Young & Co.'s Brewery plc (YNGA) 2014年年度報告「AIM」.pdf

《Young & Co.'s Brewery plc (YNGA) 2014年年度報告「AIM」.pdf》由會員分享，可在線閱讀，更多相關《Young & Co.'s Brewery plc (YNGA) 2014年年度報告「AIM」.pdf（68頁珍藏版）》請在三個皮匠報告上搜索。

1、FOR THE 52 WEEKS ENDED 31 MARCH 2014AT THE HEART OF THE COMMUNITYOur strategy is clear:we are focused on developing and growing an estate of premium pubs,primarily in London and the south east,with a clear emphasis on managed operations.We will continue to invest to maintain our premium position.We

2、are looking to acquire further managed houses,either packages or individual sites,to increase the size of both our Youngs and Geronimo operations.Strategic reportChairmans statement 3Chief executives review 5How we performed 6Principal risks and uncertainties 8Business and financial review 10Directo

3、rs reportOur board 16Committees 18Other disclosures 19Preparation and disclaimer 20Financial statementsIndependent auditors report 21Group income statement 22Statements of comprehensive income 23Balance sheets 24Statements of cash flow 25Group statement of changes in equity 26Parent company statemen

4、t of changes in equity 27Notes to the financial statements 28Five year review 56Shareholder informationNotice of meeting 57Explanatory notes to the notice of meeting 61Youngs pubs and hotels 62Senior personnel,committees and advisers 64Shareholder information 64Contents1YOUNG&CO.S BREWERY,P.L.C.ANNU

5、AL REPORT 2014 2014 2013%000 000 CHANGEREVENUE 210,768 193,677+8.8ADJUSTED OPERATING PROFIT(1)33,255 28,935+14.9OPERATING PROFIT 32,644 27,126+20.3ADJUSTED PROFIT BEFORE TAX(1)(2)27,171 23,224+17.0PROFIT BEFORE TAX(2)26,560 21,415+24.0ADJUSTED BASIC EARNINGS PER SHARE(1)(2)42.74p 36.34p+17.6BASIC EA

6、RNINGS PER SHARE(2)45.68p 33.78p+35.2DIVIDEND PER SHARE 15.52p 14.63p+6.1(interim and recommended final)NET ASSETS PER SHARE(3)7.86 6.94+13.3All of the results above are from continuing operations.(1)Reference to an“adjusted”item means that item has been adjusted to exclude exceptional items(see not

7、e 9).(2)Where applicable the comparative figures for 2013 have been restated as a result of the adoption of the revisions to IAS 19 Employee benefits(see note 2).(3)Net assets per share are the groups net assets divided by the shares in issue at the period end.Financial highlights2 YOUNG&CO.S BREWER

8、Y,P.L.C.ANNUAL REPORT 20143YOUNG&CO.S BREWERY,P.L.C.ANNUAL REPORT 2014 Another very successful and positive year for YoungsOur clear strategy of maintaining and operating a premium and well-invested pub estate,focused on London and the south east,has seen us grow our revenues 8.8%in the year,and del

9、iver strong like-for-like growth of 6.7%.Growth has been achieved across both Youngs and Geronimo,and is proof of the strength and complementary nature of the two brands that we operate.Profits,once adjusted for exceptional items,have grown by 17.0%to 27.2 million.This year we have been able to inve

10、st 33.6 million in the business whilst managing to reduce our net debt.Once more it is this investment,which serves to underline our determination to maintain our premium positioning and to differentiate our estate from the many operators who,by necessity or choice,reined back on such investment dur

11、ing the recessionary years.Alongside this high quality estate,the quality of the teams in our pubs sets us apart.It is a measure of their talent and creativity that they consistently find innovative ways to attract and delight our discerning customers.The quality of the Youngs team is something of w

12、hich I am very proud.We are constantly looking to grow as a company,and the investment we have made in our estate has been achieved whilst maintaining a strong balance sheet.We are therefore in a very strong position to grow our estate further,both through acquisitions that either add to or compleme

13、nt our existing estate,and through extending our reach into cities and affluent market towns in the south and south east where we believe our premium offer will fit comfortably.The coming year will see acquisitions made during the last year feed through to our numbers and see our hotel offering expa

14、nd further with recently-developed accommodation coming on stream.There is increasing confidence,and evidence,that the economic recovery is here to stay,and I believe that we are uniquely positioned to deliver a high quality,differentiated and diverse offer as consumer sentiment continues to improve

15、.A great many people play a part in Youngs success,not least our customers,the teams in our pubs,our operational staff,my board colleagues,and,of course,our shareholders.All deserve my sincere thanks.NICHOLAS BRYANChairman21 May 2014Nicholas BryanChairman+8.8%Revenue+6.7%Managed house like-for-like

16、revenue+17.0%Adjusted profit before taxChairmans statement Strategic report Directors report Financial statements Shareholder information4 YOUNG&CO.S BREWERY,P.L.C.ANNUAL REPORT 20145YOUNG&CO.S BREWERY,P.L.C.ANNUAL REPORT 2014 Strategic report Directors report Financial statements Shareholder inform

17、ationOVERVIEWThis has been another very successful year for Youngs.Revenue increased by 8.8%to 210.8 million,with another period of strong like-for-like managed house growth,across both Youngs and Geronimo of 6.7%in total.This follows like-for-like sales in the two previous years of 6.0%and 4.6%.Adj

18、usted operating profit increased 14.9%to 33.3 million.Adjusted profit before tax was up 17.0%at 27.2 million and adjusted basic earnings per share increased 17.6%to 42.74 pence.The business generated strong operating cash flow of 47.3 million and we ended the year with net debt of 112.0 million(2013

19、:112.6 million).WELL POSITIONED,WELL INVESTED AND GROWINGOur concentration on London and the south east,where the recovery is most pronounced,is a real advantage,and we also benefit from our very clear positioning at the premium end of the market.There are clear signs that the improving economic pic

20、ture is leading to increased confidence amongst our customers;we have seen this in footfall and in spending patterns,with customers trading up in both drink and food.This,combined with the warmer summer,helped us achieve an excellent start,even when compared with the Olympic and Jubilee effect of 20

21、12.The strong performance continued throughout the remainder of the year despite the wettest winter on record.There is real depth,richness and variety to our estate.We have maintained a consistently high level of investment throughout the economic cycle.We accelerated this last year,investing 33.6 m

22、illion with a record 19.8 million being invested on improving our existing pubs.We also acquired two new managed houses,the Weyside(a riverside pub in Guildford)and the Kings Head(a theatre pub in Islington).In addition we acquired three new tenancies,the New Inn(Ealing),Royal Oak(Bethnal Green)and

23、the Clapham North.Our total estate now comprises 242 pubs and hotels.In an exciting and highly competitive market we have two subtly different premium offerings,the Youngs managed and Geronimo brands.We have pubs across London including some of the best riverside locations along the Thames,and we ha

24、ve a particularly strong presence in south west London,with many pubs that are particularly vibrant during the Boat Race,Wimbledon and international rugby matches.We also have a small but quality presence in high-footfall locations such as Heathrow,St Pancras and the two Westfield shopping centres,w

25、hich we would like to grow.In addition,we continue to invest heavily in our hotel offering,creating very high quality boutique rooms.Amidst all this variety however,there is one common strand:ours are premium,well invested pubs run by teams who aim to play a pivotal role in the communities in which

26、they operate,maintaining our traditional values in an environment that appeals to todays consumers.We have ambitions to expand and enhance our estate further.We continue to seek out opportunities to buy single sites that fit with our existing estate,to extend into those cities and market towns in th

27、e south and south east where our premium offering will find a natural home,and to acquire packages of pubs that add further to the depth,richness and variety that already exists.Stephen GoodyearChief ExecutiveChief executives reviewManaged houses 128(2013:125)Tenanted houses 79(2013:78)Geronimo Inns

28、 35(2013:34)6 YOUNG&CO.S BREWERY,P.L.C.ANNUAL REPORT 2014How we performedWe measure the development,performance and position of our business against a number of key indicators.Adjusted profit before tax M This is our profit before tax on continuing operations only,adjusted to exclude any exceptional

29、 items for the group.20120305321034153620382540304220132014Adjusted earnings per share pence This is our adjusted profit before tax,but after tax has been deducted,divided by the weighted average number of ordinary shares in issue.201220132014Like for like revenue%This is our revenue growth for this

30、 period compared with the previous period for our managed pubs and hotels that traded throughout both periods.Revenue M This is our total group revenue,including both managed and tenanted businesses.20120123465720132014201216017018019020021022020132014RevPAR This is the our revenue per available bed

31、room;it is the average room rate achieved multiplied by the occupancy percentage.20124748495051525320132014EBITDA M This is our adjusted earnings before interest,taxes,depreciation and amortisation by business segment.Interest cover(times)This is our adjusted operating profit divided by our finance

32、costs.2012012345620132014Gearing%This is our net debt divided by our net assets(expressed as a percentage).Recycling tonnesThis is the amount of waste we recycleand divert from landfill.2012010203040201320142012343638404246442013201423.24.936.3433.639.849.264.627.25.642.7429.544.952.026.721.34.333.4

33、137.238.348.856.0179.0193.7210.82012010203040201320143,0652,3132,2197YOUNG&CO.S BREWERY,P.L.C.ANNUAL REPORT 2014 Strategic report Directors report Financial statements Shareholder informationSOUNDLY FINANCED,ASSET BACKED AND PROGRESSIVE DIVIDEND POLICYDuring the year we successfully secured new long

34、-term banking facilities,and with current gearing of 29.5%,we are in a strong position from which to pursue our growth ambitions.We remain as committed as ever to a progressive dividend policy.On the basis of our strong trading performance,sound financial position and confidence in the outlook,the b

35、oard is recommending a final dividend of 8.07 pence per share,a 6.0%increase,resulting in a total dividend for the year of 15.52 pence(2013:14.63 pence).This final dividend,if approved,is expected to be paid on 10 July 2014 to shareholders on the register at the close of business on 6 June 2014.This

36、 would be the 17th consecutive year of dividend growth.OUTLOOKThe strong performance achieved in the year under review has continued into the current period and we continue to see evidence that the consumer backdrop is improving.Managed house revenue in the first seven weeks of the new financial yea

37、r was up 8.5%in total and 7.2%on a like-for-like basis.The current year will benefit from a full years trade from the five new acquired pubs,the re-launched Bulls Head(Barnes)and the 43 recently developed bedrooms.These will more than offset the loss of the Tin Goose,a Geronimo pub in Heathrows Term

38、inal One,which like the terminal itself is due to close at the end of the summer.Overall,the consistently high level of investment in our estate combined with the hard work put in by our teams across the group,is clearly paying off.This once coupled with the steadily improving economic news flow giv

39、es us every reason to be confident that the current year will be another positive one for Youngs.Without the talent,commitment and passion of our colleagues across the group none of this success and confidence in the future would be possible.I,and my colleagues on the board,greatly appreciate all th

40、at they do.We are confident that our strategy,when combined with our strong financial profile and progressive dividend policy,will continue to deliver superior returns to our shareholders.STEPHEN GOODYEARChief Executive21 May 20148 YOUNG&CO.S BREWERY,P.L.C.ANNUAL REPORT 2014Our revenue is largely de

41、pendent on consumer spending in our managed houses.A consumers decision of if and where to spend his or her money can be affected by a broad range of matters(including confidence in the economy,fears of terrorist activity,improved awareness of the potential adverse health consequences associated wit

42、h misuse of alcohol and the weather),all set against a background of an ever-increasing choice of where to go and what to do.We operate a defined benefit pension scheme,the Young&Co.s Brewery,P.L.C.Pension Scheme,which has to be funded to meet agreed benefit payments.The value of the scheme,and ther

43、efore its funding,is subject to changes in life expectancy assumptions,lower than anticipated performances of the stock market and by reduced bond yields.Various factors may result in the amount we pay for our key supplies(including food,drink,gas and electricity)being increased,making our offering

44、potentially less attractive to consumers if they are passed on.The pub industry is subject to a variety of taxes,including business taxes,duty on alcoholic beverages and property rates.Our financial structure involves bank borrowings.The business needs therefore to generate sufficient cash to repay

45、these debts and interest thereon.Interest rates are also subject to change.Our pubs and hotels are spread throughout southern England,albeit the majority are within the M25.Through them we provide an hospitable and welcoming home from home,often at the heart of their local community.They benefit fro

46、m customer-focussed designs,high service standards,quality food and market-leading drinks,all things that matter to 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.The

47、 scheme was closed to new entrants in 2003 and we make additional contributions over and above regular service contributions in order to address any funding deficit.We also maintain a close dialogue with the schemes trustee.Fixed-price arrangements are in place with some of our food and drink suppli

48、ers.Regarding 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.Through our membership of the British Beer and Pub Association,we seek to ensure that ap

49、propriate action is taken to minimise this risk.The board ensures the groups debt profile is long 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 manage this

50、 exposure.A reduction in our revenue could lead to lower growth rates.Variations in the difference in value between the assets of the 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 acc

51、ruals.Increased costs will have an impact on our margins and result in lower profits.A reduction in our revenue could also lead to lower growth rates.The introduction of new taxes and/or increases in the rates of existing taxes will result in lower profits.Our ability to trade as a going concern dep

52、ends on generating sufficient cash to meet these repayments.RiSk/UNCERTAiNTYCONSUMER-RELATEDFINANCIALPOTENTiAL iMPACTMiTiGATiONPrincipal risks and uncertaintiesThe principal risks and uncertainties facing the group are listed below.It is not an exhaustive list of all significant risks and uncertaint

53、ies;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 note 22,starting on page 45.9YOUNG&CO.S BREWERY,P.L.C.ANNUAL REPORT 2014 We are required to m

54、eet a range of ever-increasing health and safety obligations in the operation of our business(including in the areas of food and fire safety).We,and particularly our managed estate,are reliant on information systems and technology for many aspects of our business(including communication,sales transa

55、ction recording,stock management,purchasing,accounting and reporting and many of our internal controls).Last year the Government consulted on a statutory code to govern the relationship between tenants and large pub companies.An outcome to the consultation is awaited,but,for now and in view of the s

56、mall number of tenancies we have,it does not appear that,if introduced,the code would apply to us.We are dependent on having the right people throughout our organisation,whether that is in our pubs and hotels or in our head office.We rely on a number of key suppliers to provide our pubs and hotels w

57、ith food and drink.Part of our growth plan is built around us acquiring or developing more pubs and hotel rooms.Training programmes,processes and audits designed to promote and achieve compliance with health and safety legislation are in place.These audits are undertaken by a third party who also wo

58、rks with us to ensure changes in health and safety practices and procedures 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.Firewalls and anti-viru

59、s 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 if anything major happens at our head office or to our systems.The IT ne

60、eds of the business are regularly monitored and we invest in new technology and services as necessary.A fully-accredited legally-binding code which meets the latest requirements of the UK pub industry framework code of practice on how tied agreements should operate in the pub trade is in place;this

61、is different from a statutory code.We look to recruit and retain the best.The remuneration and reward packages we offer are competitive and designed to motivate staff.We have training and development programmes in place intended to ensure that our people have the right skills to perform their jobs s

62、uccessfully and achieve their full potential.Food and drink is sourced from a number of suppliers.Informal arrangements are also in place such that substitute suppliers or products could be used if required.We regularly review our choice of suppliers.We have relationships with a variety of third par

63、ties to ensure,as far as possible,that we are made aware of acquisition opportunities as and when they come up.A number of agents and landlords also have a short brochure setting out our preferred property criteria.A failure to comply could result in an accident or incident occurring involving injur

64、y,illness or even loss of life.This could damage our reputation,possibly leading to a reduction in our revenue and lower growth rates.Increases in the cost of compliance will have an impact on our margins and result in lower profits.Any failure of such systems or technology would cause some disrupti

65、on,and any extended period of downtime,loss of backed up information or delay in recovering information could impact significantly on our ability to do business.The imposition on us of a statutory code could increase the running costs of our tenanted business and reduce our revenue from it.Any incre

66、ase in costs will result in lower profits and any reduction in revenue could lead to lower growth rates.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 right capabilities.Supply disruption could affect

67、 customer satisfaction,leading to a reduction in our revenue and possibly lower growth rates.If we do not acquire the right opportunities when planned,or at all,our desired future rate of growth will be delayed or reduced.RiSk/UNCERTAiNTYOPERATIONSREGULATIONPOTENTiAL iMPACTMiTiGATiON Strategic repor

68、t Directors report Financial statements Shareholder information10 YOUNG&CO.S BREWERY,P.L.C.ANNUAL REPORT 201410Business and financial reviewMANAGED HOUSESOur managed operation has had another excellent year,combining strong revenue growth on both an absolute and like-for-like basis with an improving

69、 operating margin.Our total managed estate now comprises 128 Youngs pubs(including 18 hotels)and 35 Geronimo pubs.REVENUE AND PROFITSTotal revenue was up 9.6%driven by strong like-for-like growth of 6.7%,one of the leading performances in the industry.Revenue growth also resulted from the full year

70、benefit from last years successful acquisitions,the transfers from our tenanted operation and our two new managed houses.Together with a 0.8%point improvement in adjusted operating margin,this drove adjusted operating profit up 13.7%to 45.0 million.Total and like-for-like drink sales were up 10.2%an

71、d 6.3%respectively.We remain committed to an offer based around a premium portfolio of products,and in particular on being the natural destination of choice for craft beers.Beer sales were up 8.8%;the Youngs beer brands have had a good year and their new pump clip design has complemented Youngs new

72、contemporary brand identity.Youngs London Stout was launched towards the end of the year,a traditionally crafted,slightly sweeter tasting beer with a contemporary London feel;it is already proving very popular with drinkers.Wine sales were up 10.0%,with sparkling,ros and white wine leading the way,a

73、ssisted by the good summer weather.Food sales outperformed drink once more,with total food sales up 11.2%and 7.6%on a like-for-like basis.Our food offer,as always,is simplicity itself high quality seasonal British products,locally sourced and prepared in-house.Our third annual Scotch Egg challenge a

74、t the Ship(Wandsworth)created an online sensation with#ScotchEggChallenge trending on Twitter.Geronimos#AskRay digital foodie mini-series promoting chef expertise also proved very popular on iTunes.Our hotel performance has been strong,with room rates up 0.96,occupancy up 2.9%points and RevPAR(reven

75、ue per available room)up by 2.76 to 52.02.The operating margin has benefitted from the investment we have made in our operational team and technology over the past few years,working even more closely with our suppliers and benefitting from our growing market share.Reducing our environmental impact i

76、s a key priority and we have invested in initiatives to reduce our carbon footprint.By the end of the first quarter,LED light bulbs will have been fitted across the majority of the estate;we voluntarily committed to“WRAP”(Waste Recycling and Action Program)in 2012;and in the current year we recycled

77、 57%of our waste(2013:49%)with the majority of the rest going to refuse derived fuel and less than 8%(2013:15%)going to landfill.We also recycled 145,000 litres of waste cooking oil into Bio-Diesel.Our managed house philosophy is based on providing the freedom and opportunity for our highly motivate

78、d teams to perform.This involves ensuring that our pubs are well invested and exceed the needs of the community in which they serve,that our products are market leading and that our digital systems enable us to drive footfall and provide the superior service our customers expect whilst delivering an

79、 efficient back office.INVESTMENTOver the course of the year we have invested 25.8 million in our managed estate 7.0 million on new pubs,11.3 million on existing Youngs pubs,3.5 million on refurbishing existing Youngs hotels and developing new ones,and 4.0 million on Geronimo pubs.Our largest pub in

80、vestment was at the Bulls Head(Barnes),a recent transfer from tenancy.Here we have combined its position as one of Londons best loved jazz venues with a contemporary pub complete with a new dining area providing the modern British pub food for which we are renowned.Major investments were also made a

81、t the Adam and Eve(Fitzrovia),Castle(Tooting),Duke of Wellington(Notting Hill),Elgin(Notting Hill),Flask(Hampstead),Hand and Spear(Weybridge),Kings Head(Winchmore Hill),Lord Palmerston(Tufnell Park),Queen Adelaide(Wandsworth),Spread Eagle(Camden)and the White Hart(Barnes).At Horts(Bristol)we have ad

82、ded a 26 seat private cinema the“Directors Cut”.We have once more invested in our hotels as part of our strategy of maximising returns from our existing estate.Since Christmas we have been busy adding 30 rooms to two of our iconic pubs 17 at the Dog&Fox(Wimbledon Village)and 13 at the Orange Tree(Ri

83、chmond).Both pubs will join the top end of our hotel offer with exquisite boutique rooms throughout.The Dog&Fox rooms hint at its heritage as Wimbledons oldest public house and the Orange Tree can maximise its reputation as the u ltimate rugby pub.We are also adding an extra 13 rooms to the very pop

84、ular Windmill(Clapham Common),a hotel with high occupancy.All of these new rooms will be open in the first half of the new financial year.By September therefore,there will be hotel accommodation in 20 of our pubs,offering 443 bedrooms(2013:397)between them.YOUNG&CO.S BREWERY,P.L.C.ANNUAL REPORT 2014

85、 11 Strategic report Directors report Financial statements Shareholder informationCUSTOMER ENGAGEMENTTechnology continues to change the way we communicate with our customers.We have strengthened our e-marketing platform to deliver enhanced local engagement,maximise consumer loyalty and to position p

86、ubs right at the heart of their communities.With over 150,000 social media followers and an email database in excess of 750,000,we are actively listening to and engaging with our customers through their platform of choice.We are also embracing new technology within our pubs to improve the face-to-fa

87、ce communication with customers.Hand held order tablets,for example,are allowing us to improve speed of service in our larger pubs,exceeding customer service expectations and driving revenue.In order to foster customers engagement and loyalty we have continued to run successful butchery,fish and gam

88、e master classes in a number of our pubs.Geronimos“Tasty Tuesdays”have proved hugely successful,showcasing local suppliers who are an inspiration to both staff and customers alike.INDUSTRY RECOGNITIONGeronimo were awarded a 3*accreditation,the highest available,by the Sustainable Restaurant Associat

89、ion and were named Sustainable Large Restaurant Group of the Year 2014 in recognition of their focus on locally sourced food,exceptional level of environmental responsibility and commitment to working closely with the community.In March 2014,we were delighted to be crowned double award winners at th

90、e Publican Awards.Youngs was named Best Pub Company(51+sites)and Best Food Offer(51+sites)following a rigorous judging process including mystery visits,multiple site visits by the Publican Morning Advertisers editorial team and interviews with senior company representatives.TENANTED HOUSESAs previou

91、sly reported our tenanted estate has gone through a period of consolidation.As a result we have a tenanted business of 79 pubs,based mainly in London and the south east.The next stage of our strategic plan is already underway and by the end of the summer our tenanted operation will be re-launched as

92、 the Ram Pub Company,with its own unique identity.REVENUE AND PROFITSTenanted houses now represent 5.4%of group revenue.Nonetheless they remain an important part of our business.As a result of the reduction in the size of our tenanted estate by nine pubs over a two year period,our tenanted divisions

93、 sales were down 2.1%and operating profit was down 9.4%at 3.8 million.As a consequence of our strategic initiatives,we are confident that our tenanted operation will return to growth in the current year.“In March 2014,we were delighted to be crowned double award winners at the Publican Awards.Youngs

94、 was named Best Pub Company(51+sites)and Best Food Offer(51+sites).”12 YOUNG&CO.S BREWERY,P.L.C.ANNUAL REPORT 201412YOUNG&CO.S BREWERY,P.L.C.ANNUAL REPORT 2014 13Business and financial review(Continued)Strategic report Directors report Financial statements Shareholder informationINVESTMENTWe acquire

95、d three new tenancies in the summer,the Clapham North,New Inn(Ealing)and the Royal Oak(Bethnal Green).Four pubs including the Bulls Head(Barnes)were transferred to our managed estate.As part of our strategic plan we have identified six managed houses that we believe will deliver enhanced returns as

96、tenancies.Two of these transferred to the tenanted operation just before the year end with the remaining four planned to transfer over the summer.TENANT ENGAGEMENTThe new Ram Pub Company will be in place by the second quarter of the new financial year and once rebranded,with a new website and a stre

97、ngthened support team,will be able to change substantially the way in which we market and communicate with our tenants building on the important business partnerships we cherish.Our code of practice achieved industry accreditation and meets the latest requirements of the UK pub industry on how tied

98、agreements should operate.Although the majority of our tenancies are three or five year agreements,we also provide longer term agreements and other flexible solutions in order to attract the best operators currently available in the marketplace.PROPERTY AND TREASURYPROPERTYIn line with our revaluati

99、on policy,in January this year 20%of our estate was revalued by CBRE,an independent and leading commercial property and real estate services adviser.Using the results of this external valuation and as permitted by IAS 16 and in common with other listed pub groups,the remaining 80%of the pub estate w

100、as revalued internally,led by Andrew Cox MRICS,our Director of Property and Tenancies,using updated trading results together with managements knowledge of each pub.Improving trade and property prices have resulted in our total property value increasing to 559.2 million(2013:515.9 million),driven by

101、a net upward revaluation of 22.2 million and additions of 33.6 million offset by depreciation of 12.5 million.In accordance with IFRS,individual increases in value have been reflected in the revaluation reserve in the balance sheet(except to the extent that they had previously been revalued downward

102、s)and individual falls in value below cost have been accounted for through the income statement.TREASURYAt the year end net debt was 112.0 million,down 0.6 million on the previous year.A record operating cash flow of 47.3 million and receipt of the final 5.0 million instalment from the Wells&Youngs

103、share disposal offset a 33.6 million investment in the business,of which 19.8 million was invested in our core estate a group record.We recently took the opportunity to extend our banking facilities in terms of both amount and duration.Total facilities,provided by the Royal Bank of Scotland and Barc

104、lays,are now 175 million.These comprise a new 50 million seven year term loan and a new 75 million five year revolving credit facility.These new facilities sit alongside our existing longer dated 50 million term loan.At present 90 million(falling to 80 million in December 2014)of our 112.0 million n

105、et debt is fixed through interest rate swaps;these swaps plus the banks margin result in a combined rate of just below 4.8%.In addition we have entered into a forward starting 30 million swap,which runs from the expiry of one for the same amount in December 2015 for the remaining life of the new ter

106、m loan.As a consequence,we would then expect an interest rate of 5.1%on the hedged element of our bank debt.We benefit from lower interest rates on our variable rate bank debt,but the board believes it is important to provide some protection from adverse movements in interest rates,especially now th

107、at the economy is beginning to improve and these historically low interest rates could start to rise.Our interest rate swaps are valued each year based on market rates at the balance sheet date.These swaps,with maturities that perfectly match the underlying liabilities,have been designated as cash f

108、low hedges and the 5.5 million improvement(2013:1.6 million adverse)in their market value is taken through the statement of other comprehensive income.In our opinion,with the combination of our new long term financing,interest costs being covered 5.6 times by adjusted operating profit,net debt conti

109、nuing to fall in absolute terms and as a multiple of EBITDA(now 2.45 times)and gearing of 29.5%,the business is soundly financed.Note 22 in the financial statements describes in detail the groups financial position,its cash flows,liquidity position and borrowing facilities.It also summarises the gro

110、ups capital management and principal treasury objectives and the tools it uses to monitor and manage its exposure to certain financial risks.The group has a predominantly freehold backed balance sheet and committed facilities of 175 million in place,of which 115 million was drawn down at the period

111、end,none of which needs to be refinanced until March 2018.As usual,these financial statements have been prepared on a going concern basis.RETIREMENT BENEFITSWe have a final salary defined benefit scheme which has been closed to new entrants since 2003.During the course of the year our retirement ben

112、efit deficit has reduced by 2.8 million to 6.0 million as a consequence of an improvement in investment returns and slightly higher inflationary expectations offset by marginally higher bond rates used to discount the schemes liabilities.Our defined contribution schemes 14 YOUNG&CO.S BREWERY,P.L.C.A

113、NNUAL REPORT 201414YOUNG&CO.S BREWERY,P.L.C.ANNUAL REPORT 2014 15Business and financial review(Continued)“It has been a successful year from a shareholder perspective,with strong revenue and earnings growth,record levels of investment in our core estate.”Strategic report Directors report Financial s

114、tatements Shareholder informationwhich,following the Governments introduction of its Automatic Enrolment scheme an integral part of its Workplace Pension Reform,are open to all our employees.With effect from 1 January 2013 the group has adopted the revised IAS 19 Employee benefits which has been app

115、lied retrospectively and therefore triggered a restatement of the prior year comparatives.Although the revisions have had no impact on the deficit at either balance sheet date,it has changed the amounts recognised in the income statement and in other comprehensive income.The effect has been to reduc

116、e the 2013 profit after tax for the period by 696,000 with a compensating credit in other comprehensive income.SHAREHOLDER RETURNSThe combination of revenue rising by 8.8%and adjusted operating margin increasing by 0.8%points has resulted in adjusted PBET growing by 17.0%to 27.2 million or by 24.0%t

117、o 26.6 million on an unadjusted basis.This performance,as in previous years,is the result of a clear strategy to deliver earnings and dividend growth.EARNINGS PER SHAREAdjusted earnings per share have grown by 17.6%to 42.74 pence,a faster rate than the underlying profits as a result of the lower tax

118、 charge.Our unadjusted EPS was up 35.2%at 45.68 pence,after the following exceptional items:A non-cash 0.3 million profit movement arising from the reversal of previously revalued pubs as a result of the revaluation of our pub estate;Acquisition costs of 0.6 million,including legal and professional

119、fees and stamp duty,incurred on the purchase of the five freehold pubs;A 0.3 million capital gains tax provision for the shares held in the Employee Share Ownership Scheme.A liability is recognised at each balance sheet date for the potential capital gains tax that could arise on the disposal of sha

120、res to the members of the scheme on retirement;this is impacted by an increasing share price;and A 2.6 million income statement tax credit in respect of a decrease in our deferred tax liability arising as a result of a 3%reduction in the main UK corporation tax rate,substantially enacted before 31 M

121、arch 2014.DIVIDENDSAs a result of our improved performance we are recommending a 6.0%increase in the final dividend to 8.07 pence per share,making a total dividend for the year of 15.52 pence.The dividend is covered 2.8 times by our adjusted earnings.This increase,like the sixteen before it,reflects

122、 our progressive dividend policy which has delivered year-on-year growth whilst providing the spare capacity to enable us to continue to invest for the future growth on which this long term track record depends.In summary,it has been a successful year from a shareholder perspective,with strong reven

123、ue and earnings growth,record levels of investment in our core estate,five new freehold pubs acquired,all achieved whilst reducing net debt both in absolute terms and as a multiple of EBITDA to 2.45 times(2013:2.77 times).On behalf of the boardSTEPHEN GOODYEARChief Executive21 May 201416 YOUNG&CO.S

124、BREWERY,P.L.C.ANNUAL REPORT 201416EDWARD TURNERMANAGING DIRECTOR GERONIMO INNSJoined in 2010 and appointed to the board in 2013.Has overall responsibility for Geronimo Inns,including strategy and pub acquisitions and developments within the Geronimo estate.Joined Geronimo in 1999,becoming operations

125、 director that year,and then held the position of commercial director for a number of years before Geronimo was acquired by Youngs.Previously in retail management with Mitchells&Butlers(198999).Aged 46.TORqUIL SLIGO-YOUNGHUMAN AND INFORMATION RESOURCESJoined in 1985.Held a number of senior positions

126、 in different areas of the company before being appointed to the board in 1997.Has overall responsibility for personnel,health and safety and the groups technological needs.Previously worked for stockbrokers Bell,Lawrie,Macgregor&Co.Aged 54.STEPHEN GOODYEARCHIEF EXECUTIVEJoined in 1995 as sales dire

127、ctor.Appointed to the board in 1996 as sales and marketing director.Appointed chief executive in 2003.Previously worked for Courage Ltd(1974-95)in a number of senior roles.Is the current Master of the Brewers Company,one of the oldest Livery Companies in the City of London.Aged 58.PATRICK DARDISRETA

128、ILJoined in 2002 and appointed to the board in 2003.Has overall responsibility for the operation of the Youngs managed estate as well as for Youngs managed house pub acquisitions and developments.Previous positions have included director of retail operations at Wolverhampton&Dudley Breweries PLC(now

129、 Marstons PLC),business development with Guinness Brewing and retail management with Whitbread PLC and Courage Ltd.Aged 55.DAVID PAGENON-EXECUTIVEAppointed to the board in 2008 and as chairman of the companys remuneration committee in 2011.Also a member of the companys audit committee.His current re

130、staurant portfolio includes MEATliquor,Franco Manca and The Real Greek.Was co-founder and chairman of The Clapham House Group,owner of Gourmet Burger Kitchen and other restaurant brands.Prior to that,spent 27 years with Pizza Express where at various times he was chairman,chief executive and the own

131、er/manager of the groups largest franchisee organisation.Chairman of Fulham Shore,a quoted company,which is to invest in distinct growth restaurant businesses.Aged 61.NICHOLAS BRYAN,B.A.,F.C.A.NON-EXECUTIVE CHAIRMANAppointed to the board in 2006 and as non-executive chairman in 2011.Member and chair

132、man of the companys audit committee as well as a member of the companys remuneration committee.Co-founder and chief executive of the Innserve Group.Has particular expertise in the hospitality,property and brewing sectors gained through various positions within Courage(including managing director of

133、Courage UK(1992-95).Has held other chairman and non-executive director roles while a management committee member of Investcorp(1995-2001).Began his career in finance as a chartered accountant and with positions at Lonrho and Hanson.Aged 61.PETER WHITEHEAD,F.C.A.FINANCEJoined the company and the boar

134、d as finance director in 1997.Qualified as a chartered accountant with KPMG in 1988,becoming a fellow of the Institute of Chartered Accountants in 1998.Previously worked for Fuller,Smith&Turner P.L.C.(1990-97).Aged 52.ROGER LAMBERT,M.A.NON-EXECUTIVE AND SENIOR INDEPENDENT DIRECTORAppointed to the bo

135、ard in 2008 and as senior independent director in 2011.Member of the companys audit and remuneration committees.Chairman of Corporate Broking,Canaccord Genuity.Previously worked for 26 years in corporate finance at JPMorgan Cazenove where he was a senior managing director with responsibilities for c

136、orporate client coverage of the consumer sector.Has a wealth of relevant expertise in brewing,drinks and hospitality,having acted for over 25 companies in the sector.Aged 55.RUPERT CLEVELYNON-EXECUTIVEJoined the company and the board in 2010.Retired from his executive position and became non-executi

137、ve in 2013.As an executive director,had overall responsibility for the management and development strategy of Geronimo Inns which he co-founded.Previous to this,worked at Veuve Clicquot Champagne where he held the position of worldwide marketing director and managing director UK(1990-2000).Aged 56.D

138、irectors reportFor the 52 weeks ended 31 March 2014Welcome to our board of directors.All served throughout the period;no other person was a director during the period.YOUNG&CO.S BREWERY,P.L.C.ANNUAL REPORT 2014 17 Strategic report Directors report Financial statements Shareholder informationTHE BOAR

139、DThe business and management of the group is the collective responsibility of the board.At each board meeting the groups financial and trading performance is reviewed.The board has a formal written schedule of matters reserved for its review and approval;this includes matters such as strategy,long t

140、erm objectives and major financial and key operational issues.The board meets every two months with additional meetings arranged as required;it met six times during the period.Formal agendas and reports are provided to the board on a timely basis along with other information to enable it to discharg

141、e its duties.All directors have access to independent professional advice at the companys expense and to the advice and services of the Company Secretary.There is a clear division of responsibility between the Chairman(who is responsible for the effective running of the board)and the Chief Executive

142、(who has overall responsibility for the running of the business).CORPORATE GOVERNANCEThe board is committed to good corporate governance in the management and operation of the groups business.LENGTH OF APPOINTMENTSEach of the executive directors has been appointed for an indefinite period.The period

143、 of notice required to be given to terminate his appointment is as follows:Name Minimum period of Minimum period of notice from Youngs notice from the executiveStephen Goodyear one year six monthsTorquil Sligo-Young one year six monthsPeter Whitehead one year six monthsPatrick Dardis one year one ye

144、arEdward Turner one year one yearNo compensation is payable by Youngs for early termination.Each of the non-executive directors is part way through a three year term:Nicholas Bryans expires on 11 July 2014,both Roger Lamberts and David Pages on 31 July 2014 and Rupert Clevelys on 1 April 2016.RE-APP

145、OINTMENTUnder the companys articles of association the following automatically retire from office at every AGM but may offer themselves for re-appointment:any director who held office at the time of the two preceding AGMs but did not retire at either of them this applies to Rupert Clevely at this ye

146、ars AGM;and any director appointed by the board since the last AGM this does not apply to any director at this years AGM.Rupert Clevely is seeking re-appointment and his brief biographical details are on page 16.BOARD NOMINATIONS AND APPOINTMENTSIn practice the Chairman and the Chief Executive lead

147、on the board nomination and appointment process.They consider the balance of skills,knowledge and experience on the board and make appropriate recommendations for consideration by the board.This formal but unwritten process has been used effectively for a number of years and has led the board to rem

148、ain of the view that it should continue to operate in this way rather than through a more formal nomination committee.REMUNERATIONDetails of each directors remuneration appear in note 8(b)on page 35.No director is involved in deciding his own remuneration.The remuneration of the executive directors

149、is determined by the companys remuneration committee;the remuneration of the non-executive directors is determined by the executive committee.None of the executive directors receives remuneration as a non-executive director elsewhere.qUALIFYING INDEMNITY PROVISIONS The companys articles of associati

150、on contains an indemnity provision in favour of the directors;this provision,which is a qualifying third party indemnity provision,was in force throughout the period and is in force at the date of this report.Additional indemnity provisions in favour of Rupert Clevely are described in note 28 on pag

151、e 52;these provisions,which are qualifying third party indemnity provisions,were in force throughout the period and are in force at the date of this report.18 YOUNG&CO.S BREWERY,P.L.C.ANNUAL REPORT 201418Directors report(Continued)For the 52 weeks ended 31 March 2014 Non-voting As at A shares shares

152、Nicholas Bryan Beneficial and family 31 March 2014 8,505 1 April 2013 8,505 Stephen Goodyear(i),(ii)Beneficial and family 31 March 2014 147,566 1 April 2013 119,836 Torquil Sligo-Young(i),(ii)Beneficial and family 31 March 2014 246,255 7,000 1 April 2013 240,971 10,000 Trustee 31 March 2014 3,689,18

153、8 549,591 1 April 2013 3,317,972 111,436Peter Whitehead(i),(ii)Beneficial and family 31 March 2014 68,547 1 April 2013 50,000 Patrick Dardis(i),(ii)Beneficial and family 31 March 2014 14,670 1 April 2013 7,869 Edward Turner(i)Beneficial and family 31 March 2014 1 April 2013 Roger Lambert Beneficial

154、and family 31 March 2014 5,250 5,000 1 April 2013 5,250 5,000David Page Beneficial and family 31 March 2014 3,278 1 April 2013 3,278 Rupert Clevely(i)Beneficial and family 31 March 2014 20,081 1 April 2013 17,000 Also interested in:(i)680,856(2013:719,956)A shares held in trust by RBT II Trustees Li

155、mited see note 28 on page 53(ii)477,769(2013:502,769)A shares held in trust by Youngs Pension Trustees Limited see note 28 on page 53INTERNAL CONTROLThe board has overall responsibility for the internal control system and for reviewing its effectiveness.The executive directors implement and maintain

156、 the risk management and internal control systems.The audit committee assists the board in fulfilling its oversight responsibilities by monitoring the systems integrity.The system of control has been designed to manage risk;it cannot eliminate it and therefore provides reasonable,not absolute,assura

157、nce against material misstatement or loss.DIRECTORS HOLDINGS AND INTERESTSThe holdings and interests of the directors who held office at the period end(and their immediate families)in the share capital of the company are shown in the table below;these are in addition to the interests shown in notes

158、8(d)and 8(e)on pages 36 and 37.COMMITTEESThe board has four standing committees:executive,audit,remuneration and disclosure.REMUNERATION COMMITTEEThis comprises David Page,who chairs it,Nicholas Bryan and Roger Lambert.Its primary function is to determine,on behalf of the board,the remuneration pack

159、ages of the executive directors.The committees terms of reference,which set out its other responsibilities,can be found in the investor relations section of www.youngs.co.uk.AUDIT COMMITTEEThis comprises Nicholas Bryan,who chairs it,Roger Lambert and David Page.It assists the board in fulfilling its

160、 oversight responsibilities;its primary functions are to monitor the integrity of the companys financial statements and internal control systems(including risk management),to oversee the companys relationship with its external auditor and to review the effectiveness of the audit process.The committe

161、es terms of reference,which set out in full its responsibilities,can be found in the investor relations section of www.youngs.co.uk.DISCLOSURE COMMITTEEThis comprises the executive directors and is chaired by Peter Whitehead.It assists the company in making timely and accurate disclosure of informat

162、ion required to be disclosed in order to meet legal and regulatory obligations.The committees terms of reference,which set out its other responsibilities,can be found in the investor relations section of www.youngs.co.uk.EXECUTIVE COMMITTEEThis comprises the executive directors and is chaired by Ste

163、phen Goodyear.It usually meets on a weekly basis and is responsible for the daily running of the group and the execution of approved policies and the business plan.Members of the companys senior management are invited to attend as appropriate.YOUNG&CO.S BREWERY,P.L.C.ANNUAL REPORT 2014 19 Strategic

164、report Directors report Financial statements Shareholder informationOTHER DISCLOSURESIn this report reference to the“company”or to“Youngs”is to Young&Co.s Brewery,P.L.C.,and reference to the“group”is to the group of companies of which Youngs is the parent company.AIMThe companys shares are traded on

165、 AIM.There are no other exchanges or trading platforms on which the company has applied or agreed to have its shares admitted or traded.PROFIT AND DIVIDENDSThe profit for the period attributable to shareholders was 22.1 million.The directors recommend a final dividend for the period of 8.07 pence pe

166、r share.Subject to approval at the AGM,this is expected to be paid on 10 July 2014 to shareholders on the register at the close of business on 6 June 2014.When added to the interim dividend of 7.45 pence per share,this will produce a total dividend for the period of 15.52 pence per share.ANNUAL GENE

167、RAL MEETINGNotice convening the AGM and an explanation of the resolutions being proposed are set out on pages 57 to 60.IMPORTANT EVENTS SINCE THE END OF THE PERIOD AND LIKELY FUTURE DEVELOPMENTS In accordance with section 414C(11)of the Companies Act 2006,the directors have chosen to include in the

168、strategic report(on pages 3 to 15)particulars of important events affecting the group which have occurred since the end of the period and an indication of likely future developments in the groups business.FINANCIAL INSTRUMENTS AND RELATED MATTERSIncluded in note 22,starting on page 45,are the groups

169、 financial risk management objectives and policies and an indication of the groups exposure to certain risks.RELATIONS wITH SHAREHOLDERS AND INVESTORSCopies of the annual report and the interim report are sent to all shareholders and copies are available at www.youngs.co.uk.The companys website also

170、 provides other information for shareholders and interested parties.Written or e-mailed enquiries are handled by the Company Secretary.Shareholders are given the opportunity to ask questions and raise issues at the AGM;this can be done formally during the meeting or informally with the directors aft

171、er it.The Chief Executive and the Finance Director meet with institutional investors and analysts after the announcement of the interim and year end results.Additional meetings with institutional investors and/or analysts are arranged from time to time.EMPLOYEESConsiderable importance is placed on c

172、ommunications with employees and so,within the limitation of commercial confidentiality and security,Youngs provided them with information concerning trading,development and other appropriate matters.It did this at many levels throughout the business on both a formal and informal level,including thr

173、ough management presentations.It also consulted regularly with employees and their representatives thereby enabling the board to have regard to their views when making decisions likely to affect their interests;in connection with this Youngs continued to operate an information and consultation commi

174、ttee with its members being drawn from departments based at its head office in Wandsworth.The companys integrated appraisal and development process,designed to improve communications and company performance,remained in place,and the company continued to operate a bonus scheme for eligible employees.

175、To encourage further involvement in the groups performance the company invited all employees of the group who had been continuously employed from 2 April 2011 to join the groups savings-related share option scheme for 2013.After saving for a three year period(through deductions from net salary),sche

176、me members can then buy A shares in the company if they choose to do so at 662 pence per share,being a discount of about 20%to the market price at the time the invitations were issued.Youngs maintained its policy of giving full and fair consideration to all applications for employment,including thos

177、e made by disabled people,taking account of the applicants particular aptitude and ability;of seeking to continue to employ anyone who becomes disabled while employed by the company and arranging training in a role appropriate to the persons changed circumstances;and of giving all employees,includin

178、g disabled employees,equal opportunities for training,career development and promotion.PUBLIC HEALTH RESPONSIBILITY DEALThe company continued to support the Governments public health responsibility deal,an initiative established to tap into the potential for businesses and other influential organisa

179、tions to make a significant contribution to improving public health by helping to create that environment.As a result the company agreed to ensure effective action was taken in its managed pubs to reduce and prevent under-age sales of alcohol(primarily through the rigorous application of Challenge 2

180、1).The 20 YOUNG&CO.S BREWERY,P.L.C.ANNUAL REPORT 201420Directors report(Continued)For the 52 weeks ended 31 March 2014 Strategic report Directors report Financial statements Shareholder informationcompany has maintained its financial and in-kind support for Drinkaware and the“Why let the Good times

181、go bad?”campaigns and agreed to ensure alcohol advertising was undertaken by the companys managed pubs in accordance with industry codes on advertising and was not placed on any outdoor poster site within 100 metres of a school.Recognising the impact chronic conditions could have,guides(developed th

182、rough the public health responsibility deals health at work network)remained embedded within the companys HR procedures to ensure that those with chronic conditions at work were managed in the best way possible with reasonable flexibilities and workplace adjustments.NOTIFICATIONS OF MAJOR HOLDINGS O

183、F VOTING RIGHTS As at 31 March 2014 the company had been notified of the following holdings of 3%or more of the voting rights in the company:Thomas Young 14.31%James Young 13.81%Torquil Sligo-Young 13.24%BlackRock Investment Management(UK)Limited 8.13%Lindsell Train Limited 5.28%El Oro and Explorati

184、on Company plc 3.10%No changes in those holdings,and no other holdings of 3%or more of the voting rights in the company,had been notified to the company between 1 April 2014 and 20 May 2014,both dates inclusive.STATEMENT OF CERTAIN RESPONSIBILITIES IN RELATION TO THE FINANCIAL STATEMENTS AND OTHERWI

185、SEFor each financial period the directors are required to prepare an annual report,a strategic report and financial statements.The latter must be prepared in accordance with International Financial Reporting Standards(“IFRS”)and applicable law and must present fairly the financial position of the gr

186、oup and the financial performance and cash flows of the group for the relevant period.The directors have also elected to prepare the companys financial statements under IFRS.In preparing the statements the directors must select suitable accounting policies and then apply them consistently,state that

187、 the group has complied with IFRS(subject to any material departures disclosed and explained in the financial statements)and present information,including accounting policies,in a manner that provides relevant,reliable and comparable information.The directors are responsible for keeping accounting r

188、ecords which disclose with reasonable accuracy,at any time,the financial position of the group and the company at that time and enable them to ensure that the financial statements comply with the Companies Act 2006.They are also responsible for safeguarding the assets of the group and the company an

189、d hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.DISCLOSURE OF INFORMATION TO THE AUDITOREach of the persons who was a director at the time when this report was approved has confirmed that,so far as he was aware,there was no information needed by

190、 the companys auditor in connection with preparing its report of which the companys auditor was unaware.Each of those individuals has also confirmed that he took all the steps that he ought to have taken as a director to make himself aware of any such information and to establish that the companys a

191、uditor was aware of it.This paragraph is to be interpreted in accordance with section 418 of the Companies Act 2006.PREPARATION AND DISCLAIMERThis annual report,together with the strategic report(on pages 3 to 15)and the financial statements for the period ended 31 March 2014,have been drawn up and

192、presented for the purpose of complying with English law.Any liability arising out of or in connection with them will also be determined in accordance with English law.By order of the boardAnthony SchroederCompany Secretary21 May 2014YOUNG&CO.S BREWERY,P.L.C.ANNUAL REPORT 2014 21Independent auditors

193、reportFor the 52 weeks ended 31 March 2014 Strategic report Directors report Financial statements Shareholder informationIndependent auditors report to the members of Young&Co.s Brewery,P.L.C.We have audited the financial statements of Young&Co.s Brewery,P.L.C.for the period ended 31 March 2014 whic

194、h comprise the Group Income Statement,the Group and Parent Company Statements of Comprehensive Income,the Group and Parent Company Balance Sheets,the Group and Parent Company Statements of Cash Flow,the Group and Parent Company Statement of Changes in Equity and the related notes 1 to 31.The financi

195、al reporting framework that has been applied in their preparation is applicable law and International Financial Reporting Standards(IFRSs)as adopted by the European Union and,as regards the parent company financial statements,as applied in accordance with the provisions of the Companies Act 2006.Thi

196、s report is made solely to the companys members,as a body,in accordance with Chapter 3 of Part 16 of the Companies Act 2006.Our audit work has been undertaken so that we might state to the companys members those matters we are required to state to them in an auditors report and for no other purpose.

197、To the fullest extent permitted by law,we do not accept or assume responsibility to anyone other than the company and the companys members as a body,for our audit work,for this report,or for the opinions we have formed.Respective responsibilities of directors and auditorAs explained more fully in th

198、e Directors Responsibilities Statement set out on page 20,the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view.Our responsibility is to audit and express an opinion on the financial statements in accordance with app

199、licable law and International Standards on Auditing(UK and Ireland).Those standards require us to comply with the Auditing Practices Boards Ethical Standards for Auditors.Scope of the audit of the financial statementsAn audit involves obtaining evidence about the amounts and disclosures in the finan

200、cial statements sufficient to give reasonable assurance that the financial statements are free from material misstatement,whether caused by fraud or error.This includes an assessment of:whether the accounting policies are appropriate to the groups and the parent companys circumstances and have been

201、consistently applied and adequately disclosed;the reasonableness of significant accounting estimates made by the directors;and the overall presentation of the financial statements.In addition,we read all the financial and non-financial information in the Annual Report to identify material inconsiste

202、ncies with the audited financial statements and to identify any information that is apparently materially incorrect based on,or materially inconsistent with,the knowledge acquired by us in the course of performing the audit.If we become aware of any apparent material misstatements or inconsistencies

203、 we consider the implications for our report.Opinion on financial statementsIn our opinion:the financial statements give a true and fair view of the state of the groups and of the parent companys affairs as at 31 March 2014 and of the groups profit for the period then ended;the group financial state

204、ments have been properly prepared in accordance with IFRSs as adopted by the European Union;the parent company financial statements have been properly prepared in accordance with IFRSs as adopted by the European Union and as applied in accordance with the provisions of the Companies Act 2006;and the

205、 financial statements have been prepared in accordance with the requirements of the Companies Act 2006.Opinion on other matter prescribed by the Companies Act 2006In our opinion the information given in the Strategic Report and the Directors Report for the financial year for which the financial stat

206、ements are prepared is consistent with the financial statements.Matters on which we are required to report by exceptionWe have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if,in our opinion:adequate accounting records have not been k

207、ept by the parent company,or returns adequate for our audit have not been received from branches not visited by us;or the parent company financial statements are not in agreement with the accounting records and returns;or certain disclosures of directors remuneration specified by law are not made;or

208、 we have not received all the information and explanations we require for our audit.Andy Glover(Senior statutory auditor)for and on behalf of Ernst&Young LLP,Statutory AuditorLondon21 May 2014Notes:1.The maintenance and integrity of the Young&Co.s Brewery,P.L.C.website is the responsibility of the d

209、irectors;the work carried out by the auditor does not involve consideration of these matters and,accordingly,the auditor accepts no responsibility for any changes that may have occurred to the financial statements since they were initially presented on the website.2.Legislation in the United Kingdom

210、 governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.22 YOUNG&CO.S BREWERY,P.L.C.ANNUAL REPORT 201422Group income statementFor the 52 weeks ended 31 March 2014 Restated 2014 2013 Notes 000 000Revenue 6 210,768 193,677Operating costs

211、before exceptional items 7(177,513)(164,742)Operating profit before exceptional items 33,255 28,935Operating exceptional items 9(611)(1,809)Operating profit 32,644 27,126Finance costs 11(5,941)(5,894)Finance revenue 11 250 543Other finance charge 24(393)(360)Profit before tax 26,560 21,415Taxation 1

212、2(4,506)(5,066)Profit for the period 22,054 16,349Attributable toShareholders of the parent 22,054 16,292Non controlling interest 57Profit for the period 22,054 16,349 Pence PenceEarnings per 12.5p ordinary shareBasic 15 45.68 33.78Diluted 15 45.63 33.76The notes on pages 28 to 55 form part of these

213、 financial statements.The independent auditors report is set out on page 21.All of the results above are from continuing operations.The comparative figures for 2013 have been restated as a result of the adoption of the revisions to IAS 19 Employee benefits(see note 2).Strategic report Directors repo

214、rt Financial statements Shareholder informationYOUNG&CO.S BREWERY,P.L.C.ANNUAL REPORT 2014 23 Group Company Restated Restated 2014 2013 2014 2013 Notes 000 000 000 000Profit for the period 22,054 16,349 17,297 14,090Other comprehensive income Items that will not be reclassified subsequently to profi

215、t or loss:Remeasurement of retirement benefit schemes 24 3,001(2,198)3,001(2,198)Tax on remeasurement of retirement benefit schemes (1,377)268(1,377)268Items that will be reclassified subsequently to profit or loss:Unrealised gain on revaluation of property 17 21,968 8,547 18,300 5,450Fair value mov

216、ement of interest rate swaps 22 5,481(1,647)5,481(1,647)Tax on components of other comprehensive income 706 2,440 1,133 2,668 29,779 7,410 26,538 4,541 Total comprehensive income 51,833 23,759 43,835 18,631Attributable toShareholders of the parent 51,833 23,702 43,835 18,631Non controlling interest

217、57 Total comprehensive income 51,833 23,759 43,835 18,631Statements of comprehensive incomeFor the 52 weeks ended 31 March 2014The notes on pages 28 to 55 form part of these financial statements.The independent auditors report is set out on page 21.All of the results above are from continuing operat

218、ions.The comparative figures for 2013 have been restated as a result of the adoption of the revisions to IAS 19 Employee benefits(see note 2).Strategic report Directors report Financial statements Shareholder information24 YOUNG&CO.S BREWERY,P.L.C.ANNUAL REPORT 201424 Group Company 2014 2013 2014 20

219、13 Notes 000 000 000 000Non current assetsGoodwill 16 20,426 20,426 Property and equipment 17 559,230 515,899 501,717 462,358Investment in subsidiaries 18 24,254 24,254Deferred tax assets 23 4,735 7,111 4,771 7,135 584,391 543,436 530,742 493,747Current assetsInventories 19 2,554 2,455 1,958 1,875Ot

220、her financial asset 28 4,749 4,749Trade and other receivables 20 5,943 4,261 26,730 29,729Cash 2,435 6,123 1,320 4,938 10,932 17,588 30,008 41,291Total assets 595,323 561,024 560,750 535,038Current liabilitiesBorrowings 22(6)(10,006)(6)(10,006)Trade and other payables 21(29,310)(24,156)(27,900)(23,1

221、08)Income tax payable (3,165)(2,545)(1,951)(2,101)(32,481)(36,707)(29,857)(35,215)Non current liabilitiesBorrowings 22(114,422)(108,680)(114,422)(108,680)Derivative financial instruments 22(8,389)(13,870)(8,389)(13,870)Deferred tax liabilities 23(54,374)(58,381)(48,386)(51,850)Retirement benefit sch

222、emes 24(5,995)(8,841)(5,995)(8,841)(183,180)(189,772)(177,192)(183,241)Total liabilities (215,661)(226,479)(207,049)(218,456)Net assets 379,662 334,545 353,701 316,582Capital and reservesShare capital 25 6,036 6,028 6,036 6,028Share premium 1,675 1,274 1,675 1,274Capital redemption reserve 1,808 1,8

223、08 1,808 1,808Hedging reserve (6,711)(10,680)(6,711)(10,680)Revaluation reserve 193,046 168,860 186,936 165,991Retained earnings 183,808 167,255 163,957 152,161Total equity 379,662 334,545 353,701 316,582Approved by the board of directors and signed on its behalf by:Nicholas Bryan ChairmanPeter Whit

224、ehead Finance Director21 May 2014The notes on pages 28 to 55 form part of these financial statements.The independent auditors report is set out on page 21.Balance sheetsAt 31 March 2014 Strategic report Directors report Financial statements Shareholder informationYOUNG&CO.S BREWERY,P.L.C.ANNUAL REPO

225、RT 2014 25The notes on pages 28 to 55 form part of these financial statements.The independent auditors report is set out on page 21.Group Company Restated Restated 2014 2013 2014 2013 Notes 000 000 000 000Operating activities Net cash generated from operations 27 47,316 35,118 43,102 30,794 Interest

226、 received 6 971 1,264 Tax paid (6,150)(5,393)(5,678)(4,420)Net cash flow from operating activities 41,166 29,731 38,395 27,638investing activities Sale of property and equipment 4,161 4,155Sale of discontinued operations 28 5,000 5,000 5,000 5,000Purchases of property and equipment 17(22,829)(16,793

227、)(19,988)(14,542)Business combinations,net of cash acquired 13(10,785)(3,700)(10,785)(3,700)Net cash used in investing activities (28,614)(11,332)(25,773)(9,087)Financing activities Issued share capital 25 8 8 Interest paid (5,481)(5,808)(5,481)(5,808)Equity dividends paid 14(7,267)(6,882)(7,267)(6,

228、882)Decrease in borrowings (3,500)(3,500)(3,500)(3,500)Net cash flow used in financing activities (16,240)(16,190)(16,240)(16,190)(Decrease)/increase in cash (3,688)2,209(3,618)2,361Cash at the beginning of the period 6,123 3,914 4,938 2,577Cash at the end of the period 2,435 6,123 1,320 4,938Statem

229、ents of cash flowFor the 52 weeks ended 31 March 2014 Strategic report Directors report Financial statements Shareholder information26 YOUNG&CO.S BREWERY,P.L.C.ANNUAL REPORT 201426 Total equity Capital attributable Non Share redemption Hedging Revaluation Retained to equity controlling Total capital

230、(1)reserve reserve reserve earnings shareholders interest equity Notes 000 000 000 000 000 000 000 000At 2 April 2012 7,302 1,808(9,290)158,731 159,134 317,685(42)317,643Total comprehensive income Profit for the period(2)16,292 16,292 57 16,349 Other comprehensive income Unrealised gain on revaluati

231、on of property 17 8,547 8,547 8,547 Remeasurement of retirement benefit schemes(2)24 (2,198)(2,198)(2,198)Fair value movement of interest rate swaps 22 (1,647)(1,647)(1,647)Tax on above components of other comprehensive income(2)12 257 2,183 268 2,708 2,708 (1,390)10,730(1,930)7,410 7,410Total compr

232、ehensive income (1,390)10,730 14,362 23,702 57 23,759Transactions with owners recorded directly in equity Dividends paid on equity shares 14 (6,882)(6,882)(6,882)Revaluation reserve realised on disposal of properties (601)601 Disposal of subsidiary (15)(15)Share based payments 26 33 33 33Tax on shar

233、e based payments 7 7 7 (601)(6,241)(6,842)(15)(6,857)At 1 April 2013 7,302 1,808(10,680)168,860 167,255 334,545 334,545Total comprehensive income Profit for the period 22,054 22,054 22,054Other comprehensive income Unrealised gain on revaluation of property 17 21,968 21,968 21,968 Remeasurement of r

234、etirement benefit schemes 24 3,001 3,001 3,001Fair value movement of interest rate swaps 22 5,481 5,481 5,481 Tax on above components of other comprehensive income 12 (1,512)2,218(1,377)(671)(671)3,969 24,186 1,624 29,779 29,779Total comprehensive income 3,969 24,186 23,678 51,833 51,833Transactions

235、 with owners recorded directly in equity Share capital issued 25 409 409 409Dividends paid on equity shares 14 (7,267)(7,267)(7,267)Share based payments 26 104 104 104Tax on share based payments 38 38 38 409 (7,125)(6,716)(6,716)At 31 March 2014 7,711 1,808(6,711)193,046 183,808 379,662 379,662(1)To

236、tal share capital comprises the share capital issued and fully paid of 6,036,000(2013:6,028,000)and the share premium account of 1,675,000(2013:1,274,000).(2)The comparative figures for 2013 have been restated as a result of the adoption of the revisions to IAS 19:Employee Benefits(Revised)(see note

237、 2).The notes on pages 28 to 55 form part of these financial statements.The independent auditors report is set out on page 21.Group statement of changes in equityAt 31 March 2014 Strategic report Directors report Financial statements Shareholder informationYOUNG&CO.S BREWERY,P.L.C.ANNUAL REPORT 2014

238、 27 Capital Share redemption Hedging Revaluation Retained Total capital(1)reserve reserve reserve earnings equity Notes 000 000 000 000 000 000At 2 April 2012 7,302 1,808(9,290)158,731 146,242 304,793Total comprehensive income Profit for the period(2)14,090 14,090Other comprehensive income Unrealise

239、d gain on revaluation of property 17 5,450 5,450Remeasurement of retirement benefit schemes(2)24 (2,198)(2,198)Fair value movement of interest rate swaps 22 (1,647)(1,647)Tax on above components of other comprehensive income(2)12 257 2,411 268 2,936 (1,390)7,861(1,930)4,541Total comprehensive income

240、 (1,390)7,861 12,160 18,631Transactions with owners recorded directly in equity Dividends paid on equity shares 14 (6,882)(6,882)Revaluation reserve realised on disposal of properties (601)601 Share based payments 26 33 33Tax on share based payments 7 7 (601)(6,241)(6,842)At 1 April 2013 7,302 1,808

241、(10,680)165,991 152,161 316,582Total comprehensive income Profit for the period 17,297 17,297Other comprehensive income Unrealised gain on revaluation of property 17 18,300 18,300Remeasurement of retirement benefit schemes 24 3,001 3,001Fair value movement of interest rate swaps 22 5,481 5,481Tax on

242、 above components of other comprehensive income (1,512)2,645(1,377)(244)3,969 20,945 1,624 26,538Total comprehensive income 3,969 20,945 18,921 43,835Transactions with owners recorded directly in equity Share capital issued 25 409 409Dividends paid on equity shares 14 (7,267)(7,267)Share based payme

243、nts 26 104 104Tax on share based payments 38 38 409 (7,125)(6,716)At 31 March 2014 7,711 1,808(6,711)186,936 163,957 353,701(1)Total share capital comprises the share capital issued and fully paid of 6,036,000(2013:6,028,000)and the share premium account of 1,675,000(2013:1,274,000).(2)The comparati

244、ve figures for 2013 have been restated as a result of the adoption of the revisions to IAS 19:Employee Benefits(Revised)(see note 2).The notes on pages 28 to 55 form part of these financial statements.The independent auditors report is set out on page 21.Parent company statement of changes in equity

245、At 31 March 2014 Strategic report Directors report Financial statements Shareholder information28 YOUNG&CO.S BREWERY,P.L.C.ANNUAL REPORT 2014281.General informationThe group and parent company financial statements of Young&Co.s Brewery,P.L.C.for the period ended 31 March 2014 were authorised for iss

246、ue by the board of directors on 21 May 2014.Young&Co.s Brewery,P.L.C.is a public limited company incorporated and domiciled in England and Wales.The companys shares are listed on the Alternative Investment Market of the London Stock Exchange.The nature of the groups operations and its principal acti

247、vities are set out in note 5 and in the strategic report on pages 3 to 15.The current period and prior period relate to the 52 weeks ended 31 March 2014 and 1 April 2013 respectively.The financial statements are presented in pounds sterling and all values are rounded to the nearest thousand pounds(0

248、00)except where otherwise indicated.2.Basis of preparationThe consolidated financial statements of the group have been prepared in accordance with International Financial Reporting Standards(IFRS)as adopted for use in the European Union.IFRS includes the application of International Financial Report

249、ing Standards including International Accounting Standards(IAS)and related Interpretations of the International Financial Reporting Interpretations Committee(IFRIC)and Interpretations of the Standing Interpretations Committee(SIC).During the period,new IFRS and amendments to existing IFRS were issue

250、d by the International Accounting Standards Board(IASB).The impact and,if applicable,the adoption of these standards is described below in“New Accounting Standards,Amendments and Interpretations”.No separate income statement is presented for the company,as permitted by section 408(3)of the Companies

251、 Act 2006.The companys profit after tax for the period was 17,297,000(2013:14,090,000 revised).New Accounting Standards,Amendments and interpretationsThe group has adopted the following new accounting standards during the period.IAS 19:Employee Benefits(Revised):the groups income statement and state

252、ment of comprehensive income for the period ended 1 April 2013 has been restated following the adoption of IAS 19:Employee Benefits(Revised).Although the restatement had no effect on the groups balance sheet and statement of cash flow,certain notes have been restated to reflect the reclassification

253、between other finance charge and remeasurement of retirement benefits.The revised standard was effective for the full year ended 31 March 2014 and has been applied retrospectively.The key impact on the group was to remove the separate assumptions for expected return on plan assets and discounting of

254、 scheme liabilities and to replace them with one single discount rate for the net deficit.For the full year comparatives at 1 April 2013,within the income statement,the other finance income of 544,000 has been restated to a charge of 360,000 and the tax charge has been reduced from 5,274,000 to 5,06

255、6,000.Within other comprehensive income,the remeasurement of retirement benefits has been reduced by 904,000 and the deferred tax credit has been reduced by 208,000.IFRS 13:Fair value measurement:was effective for the full year ended 31 March 2014 and is to be applied prospectively.The new standard

256、establishes a single source of guidance under IFRS for all fair value measurements.The standard does not change when a company is required to use fair value,but rather provides guidance on how to measure fair value under IFRS when fair value is required or permitted.The adoption of the standard has

257、no impact on the recognised assets,liabilities and comprehensive income of the group but has increased the disclosure in notes 17 and 22 in the current period.IAS 1:Presentation of items of other comprehensive income amendments to IAS 1:Presentation of Financial Statements,the group has modified the

258、 presentation of items of other comprehensive income to present separately items that would be reclassified to profit or loss in the future from those that would never be.The adoption of the amendment to IAS 1 has no impact on the recognised assets,liabilities and comprehensive income of the group.I

259、FRS 1:Government Loans(Amendment):the amendment allows first time adopters relief from a retrospective measurement of government loans with a below market rate of interest.The amendment was effective for the full year ending 31 March 2014 but the group does not have any government loans or grants so

260、 has had no impact on the group.IFRS 7:Offsetting Financial Assets and Financial Liabilities(Amendment):effective 1 January 2013 and requires an entity to disclose information about rights of set-off and related arrangements(e.g.collateral agreements).The adoption of the standard has had no impact o

261、n the group.IFRIC 20:Stripping Costs in the Production Phase of a Surface Mine:was effective for the full year ended 31 March 2014 and applies to surface mining activities.The group does not partake in these activities and thus the adoption of this interpretation has had no impact on the group.The d

262、irectors also intend to adopt the Standards,Amendments and Interpretations listed below when they become effective.The directors do not expect that adoption in future periods will have a material impact.Effective dateIFRS 10,11,12 Investments Entities(Amendments)1 January 2014(IAS 27,28)IAS 32 Offse

263、tting Financial Assets and Financial Liabilities(Amendment)1 January 2014IAS 36 Recoverable Amount Disclosures to Non-Financial Assets(Amendment)1 January 2014IAS 39 Novation of Derivatives and Continuation of Hedge Accounting(Amendment)1 January 2014IFRIC 21 Levies 1 January 2014IAS 19 Defined Bene

264、fit Plans:Employee Contributions(Amendments)1 July 2014IFRS 14 Regulatory Deferral Accounts 1 January 2016IFRS 9 Financial Instruments:Classification and Measurement 1 January 2018Notes to the financial statementsFor the 52 weeks ended 31 March 2014YOUNG&CO.S BREWERY,P.L.C.ANNUAL REPORT 2014 293.Sum

265、mary of significant accounting policiesThe significant accounting policies adopted are set out below and,except as noted above,have been applied consistently in presenting the group and parent company financial information.(a)Basis of consolidationThe groups financial statements consolidate the fina

266、ncial statements of Young&Co.s Brewery,P.L.C.with the entities it controls its subsidiaries and a special purpose entity,drawn up to the period end.Control exists where the company has the power to govern the financial and operating policies of the investee entity so as to obtain benefits from its a

267、ctivities.The special purpose entity is an Employee Share Ownership Plan(ESOP)Trust.The results of subsidiaries acquired or disposed of during the period are included in the group income statement from the effective date of acquisition or up to the effective date of disposal,as appropriate.The finan

268、cial statements of the subsidiaries and special purpose entity are consolidated on a comparable period basis,using consistent accounting policies.All inter company balances and transactions,including unrealised profits arising on them,are eliminated.(b)The parent companys investments in subsidiaries

269、In its separate financial statements,the parent company recognises its investments in its subsidiaries on the basis of the direct equity interest method.Income is recognised from these investments in relation to distributions received.(c)Revenue recognitionRevenue is recognised to the extent that it

270、 is probable that the economic benefits will flow to the group and the revenue can be reliably measured.Revenue is measured at the fair value of the consideration received,excluding discounts,rebates and VAT.The following criteria must also be met before revenue is recognised:Sale of goods Revenue f

271、rom sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer.Rental income Rental income arising from operating leases on properties is accounted for on a straight line basis over the lease term.Interest income Revenue is recognised as int

272、erest accrues(using the effective interest method).DividendsRevenue is recognised when the companys right to receive payment is established.(d)Exceptional itemsExceptional items,as disclosed on the face of the income statement,are items which due to their material and non recurring nature have been

273、classified separately in order to draw them to the attention of the reader of the financial statements.They are included in the adjustments that,in managements judgement,are required in order to show more accurately the business performance of the group in a consistent manner and to reflect how the

274、business is managed and measured on a day to day basis.(e)Business combinations and goodwillBusiness combinations are accounted for using the acquisition method.The cost of an acquisition is measured as the aggregate of the consideration transferred and the amount of any non controlling interest in

275、the acquiree.The consideration transferred is measured at acquisition date fair value.The non controlling interest is measured as the proportionate share of the acquirees identifiable net assets.Acquisition costs incurred are expensed and included in operating exceptional items.Goodwill arising on a

276、cquisition represents the excess of the cost of acquisition over the fair value of the net identifiable assets acquired and liabilities assumed at the date of acquisition.On disposal of a subsidiary,the attributable amount of goodwill is included in the determination of the profit or loss on disposa

277、l.(f)Property and equipmentProperties,including land and buildings,and fixtures,fittings and equipment are held at fair value and are revalued by qualified valuers on a sufficiently regular basis using open market values so that the carrying value of an asset does not differ significantly from its f

278、air value at the balance sheet date.The valuation is assessed on the basis of the highest and best use on which that asset could be realised,predominantly as a public house.When the necessary requirements have been met in respect of assets identified for disposal and revalued immediately prior to tr

279、ansfer to non current assets held for sale,the highest and best use for a market participant may reflect an alternative use for the asset.Surpluses which arise from the revaluation exercise are included within other comprehensive income(in the revaluation reserve)unless they are reversing a revaluat

280、ion adjustment which has been recognised in the income statement previously.Where the revaluation exercise gives rise to a deficit,this is reflected directly in other comprehensive income(in the revaluation reserve)to the extent that a surplus exists against the same asset.Any further decrease in va

281、lue is recognised in the income statement as an exceptional expense.The carrying amount of an asset,less any residual value,is depreciated on a straight line basis over the assets useful life or lease term if shorter.The residual value,useful life and depreciation method applied to each asset are re

282、viewed annually.Useful lives:Freehold and long leasehold buildings 50 years Short leasehold buildings Shorter of the estimated useful life and the lease term Fixtures,fittings and equipment 3-10 yearsAn assets carrying amount is written down immediately to its recoverable amount if the assets carryi

283、ng amount is greater than its estimated recoverable amount(note 3(g).The gain arising on the disposal or retirement of an asset is determined as the difference between the sales proceeds and the carrying amount of the asset,and is recognised in the income statement.Pub fixtures,fittings and equipmen

284、t are treated as disposals in the period following completion of their write down.Strategic report Directors report Financial statements Shareholder information30 YOUNG&CO.S BREWERY,P.L.C.ANNUAL REPORT 2014303.Summary of significant accounting policies(continued)(g)Impairment of assetsThe carrying v

285、alues of investments,property and equipment are reviewed for impairment if events or changes in circumstances indicate the carrying value may not be recoverable.Goodwill is mandatorily assessed for impairment on an annual basis or more frequently if there are indications that the carrying value may

286、be impaired.Impairment is assessed on the basis of either each individual asset,each individual cash generating unit(an individual pub),or,in the case of goodwill,the group of cash generating units associated with it.For the purpose of impairment testing,goodwill acquired in a business combination i

287、s,from the acquisition date,allocated to each of the groups cash generating units(or groups of cash generating units)that are expected to benefit from the combination.An impairment loss is recognised for the amount by which the assets carrying amount exceeds its recoverable amount.The recoverable am

288、ount is the higher of an assets fair value less costs to sell,and the value in use and is determined for an individual asset,unless the asset does not generate cash inflows that are largely independent of those from other assets of groups of assets.The fair value less costs to sell of the asset is a

289、ssumed to be the market value of the property.Value in use is assessed by reference to the estimated future cash flows which are discounted to present value using an appropriate pre tax discount rate.Impairment losses are recognised in the income statement.Where an impairment loss subsequently rever

290、ses,the carrying amount of the asset is increased to the revised estimate of its recoverable amount,but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset in prior periods.A reversal of an imp

291、airment loss is recognised immediately in the group income statement unless the impairment loss relates to goodwill in which case it is not reversed.(h)Leases(1)Where the group is the lesseeAssets held under finance leases,which transfer to the group substantially all the risks and benefits incident

292、al to ownership of the leased item are capitalised at the inception of the lease,with a corresponding liability being recognised for the lower of the fair value of the leased asset and the present value of the minimum lease payments.Lease payments are apportioned between the reduction of the lease l

293、iability and finance charges in the income statement so as to achieve a constant rate of interest on the remaining balance of the liability.Leases where the lessor retains a significant portion of the risks and benefits of ownership of the asset are classified as operating leases and rentals payable

294、 are charged in the income statement on a straight line basis over the lease term.(2)Where the group is the lessorAssets leased out under operating leases are included in property and equipment and depreciated over their estimated useful lives.Rental income,including the effect of lease incentives,i

295、s recognised on a straight line basis over the lease term.(i)Non current assets held for saleAssets whose carrying amounts will be recovered principally by sale rather than continuing use are classified separately as assets held for sale.Assets are classified as held for sale when management has com

296、mitted to their sale,the asset is available for immediate sale and a sale is highly probable.Assets held for sale are measured at the lower of their carrying value and fair value less costs of disposals.(j)InventoriesInventories are valued at the lower of cost and net realisable value.Cost includes

297、all costs of purchase,costs of conversion and other costs incurred in bringing the inventories to their present location and condition.The cost formula used is equivalent to a First in,First out method.(k)CashCash in the balance sheet comprises cash at banks and in hand.For the purpose of the group

298、and parent company cash flow statements,cash is net of outstanding bank overdrafts.Cash and cash equivalents include only deposits which mature in less than three months.(l)Trade and other payablesTrade and other payables are recognised initially at fair value and subsequently at amortised cost.When

299、 applicable,trade and other payables are analysed between current and non current liabilities on the face of the balance sheet,depending on when the obligation to settle will crystallise.(m)Interest bearing loans and borrowingsAll loans and borrowings are recognised initially at fair value.Directly

300、attributable transaction costs are capitalised and amortised over the life of the facility using the effective interest method through finance expense.After initial recognition,interest bearing loans and borrowings are subsequently measured at amortised cost using the effective interest method.(n)Ta

301、xationThe tax expense represents the sum of the tax currently payable and deferred tax.The current tax payable is based on taxable profit for the period.Taxable profit differs from profit before tax as reported in the income statement because the former excludes items of income or expense that are t

302、axable or deductible in other years and also excludes items that are never taxable or deductible.The groups liability for current tax is calculated using UK tax rates that have been enacted under UK law and that are applicable to the period.The current tax expense is recognised in the income stateme

303、nt unless it relates to items that are credited or charged to equity,in which case it is credited or charged directly to equity.Deferred tax is recognised on all temporary differences arising between the tax bases of assets and liabilities and their carrying amounts,with the following exceptions:whe

304、re the deferred tax liability arises from the initial recognition of goodwill or of an asset or liability in a transaction that is not a business combination and,at the time of the transaction,affects neither the accounting profit nor taxable profit or loss;Notes to the financial statements(Continue

305、d)YOUNG&CO.S BREWERY,P.L.C.ANNUAL REPORT 2014 31 in respect of taxable temporary differences associated with investments in subsidiaries or associates,where the timing of the reversal of the temporary differences can be controlled and it is probable that the temporary differences will not reverse in

306、 the foreseeable future;and deferred income tax assets are recognised only to the extent that it is probable that taxable profits will be available against which the deductible temporary differences,carried forward tax credits or tax losses can be utilised.Where capital gains have been rolled over f

307、or tax purposes,a deferred tax liability is recorded on the rolled over gain to reflect the tax that may be due on this amount at a future date.Where there has been an upward revaluation of an asset and the asset is expected to be realised through disposal,a deferred tax liability is recorded based

308、on the difference between the indexed cost of the asset less any capital gains which have been rolled over against the asset and the revalued amount.Deferred tax is measured on an undiscounted basis at the UK tax rates that are expected to apply on reversal of the underlying temporary differences,ba

309、sed on tax rates and laws enacted or substantively enacted at the balance sheet date.(o)Accounting for the ESOP TrustThe capital gains tax liability that may arise on the allocated shares in the Ram Brewery Trust II when they are transferred to employees on retirement is recognised as a provision in

310、 the financial statements.(p)Derivative financial instruments and hedgingThe group uses derivative financial instruments such as interest rate swaps to hedge its risk associated with interest rate fluctuations.From 1 April 2006,derivative financial instruments are initially recognised at fair value

311、on the date on which a derivative contract is entered into and are subsequently remeasured at fair value.Derivatives are carried as assets when the fair value is positive and as liabilities when the fair value is negative.The fair value of interest rate swap contracts is determined by reference to m

312、arket values for similar instruments.For those derivatives designated as hedges and for which hedge accounting is desired,the hedging relationship is documented at its inception.This documentation identifies the hedging instrument,the hedged item or transaction,the nature of the risk being hedged an

313、d how its effectiveness will be measured throughout its duration.Such hedges are expected at inception to be highly effective.Where cash flow hedge accounting is not applied,the movement in the fair value of the derivative is recognised immediately in the income statement.Where cash flow hedge accou

314、nting is applied,as in the case of the interest rate swaps held by the group,the effective portion of the gain or loss on the hedging instrument is recognised in the statement of comprehensive income,while the ineffective portion is recognised in the income statement.If the hedging instrument expire

315、s or is sold,terminated or exercised without replacement or rollover,or if its designation as a hedge is revoked,amounts previously recognised in equity remain in equity until the forecast transaction occurs,at which point they are transferred to the income statement.If the related transaction is no

316、t expected to occur,the amount held in equity is recognised immediately in the income statement.(q)Pensions and other post retirement benefitsThe company operates one defined benefit pension scheme,namely the Young&Co.s Brewery,P.L.C.Pension Scheme,a number of defined contribution pension schemes an

317、d a post retirement health care scheme.Contributions to the defined contribution schemes are recognised in the income statement in the period in which they become due.For the defined benefit scheme,the actuarial cost charged to the income statement in the period consists of the current service cost,

318、net interest on the net defined benefit liability or asset,past service cost and the impact of any settlements or curtailments.Remeasurement of retirement benefit schemes are recognised in full in the statement of comprehensive income in the period in which they occur.The net defined benefit pension

319、 liability or asset in the balance sheet comprises the present value of the defined benefit obligations less the fair value of scheme assets out of which the obligations are to be settled directly.Fair value is based on market price information and in the case of quoted securities is the published b

320、id price.The value of a net pension benefit asset is restricted to the sum of any unrecognised past service costs and the present value of any amount the group expects to recover by way of refunds from the scheme or reductions in the future contributions.Post retirement health care benefits are prov

321、ided for certain employees and certain directors.Entry to the scheme is on a discretionary basis.The annual premium for providing cover is determined by BUPA.This information is taken by qualified actuaries who then assess the reserve required to provide this benefit for participants future lifetime

322、s,using IAS 19 assumptions.The liability for new entrants is recognised through the income statement in the period in which the benefit is granted.Actuarial gains and losses arising from experience adjustments,and changes in actuarial assumptions,are recognised in full directly in the statement of c

323、omprehensive income.(r)Trade and other receivablesTrade receivables are recognised and carried at the lower of their original invoice value and recoverable amount.A provision for impairment is made when there is objective evidence(such as the probability of insolvency or significant financial diffic

324、ulties of the debtor)that the group will not be able to collect all of the amounts due under the original terms of the invoice.The carrying amount of the receivable is reduced through use of an impairment provision.Impaired debts are derecognised when they are assessed as irrecoverable.Strategic rep

325、ort Directors report Financial statements Shareholder information32 YOUNG&CO.S BREWERY,P.L.C.ANNUAL REPORT 2014323.Summary of significant accounting policies(continued)(s)Use of estimatesThe preparation of financial information in conformity with IFRS requires management to make certain judgements,e

326、stimates and assumptions that affect the application of policies and reported amounts of assets and liabilities,income and expenses.Although these estimates are based on managements best knowledge of the amount,event or actions,actual results ultimately may differ from those estimates.Estimates and

327、underlying assumptions are reviewed on an ongoing basis.Revisions to accounting estimates are recognised in the period in which the estimate is revised and in any future period affected.The areas involving a higher degree of judgement or complexity,or where the most sensitive estimates and assumptio

328、ns are significant to the financial statements,are set out in note 4.4.Key accounting estimates and judgementsThe following are the key judgements that management have made in the process of applying the groups accounting policies and that have the most significant effect on the amounts recognised i

329、n the financial statements.(a)Valuation of property and equipmentThe group is required to value property and equipment on a sufficiently regular basis using open market values to ensure the current carrying value does not differ significantly from the fair value.The valuation,performed by qualified

330、valuers,is based on market observations and estimates on the selling price in an arms length transaction,and includes estimates of future income levels and trading potential for each pub,as well as taking into account other factors such as location,tenure and current income levels.(b)Impairment of g

331、oodwillThe group considers annually whether goodwill has suffered any impairment in accordance with the accounting policy set out in note 3(g).The recoverable amounts of cash generating units have been determined based on value in use calculations.This calculation requires the use of estimates inclu

332、ding growth rates,capital maintenance expenditure and pre tax discount rates.See notes 3(g)and 16.(c)Business combinationsWhen assets are acquired,management determines whether the assets form a business combination.A fair value exercise of both the consideration and the net assets acquired is perfo

333、rmed once it is determined that a business combination has taken place.If the fair value of the consideration is in excess of the fair value of the net assets acquired,the difference is recognised as goodwill.If the opposite occurs,the difference is recognised in the income statement.The group makes judgements and estimates in relation to the fair value of the consideration,the net assets acquired