20

155、21Principal decisionsFor the purposes 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 direct

156、ors during the period;implicit in 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 coronavirus pandemicIn addition to what is set out in this statement,the strategic repo

157、rt(on pages 1 to 42)and the Employee engagement section within the directors report,starting on page 69,provide further detail on various decisions and actions taken by the company in light of the pandemic.Approval of capital and revenue budget for FY2021/22The capital and revenue budget for FY2021/

158、22 was approved by the board in March.In doing this,the board acknowledged that the business remained in uncertain times despite the Governments roadmap to the easing of lockdown restrictions and that the business would face a considerable number of unknowns as and when it reopens and could be readi

159、ly impacted by,amongst other things,consumer confidence and a significant reduction in consumer spend.Subject to that,and in the expectation that business will eventually return to normal,the board believed that the companys premium offering would remain attractive to existing customers and act as a

160、 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 enable selected hand-picked complementary acquisitions to be made.The companys plans,underpinning the budget,are dem

161、anding but will position the company well against its longer-term value creation vision whilst honouring its commitments to its stakeholders.Roger Lambert:deferral of retirement from office by one year;Ian McHoul:invited to serve a second three-year term;Trish Corzine:accepted her wish to step down

162、at end of her second three-year term;and Torquil Sligo-Young:invited to remain on the board as a non-executive directorIn agreeing to defer Rogers retirement from office by one year(to the end of July 2021),the board recognised the challenges then facing the company in light of covid-19,and felt it

163、was important to retain on the board the additional strength,balance,financial acumen and capital markets experience he provided.With non-executive directors being typically expected to serve two three-year terms,Ian was invited to stay for a second term(through to 23 January 2024)and the board acce

164、pted Trishs wish to step down(in January 2021).Rather than lose Torquil from the board(at the end of September 2020 when he wanted to step down from his executive role in the company)and miss out on the important family liaison role played by him,and possibly also be deprived of his chairmanship of

165、the trustee company that manages the companys final salary pension scheme,he was invited to stay on as a non-executive director.Implicit in the decisions relating to Roger,Ian and Torquil was the boards belief that they were independent in character and judgement,made an effective and valuable contr

166、ibution to the board,had demonstrated commitment to their roles and were able to give sufficient time to the company.Further,inherent in all four decisions was the balance between executive and non-executive directors,there being at least two independent non-executive directors,and the board having

167、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.Furloughing of staffThe company chose,throughout the period,to access the Coronavirus Job Retention Scheme,principally with

168、a view to keeping as many members of staff employed as possible in circumstances where their place of work had been ordered to be closed by the Government.As a result,HMRC reimbursed 80%of the basic pay,up to 2,500 per month,of those individuals who would otherwise have been laid off during the cris

169、is.These individuals,known as furloughed workers,were kept on the groups payroll but they stopped working.During the period,the vast majority of the groups employees(including over 4,500 weekly and monthly paid staff in the groups pubs)were designated as furloughed workers at some time.Recognising t

170、hat Youngs would be nothing without its people,the board agreed that the group would,on top of the monies received from the Government,fund the pay of all its furloughed workers whose annual basic salary was more than 37,500 so that they would continue to receive 80%of their normal pay.Strategic Rep

171、ort21Young&Co.s Brewery,P.L.C.|Annual Report 2021Extension of two key drink supply agreementsThe drink supply arrangements with Marstons were updated,partly reflecting the creation of Marstons Beer Company Limited,a wholly owned subsidiary of Carlsberg Marstons Brewing Company Limited,and the increa

172、sed volume of drink supplied on a portered basis rather than wholesale.The new arrangement has an initial fixed term running until the end of May 2022;it is then terminable by either party giving not less than two years notice.It is also terminable early(including,during the initial term)in certain

173、limited circumstances.The wine and spirits supply agreement with Berkmann Wine Cellars,originally entered into in 2016,was also extended;it now runs until the end of 2023 and is likewise terminable early in certain limited circumstances.Interim dividend and final dividend in respect of FY2020/21Payi

174、ng 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.Despite this,the board decided in May 2020 that the company would not be paying an interim dividend for the period in light of,amon

175、gst other things,the then ongoing closure of the companys pubs and the then expected lower levels of trade when they reopened.Given the extensive period of closure of the companys pubs following further waves of the pandemic and the then expected lower levels of trade in April-June 2021,the board de

176、cided that the company would not be paying any dividend for the period.The board intends resuming dividend payments as soon as is appropriate,but no decisions have been made about when that will be.The company has,however,agreed with NatWest and its noteholders that any dividend payments during the

177、companys financial year that started on 30 March 2021 will not exceed 5.0 million in aggregate,but there is no restriction on the company recommending a final dividend with its results for that year,payable in the following financial year,as normal.Liquidity position:strengtheningIn the first quarte

178、r of the period,the company strengthened its liquidity position;this was to help secure the groups business and was prompted by the outbreak of the pandemic and the ensuing forced closure of the groups pub estate,which was then expected to have significant impact on the companys revenue,balance shee

179、t and plans.Amongst other things,the company:successfully negotiated with its existing lender group to replace the companys financial covenant tests at June,September and December 2020 and at March 2021 with an additional monthly 20.0 million available liquidity test through to and including June 20

180、21,and also got agreement from that group to the waiver of any technical cessation of business breach resulting from the groups pubs being closed due to the coronavirus pandemic.By the end of the period,further waivers had been obtained and the lending group had agreed to extend the companys monthly

181、 available liquidity test up to and including March 2022,with a headroom requirement of 25.0 million;established a euro-commercial paper programme and issued 30.0 million in commercial paper(with a 364-day maturity date)under the Covid Corporate Financing Facility;the company repaid this amount from

182、 existing facilities in May 2021;entered into a new 50.0 million syndicated term loan facility with NatWest and HSBC;this five-year facility was drawn immediately to repay in full the 50.0 million syndicated facility with RBS and Barclays that was due to expire in March 2021;entered into a new 20.0

183、million bilateral revolving credit facility with NatWest.This facility had an initial 12-month maturity,with the company having the option to request extensions of the maturity to make it an 18-or 24-month facility.The intention was to leave the facility undrawn and retain it as available liquidity

184、to help the company meet the liquidity test referred to above.The facility has been extended for six months through to the end of November 2021;and raised capital through an equity issue see Equity issue on page 23.As a result of these actions(and exclusive of the companys 10.0 million overdraft wit

185、h HSBC),the company has in place at the date of this report 255.0 million of committed available facilities(inclusive of the 25.0 million required to meet the available liquidity test referred to above).How we have engaged with our stakeholders Section 172(1)statement continuedStrategic Report22Youn

186、g&Co.s Brewery,P.L.C.|Annual Report 2021Equity issueIn June,the company proceeded with a placing of new A shares and new non-voting shares.The purpose behind the fundraising was to provide the company with the financial flexibility to drive its continued success and faster growth,including allowing

187、it to restart investments in its estate,strengthen its balance sheet and pursue opportunistic acquisitions.The placing was conducted through an accelerated bookbuild and involved a cashbox structure,something of which various City bodies were supportive in the extraordinary times created by the pand

188、emic.To provide retail investors with an opportunity to participate in the equity fundraising alongside institutional investors,the board decided that the company should also offer new A shares on the PrimaryBid platform.The equity issue was completed successfully and saw the company raise gross pro

189、ceeds of c.88.4 million-this included c.234,000 received from private subscriptions for new shares made by some of the companys directors(and/or persons closely associated with them).The shares issued represented in aggregate approximately 19.2 per cent of the total existing issued ordinary share ca

190、pital of the company prior to the placing.Disposals of the Horse Pond Inn(Castle Cary)and the Grove House(Camberwell),and the surrender of the lease of the Surprise(Chelsea)During the period,the company agreed to sell the Horse Pond Inn(Castle Cary)(for 375,000)and the Grove House(Camberwell)(for 1,

191、175,000);the former completed during the period and the latter shortly after the period end.These were tenancies falling within the Ram Pub Company,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;

192、as such,in each case a sale was considered the appropriate approach and consistent with the companys strategy.The company chose to surrender,at the end of its term,the lease of the Surprise(Chelsea),a pub within the companys managed estate.As a result,five members of staff were transferred to other

193、pubs in the managed estate,seven members of staff were made redundant,and one member of staff resigned.The Surprise was only marginally profitable and the opportunity to have a clean exit from the lease was compelling.Strategic Report23Young&Co.s Brewery,P.L.C.|Annual Report 2021Welcoming back all o

194、ur teams whove kept us going and made us proudWhile our pubs remained shut during each lockdown,we missed our friends and colleagues greatly.Nevertheless,we were able to maintain close contact and keep everyone up to date using the Keeping in touch at Youngs Facebook page.Here are just a few of the

195、many wonderful achievements over the past year.Andrew and Lizzie at the Hand in Hand(right)General manager Andrew,his deputy Christine and head chef Lizzie have been busy supporting the Riding for the Disabled Association.In addition to volunteering they helped raise funds to save the endangered sta

196、bles in Teddington by hosting a marquee stocked with homemade pies at a local fete and running the virtual marathon in October.Robert from the Waverly(above)Robert gifted food and other supplies to a local childrens hospice,Chestnut Tree House,in Bognor Regis.Anna at the Dolphin feeding local childr

197、en(right)Anna and the team supported their local community and by offering complimentary childrens packed lunches during the October half-term.Niamh from Riverside House(left)Niamh from head office has volunteered as a crisis response volunteer at Imperial College Healthcare NHS Trust Charity,since

198、last April.She has also been actively encouraging other members of the Youngs community to help with the vaccine rollout and other roles on the Keeping in touch at Youngs Facebook page.Connal from the Dukes Head(above)Connal at the Dukes Head Hotel in Wallington,helped support vulnerable local resid

199、ents with freshly prepared meals.Strategic Report24Young&Co.s Brewery,P.L.C.|Annual Report 2021“Thank youvery much for the kindness.It is so appreciated and we cant thank you both enough.”Greyhound hotel in Carshalton offered accommodation to those in need(right)The Greyhound hotel continued their l

200、ong-standing support for the Royal Marsden Hospital by offering rooms to cancer patients while undergoing trial treatment during the second lockdown.This latest initiative built on a tradition of support that has included hosting summer fundraisers,quizzes,raffles,volunteering,and even a Christmas w

201、ishing tree in the Greyhound garden.Our chef Perry at Smiths of Smithfield(below)Perry graced the exterior walls of the Flannels store on Oxford Street as part of the incredible Made You Look project.This was a visual celebration of talented black chefs throughout the hospitality industry while also

202、 being an invitation to look beyond the portraits per se,to discover the fascinating stories behind each individual.Vikki helping local people in crisis(right)Vikki from the Park hotel in Teddington joined her daughter Hattie to collect donations for the Shoreham Food Bank to support the local commu

203、nity.Mick and Sarah from the Alexandra(below right)Proudly supporting our NHS heroes.A minutes silence with Marie CurieOn the first anniversary of the first UK lockdown,23 March,many of our colleagues joined the Marie Curie charitys initiative of lighting up their homes and holding a minutes silence

204、.Together,we reflected on our collective loss during the pandemic,celebrated the lives of the special people no longer with us,and focussed on the need to support those who have been bereaved.Strategic Report25Young&Co.s Brewery,P.L.C.|Annual Report 2021The principal risks and uncertainties facing t

205、he 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 management objectives and policies are set out in

206、 note 25 starting on page 113.Risk/uncertaintyPotential impactMitigationChange in risk/uncertaintyMajor external event leading to widespread pub closures and/or a huge decline in demand 1.An example of this is the spread of a disease-recent and current experience has shown the potential for somethin

207、g like this to have far-reaching and unexpected consequences for our business.As the coronavirus pandemic has spread around the globe in the last 18 months,some of these consequences became apparent and resulted in a very material and unforeseeable impact on our business.This will depend on the natu

208、re of the event,its impact and reach and the reaction to it by the Government,consumers,business and others.For the actual impact on our business during the period of the spread of the coronavirus,see elsewhere within this strategic report.This will depend on the nature of the event,its impact and r

209、each and the reaction to it by the Government,consumers,business and others.Examples of the risk/uncertainty that could flow from a major external event leading to widespread pub closures and/or a huge decline in demand,and therefore what we might possibly do to mitigate its effect,are set out below

210、.The ongoing covid-19 pandemic has given us the experience to ensure we are better placed to combat any future major event resulting in widespread pub closures.2.Our revenue is derived from our managed and tenanted pub estate.The Government has issued its roadmap to reopening the hospitality sector

211、after lockdown 3:on 12 April,pubs with outdoor trading space were allowed to reopen;not earlier than 17 May,indoor trading will be allowed,and not earlier than 21 June,remaining trading restrictions will drop away.There remains an inherent risk with a potential delay in the timings of the roadmap,or

212、 indeed,social distancing restrictions remaining in place far longer than anticipated or planned.Whilst restrictive measures remain in place,we will have reduced revenue from our managed houses and tenancies.Delays in the Governments roadmap could lead to further reduced revenues,resulting in lower-

213、than-expected profits.Our strong balance sheet and excellent teams enable our strategy of operating a diverse premium,well-invested pub estate see 3 below and allow us to rise to challenges thrown our way.As an example,the Governments social distancing restrictions and reopening roadmap limited init

214、ial trading to outdoor space only.Therefore,ahead of the autumn,we introduced or added cabins,stunning stretch tents and heaters to many of our pubs,creating a safe and amazing environment for our customers to enjoy.This investment is and will continue to be supported by our enhanced Youngs on Tap a

215、pp and improved customer booking journey,ensuring we are able to make the most of our available space.On 12 April,144 of our pubs with outside space reopened;our plan is to have all our pubs open on 17 May.If there is a delay in the Governments reopening roadmap or certain restrictions remain in pla

216、ce for longer,we will adapt our ways of operating,maximise the available trading space and ultimately seek to limit impact on profitability.Principal risks and uncertaintiesStrategic Report26Young&Co.s Brewery,P.L.C.|Annual Report 2021Risk/uncertaintyPotential impactMitigationChange in risk/uncertai

217、ntyConsumer-related3.Our 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 economy,the weather,fears of terrorist activity and greater awaren

218、ess of the potential adverse health consequences 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 t

219、hem,we provide a hospitable and welcoming 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

220、the discerning consumer.By having a mix 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 may result in the amount we pay for our key supplies(including food,drink,gas and electricit

221、y)and labour being increased.Following on from the Governments introduction of the National Living Wage,the hourly rate was increased by 2.2%to 8.91(from 8.72)with effect from 1 April 2021(for those aged 23 and over),with annual stepped increases,announced each year,to follow.Increased costs could p

222、otentially make our offer less attractive to consumers if they are 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.Reg

223、arding utilities,we continually look at ways of reducing our levels 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

224、any shortfall will need to be mitigated through greater labour and 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 resul

225、t in lower profits.As regards rates,we retain the services of specialist 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 b

226、enefit payments.The value of the scheme can be impacted by a variety 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 con

227、tribution from the company set by the Government.Variations in the 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

228、.An increase in our contribution levels to the defined contribution 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 mainta

229、in a close dialogue with the schemes trustee.To limit further the potential exposure,future service benefits accruing to remaining active members were reduced from April 2016,with member contributions being increased in tandem.Key to change in the risk/uncertainty level from the prior period Decreas

230、e No change IncreaseStrategic Report27Young&Co.s Brewery,P.L.C.|Annual Report 2021Principal risks and uncertainties continuedRisk/uncertaintyPotential impactMitigationChange in risk/uncertaintyFinancial7.Our financial structure involves bank borrowings and senior secured notes due 2039.The business

231、therefore needs to generate sufficient 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-

232、dated,facilities are committed,and debt 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.Operations8.We rely on a number of key suppliers to provide our pubs and hot

233、els 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 rates.Food and drink is sourced from a number of suppliers.Informal arrangements are also in place such that substitute suppliers or produ

234、cts 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 willing to come on board relatively quickly should there be limited disruption of our food and drink supply chain.We regularly review

235、our choice of suppliers.9.We,and particularly our managed estate,are reliant on information systems and technology for many aspects of our business,including communication,sales transaction recording,stock management,purchasing,accounting and reporting and many of our internal controls.Information s

236、ystems can be at risk of failure due to technical issues and the growing threat of cyber-attacks.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 ou

237、r ability to conduct business.Firewalls and anti-virus software are installed to protect our networks.Information is routinely backed up and arrangements are in place with a third party provider to assist with data recovery.An off-site disaster recovery facility is also available should any major in

238、cident occur at Riverside House or to our systems.The IT needs of the business are regularly monitored,and we invest in new technology and services as necessary.10.We are dependent on having the right people throughout our organisation:at all our pubs and hotels and also at Riverside House.See also

239、13.Our ability to achieve our strategic and operational objectives could be affected if we are unable to attract and retain the right people with the desired skillsets.We look to recruit and retain the best talent.The remuneration and reward packages we offer are competitive and designed to retain a

240、nd motivate staff.We have training and development programmes in place so that our people have the right skills to perform their jobs successfully and achieve their full potential.We also have an active and progressive internal training programme that is developing our own talent pool for the future

241、.11.Part of our growth plan is based on acquiring and/or developing additional pubs and hotels/rooms.If acquisitions do not take place and/or developments do not occur when planned,or at all,our desired future growth rate could be delayed or reduced.We have relationships with a variety of third part

242、ies to ensure,as far as possible,that we are made aware of acquisition opportunities as and when they come up.We have provided a number of agents and landlords with details of our preferred site profiles.Strategic Report28Young&Co.s Brewery,P.L.C.|Annual Report 2021Risk/uncertaintyPotential impactMi

243、tigationChange in risk/uncertaintyRegulation12.We are required to meet a range of ever-increasing compliance,regulatory and health and safety obligations in the operation of our business.A failure to comply with these obligations could damage our reputation,see us being fined,and,as regards health a

244、nd safety,result in an accident or incident occurring involving injury,illness or even loss of life.All of these could possibly lead to a reduction in our revenue and lower growth rates.Increases in the cost of compliance could have an impact on our margins and result in lower profits.We carefully m

245、onitor legislative developments,and our training programmes,policies,processes,and audits are designed to promote and achieve compliance with our obligations.Health and safety audits are undertaken by a third party who also works with us to ensure changes in health and safety practices and procedure

246、s are incorporated into our business and reviewed on a regular basis.Insurance cover to help with any financial compensation that may be payable as a result of an accident or incident has been taken out.Brexit 13.The UKs new trade deal with the European Union(“EU”)still leads to a degree of uncertai

247、nty affecting the supply chain and labour market.The new trade deal could make it costlier for the UK to trade with the EU due to additional border controls and the potential delays this will cause.It could also become more difficult for UK businesses to hire from the EU.We are a UK business with a

248、predominantly UK supplier base and fixed price arrangements in place across many of those relationships.Whilst we are confident there will be little or no impact on our supply chain,the ability to flex our food and drink offer on a daily basis will further mitigate any potential shortages.We are als

249、o an employer of choice with a strong track record of retaining talent.We also have an active and progressive internal training programme that is developing our own talent pool for the future;this is expected to help mitigate staffing issues should certain of the groups EU staff be forced to leave t

250、he UK due to them not obtaining pre-settled status or indefinite leave to remain status,albeit we are looking to support them to stay in the UK.See also 4 and 10.Key to change in the risk/uncertainty level from the prior period Decrease No change IncreaseStrategic Report29Young&Co.s Brewery,P.L.C.|A

251、nnual Report 2021Building a more sustainable YoungsOur approach to ESGCustodians of our proud heritage:we are taking steps today to protect our planet and make a positive impact on those in our pub estate,supply chain and communities.Community Play a positive role in our communities and give back wh

252、ere 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.Environment Aim to reduce,reuse and recycle our waste in the most sustainable way possible.Implement new emissions saving technologie

253、s across our estate.Work closely throughout our supply chain to improve the environmental impact of our produce,from farm to fork.People We focus on the wellbeing of our colleagues with comprehensive financial and mental health support.Engage and empower our teams with regular communication and comm

254、itment to their career pathway.We foster diversity and inclusion through our approach to appointments and training.Strategic Report30Young&Co.s Brewery,P.L.C.|Annual Report 2021Health and wellbeingAgainst the backdrop of the past year,the companys long-standing wellness project that puts physical,me

255、ntal and financial wellbeing at its heart was tested,but effective.Key cornerstones of this initiative are the offer of fully-funded counselling at no cost to the employee and our partnership with Salary Finance which provides support in the form of loans,savings projects,and free financial support

256、and advice.For a substantial portion of our year,and in keeping with the rules of the Coronavirus Job Retention Scheme,many of our team were on furlough pay which was based on 80%of their basic pay,without taking into account the tips and gratuities that boost their normal income.In recognising the

257、impact of their reduced pay,we encouraged staff to use their holiday pay to boost their earnings as well as directing employees to the financial support available through Salary Finance and the Licensed Trade Charity,who provided financial grants of more than 4,500 to our team members during the per

258、iod.Having worked hard to build a team of mental health first aiders,mental health first aid champions and supporters across the business,we were able to understand and offer support to our teams remotely.With powerful communication channels,we were able to keep in touch with all our teams and signp

259、ost for help where and when it was most needed.Our fully-funded counselling at no cost to the employee continued,albeit using electronic means rather than in person.All employees,whether at work or on furlough,were encouraged to access mental health training provided by the Licensed Trade Charity.Th

260、ere were several employees who successfully completed the Level 2 Certificate in Understanding Mental Health First Aid and Mental Health Advocacy in the Workplace through the distance learning unit of Milton Keynes College.Our social media channels echoed this support infrastructure,notably in the f

261、orm of the closed Facebook page,Keeping in Touch at Youngs.This allowed us to feature regular videos from Patrick Dardis,share resources,engage in national initiatives such as clapping for the NHS,and circulate regular editions of our internal newsletter,the Ram Pages,which was tailored to reflect t

262、he fact that most team members were not working.People“Our people are,and always have been,our greatest asset.In the face of the unprecedented challenges posed during the last year,we continued and strengthened our commitment to our team of over 4,000.”As we welcome back our colleagues and customers

263、,we are as passionate as ever to build on our long-standing commitments to our people,community and environment.Together at Youngs.We continue to engage with our employees about their mental health through our Mental Health First Aiders scheme.Strategic Report31Young&Co.s Brewery,P.L.C.|Annual Repor

264、t 2021Engagement and empowermentAgainst the challenges heralded by temporary closure,we made great efforts to include all employees in the latest developments regarding the business throughout the year.In addition to the Keeping in Touch at Youngs Facebook page,regular team communications were share

265、d via WhatsApp groups and“check in”calls from line managers to staff who were away from the business.Patrick Dardis also invited all general managers and employees based at Riverside House to attend an interactive presentation of the companys results via Zoom and answered any questions that were sub

266、mitted.During periods of normal operation,the Information and Consultation Committee met to provide a formalised communication cascade channel.The board has always taken a strong interest in supporting all employees to fulfil their career ambitions.Our training and development programmes will contin

267、ue to be the lynchpin of our business,supporting people as they progress on their career pathway,or enhancing their knowledge and personal understanding to be more confident in their role.We took the opportunity to refresh and evolve our internal development programmes so that we were able to contin

268、ue training,even with the covid-19 restrictions in place.Diversity and inclusionAs noted on page 70 of our corporate governance report and our separately published Gender Pay Gap Report,the importance of diversity,including gender balance,is acknowledged in making any appointment as well as employee

269、s subsequent training,career development and promotion.The board believes that all appointments should be merit-based against the selection criteria created for each role regardless of the applicants sex,race,ethnic origin,disability,sexual orientation,religion or belief,marital status or age.We wer

270、e pleased to report that our furlough-adjusted mean gender pay gap of 10.9%remains substantially better than the national average of 15.5%.Our pro-active flexible working policy and use of the furlough scheme allowed us to retain and support employees to manage the impact of covid-19 on childcare,sh

271、ielding and normal work arrangements.Our commitment to diversity and inclusion starts on our induction programme and is a key element of the manager training course.During the year,we were immensely proud of Perry from Smiths of Smithfield who featured in the Made You Look project,a visual celebrati

272、on of talented black chefs at all levels who work in the countrys best restaurants.4,185employees(2020:5,145)85%of our general manager vacancies were filled internally(2020:72%)People continuedTogether at Youngs.Our commitment to diversity and inclusion starts on our induction programme and is a key

273、 element of the manager training course.We were pleased to report that our furlough-adjusted mean gender pay gap of 10.9%remains substantially better than the national average of 15.5%.Strategic Report32Young&Co.s Brewery,P.L.C.|Annual Report 2021CharityAt the start of the period,as detailed on page

274、 3,our pubs rose to the challenge of supporting our communities by donating meals to individual charities,the NHS and other key workers,while doing our utmost to prevent the waste of perishables.Elsewhere,it was fantastic to be able to offer free accommodation to patients of the Royal Marsden NGS Fo

275、undation Trust who were receiving treatment during the second national lockdown.This desire to give back to our community has long been integral to our identity.As the covid-19 pandemic resides,we look forward to once more engaging in myriad charitable initiatives focussed around our third month-lon

276、g collective fundraising effort in October where we will stage a range of events across our pubs and Riverside House to support both local and national charities.CustomersLooking after our customers lies at the heart of everything we do.Our focus on responsibly sourced,seasonal and local British pro

277、duce lends itself to nutrient dense food that tastes delicious.One of our latest openings,Albans Well,exemplifies this with its championing of underutilised,ethically sourced,local,plant-based ingredients.Elsewhere,our enthusiastic adoption of more plant-based options in our menus throughout our est

278、ate is embodied in our updated Burger Shack menu that includes the Classic Plant burger patty,and vegan CHKN katsu fillets.Likewise at the bar,while ensuring a diversity of choice that includes original recipes,we have undertaken robust initiatives to offer low and zero ABV spirits and beers as well

279、 as low and zero sugar soft drinks throughout our estate.The stop-start nature of the last year drew 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 hosting the local farmers market at the Red Barn

280、in Blindley Heath or combatting loneliness through the Alexandras Meetup Mondays.Our team continued to play their part in the community during lockdown.For example,in an effort to keep engaging with the local community of quiz-going regulars,the Alexandras Mick hosted a weekly,free,interactive quiz

281、using his personal Twitter account during the periods of lockdown.This soon grew to include national participants and reached far beyond his original audience of regulars who attended the weekly quiz at the pub.All this was encapsulated in our short film,A House is Not a Home,which reaffirms pub cul

282、ture 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.Looking back on the last few years makes us as excited as ever to serve our communities once more.CommunityW

283、e care deeply about our customers and the communities in which they reside.Where possible,we look to maximise our positive externalities by supporting local charities and businesses.SuppliersDespite our proud origins in the London Borough of Wandsworth,our geographical reach has grown,and with it ou

284、r 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,to Paul Rhodes,our new artisan baked goods supp

285、lier in Greenwich,or our amazing heritage tomatoes sourced from Nutbourne Nurseries.The challenges posed by the past year have put an acute strain on the entire hospitality supply chain and with this in mind we are proud to have always done our best to ensure suppliers received payments in a timely

286、manner for the wonderful produce they provide.Together at Youngs.Mick and Sarah from the Alexandra(Wimbledon)were proud recipients of the Merton Mayors award for their contribution to helping others during the pandemic.Strategic Report33Young&Co.s Brewery,P.L.C.|Annual Report 2021EnvironmentReduceIn

287、 2017,we eliminated all waste to landfill and have repeated this feat every year since.Elsewhere,as part of the exciting new developments listed on pages 8 and 9,we have adopted the use of waterless urinals.While eliminating odours and reducing costs,the crucial role of this newly adopted technology

288、 is the ability to save,on average,100,000 litres of waste water per urinal per year.ReuseWhere it is not feasible to reduce waste,we have looked to reuse items throughout our supply chain.Building on our removal of plastic straws with biodegradable alternatives in 2018 and simply cups scheme in 201

289、9,we looked to circumvent the practice of single use pint glasses in our gardens by purchasing stock of washable,shatter-proof substitutes that can be used up to 100 times.RecycleIn recent years,we have doubled down our efforts at recycling waste that can neither be reduced nor reused.From a base of

290、 48%in 2012,we have consistently recycled over 68%of our waste over the last four years.The impact of intermittent closures over the past year meant both overall collected waste and recycled waste volumes declined by over 40%,but we limited the percentage fall in waste recycled to 1.4%.We look forwa

291、rd to picking up where we left off,to educate and enact the best waste management system we can.For many years now,we have been collaborating with our operational partner,Olleco,on the successful initiative of recycling used cooking fat for use in biofuel.Up until our covid-19 induced closure in Mar

292、ch 2020,uptake improved every year to reach an annual total of 355,605 litres.EmissionsTogether with our customers,we are passionate about reducing our emissions and have therefore signed up to be part of the Zero Carbon Forum(“ZCF”)in 2021.This will enable us to collaborate on best practice within

293、the hospitality industry,from the identification of carbon intensive practices to producing a clear road map to zero emissions.We have a long tradition of carbon saving initiatives and energy efficiencies throughout our estate as detailed in our SECR disclosures starting on page 70.With every refurb

294、ishment,we implement energy saving technologies targeting scope 1 and 2 emissions including,but not limited to:our Building Management System which reduces human error in the control of our heating,cooling,lighting,refrigeration,and coffee machines;energy saving Envirostart and Eco Flo technology fo

295、r our refrigeration and cooling equipment;cellar management and Cheetah extraction systems aimed at reducing energy consumption in our cellars and kitchens respectively;and all company car purchases for our pub teams and support functions mandated to be either hybrid or electric.While ensuring all n

296、ew investments adhere to the latest energy saving technologies,every year we survey several of our existing sites as part of ESOS(“Energy Saving Opportunity Scheme”)to identify areas of improvement in our pre-existing infrastructure.Going forward,we have ambitious plans to put yet more downward pres

297、sure on our scope 3 emissions,recognising both our influence and our wish to be consistent in all our activities.We are especially excited to trial the installation of the first of our EV charging points at pubs in the autumn,allowing customers to reliably charge their cars while enjoying their Sund

298、ay lunch or mid-week catch up with friends.Our locally sourced,fresh British produce naturally lends itself towards a lower transportation footprint and to high environmental standards.We have also worked closely with our supplier network this year to reduce the number of deliveries where possible.W

299、henever dealing with any new supplier we ensure that their commitment to the environment is in line with our values.The closure of many of our sites allowed us to reflect further on our impact on the environment.Looking back on our efforts in recent years we can see how far we have come in reducing

300、average emissions and waste per site.Strategic Report34Young&Co.s Brewery,P.L.C.|Annual Report 20218,430tCO2e Emissions*(2020:16,974)4,351 tonnesWaste recycled(2020:7,458 tonnes)“Our locally sourced,fresh British produce naturally lends itself towards a lower transportation footprint and high enviro

301、nmental standards.We work closely with our suppliers to reduce the number of deliveries where possible and ensure they share our values and commitment to the environment.”ProduceLastly,we are excited to resume service of our famed,best in class,seasonal,British food and drink.It is no coincidence th

302、at ingredients produced in a sustainable way also tend to be the most delicious.In 2020,as part of our membership of the Sustainable Restaurant Association,we were awarded a best in class three-star rating.In the same year,it was also pleasing to see us nominated in two award categories:Celebrate Lo

303、cal and Seasonal and Source Fish Responsibly while also featuring in the top 20 of sustainable businesses in their Food Made Good Business of the Year category.In summaryThe period of closure has allowed us to reflect on the many ESG initiatives we have in play at present,while exciting us to go fur

304、ther than ever before as we look forward to the year ahead.Together at Youngs,we care deeply about our communities,people and environment and look forward to giving back in the most sustainable and effective way possible.We cannot wait to serve you once more.Together at Youngs.We champion underutili

305、sed,ethically sourced,local,plant based ingredients.Youngs have been recognised in the Sustainable Restaurant Associations top 20 sustainable businesses.*total of scope 1 and scope 2 emissionsStrategic Report35Young&Co.s Brewery,P.L.C.|Annual Report 2021Together at Youngs The Burger Shack is back!“A

306、fter breathing new life into the brand,we launched the new menu with greater variety and unique Shack Session beers.”The Shack is back with our newly developed menu of jaw-dropping burgers,hot dogs,and sides across our many garden huts,tents and garden spaces.We believe in juicy patties,squidgy buns

307、 and chin-dribbling sauce,and thats what youll get every time you bite into one.Our tasty new plant-based alternatives complement our menus to provide something for everyone.Bring on the napkins!Strategic Report36Young&Co.s Brewery,P.L.C.|Annual Report 2021Business and financial review87.0mManaged r

308、evenue19.2mManaged operating lossManaged housesIn one of the most unique years in our 189-year history,we began and ended the period with all our pubs closed to the public.Over the course of the year,there were only 17 full weeks of trade possible and for the majority of our managed houses they have

309、 remained shut since Christmas.As a result,total managed revenue is down by 70.9%to 87.0 million.After the necessary closure of our pubs in late March,it was not until 20 July,following a 16-week lockdown,when we decided to reopen and trade all our 205 managed houses,setting the tone that Youngs was

310、 open for business.The delay allowed us to put in place all the necessary covid-19 safety protocols without compromising on the great Youngs pub experience.Our managers had the time to thoroughly retrain our returning teams,dust away any cobwebs from the shuttered summer months and prepare our wonde

311、rful pubs ready to welcome back our loyal customers.After a slow start,customer confidence improved as the appetite grew to show support for their local.In August,we benefitted from the Government funded“Eat Out to Help Out”campaign,serving over 370,000 customers,which was a huge boost in driving fo

312、otfall through the early midweek days,with diners attracted by the headline 50%discount.Food sales driven by the campaign traded ahead of the prior year on a like-for-like basis as our head chefs sought to entice customers to trade up with a wonderful selection of premium dishes such as posh surf&tu

313、rf,rack of Dorset lamb and beef Wellington on offer to share.Supported by some glorious summer weather,we were able to make the most of our generous outdoor trading areas,and total sales for the month were at approximately 90%of last year on a like-for-like basis.From September,the Government introd

314、uced restrictions on group numbers,required full table service and face coverings to be worn by staff and customers,and imposed a 10pm curfew,all of which negatively affected trading to approximately 80%of last year.However,as the weather started to turn heading into October,the introduction of Tier

315、 2 status for London affected 80%of our managed estate and limited the mixing of households inside our pubs,forcing groups of friends to meet outdoors in order to socialise.Our previous investment in external trading spaces with fabulous gardens,unique huts and iconic themed tents was perfectly plac

316、ed to help provide an attractive environment for our customers.Even with the heightened restrictions,the resilience and loyalty of our customers remained strong and sales during October performed ahead of our expectations at 73%of last year.On 5 November,all our pubs closed,initially for a four-week

317、 lockdown.Although they were allowed to reopen in December,trading was short-lived as the pandemic worsened and more pubs entered the Governments higher tier status which left them unable to stay open.Unfortunately,there was no festive excitement and by the end of the year all our pubs had closed an

318、d remained so for the rest of the period.The costs incurred when shutting down and reopening our pubs cannot be underestimated.We faced staff costs as our teams returned to their pubs days in advance of opening the doors,unnecessary wastage of food and drink products unable to be sold or reused,as w

319、ell as the time of management to ensure the process ran in an orderly fashion.Although we received support from the Government and worked hard to streamline our business during the first lockdown,it was the extensive periods of closure during the year that solely contributed to an operating loss of

320、19.2 million.When excluding our adjusting items,we recognised an adjusted operating loss of 18.6 million.Encouragingly,our managed operating margin was 16.1%for the August to October trading periods between the first two lockdowns.InvestmentWe continue to place great value on the investment in our p

321、remium pubs,and despite the impact of the pandemic we have remained busy investing 17.0 million in our managed estate over the course of the year.In the first months of the period,we prioritised completing projects that were paused in March,thus ensuring they were able to open only a couple of weeks

322、 later than the rest of the estate.At the Green Man(Putney),a full refurbishment which added more than 50 new covers proved to be a big success with locals,whilst the investment in existing and new bedrooms at the Seagate Hotel(Appledore),City Gate(Exeter)and the Bear Hotel(Esher)increased our hotel

323、 room stock to 688,of which 356 are now boutique.Following a successful return to trading in the late summer,we kick-started the investment programme in our existing estate from September with projects at the Duke of Cambridge(Battersea),Duke of Wellington(Notting Hill)and the Duke on the Green(Fulh

324、am).These much-loved pubs,at the heart of their local communities,received a new lease of life as we restored traditional features in their bar and dining areas.Ahead of the winter period and in anticipation of further prolonged periods of restrictions on internal trading and social distancing,we ac

325、celerated our garden investment plans.We invested 1.1 million adding huts,new stretch tents,furniture and heaters.In order to capitalise on the short-term Strategic Report37Young&Co.s Brewery,P.L.C.|Annual Report 2021Business and financial review continued“We invested 1.1 million adding cabins,new s

326、tretch tents,furniture and heaters ahead of winter and in anticipation of further prolonged periods of restrictions on internal trading and social distancing.”requirement for additional external covers,we have been able to obtain temporary licences and/or convert car parking space to increase capaci

327、ty,such as at the Oyster Shed(Bank)with an extra 120 covers along the riverside,and the Northcote(Clapham)where the temporary pedestrianisation of Northcote Road has been filled with tables outside the pub and has been a huge success.With all pubs closed in the final months and with one eye on furth

328、er potential growth opportunities for the coming year,we kicked off additional pub investments in January.At the Windmill Hotel(Clapham Common),internal bar and dining areas were completely revamped,including a vibrant dining space and snug lounge spaces creating cosy new seating areas.Whilst at the

329、 Oyster Shed,a further 87 covers were created by extending the first-floor mezzanine;this will come into its own when we head into autumn.In total,we completed 16 major projects,including schemes at the Bear(Esher),Cock Tavern(Fulham),Crooked Billet(Wimbledon Common),Grange(Ealing),Park(Teddington)a

330、nd the One Tun(Fitzrovia).It has been a quiet year for acquisitions,as we added just one new pub,Albans Well.The offer focusses on sharing plates and a delicious range of drinks featuring morning coffees,craft beers and signature cocktails the perfect place for your all-day dining experience.Followi

331、ng its acquisition last year,we also completed one of our most stunning recent investments at Enderby House,nestled on the Greenwich Peninsula.It boasts an array of floors and feature rooms where you can choose between the ground floor pub or the stunning terrace for perfect views over the Thames.La

332、ter in the period,we completed the acquisition of a freehold building in Stow-on-the-Wold,which,subject to planning,will add further boutique bedrooms to the Bell Inn,a countryside getaway in the Cotswolds.During the period,we transferred three businesses from our tenanted division.The Royal Oak(Bet

333、hnal Green)is an iconic pub that has continued to trade since its transfer;it has featured on the small and big screen,and is located just yards away from East Londons bustling Columbia Road Flower Market.The Spread Eagle(Wandsworth)and the Ship Inn(East Grinstead)have been closed pending planned investment in the coming year,with the Spread Eagle forming part of an exciting new boutique hotel and