1、Annual Report for the 52 weeks ended 30 March 2020HighlightsRead more page 13Read more page 02Read more page 032020Post-IFRS 162020Pre-IFRS 1612019Pre-IFRS 16ChangePre-IFRS 16Revenue(m)311.6 311.6303.7+2.6%Adjusted operating profit(m)246.544.848.5-7.6%Operating profit(m)37.936.244.6-18.8%Adjusted pr
2、ofit before tax(m)237.738.543.4-11.3%Profit before tax(m)29.129.939.5-24.3%Net cash generated from operations(m)72.564.769.2-6.5%Adjusted basic earnings per share260.18p 62.22p72.13p-13.7%Basic earnings per share39.37p 41.41p64.36p-35.7%Dividend per share(interim and recommended final)10.57p 10.57p2
3、0.78p-49.1%Net assets per share312.05 12.0612.12-0.5%All of the results above are from continuing operations.1 The 2020 results have been reported under IFRS 16 whereas the 2019 results have been reported under IAS 17,with no restatement,as permitted by the accounting standard.The 2020 pre-IFRS 16 r
4、esults,which are provided for comparative purposes only,have been presented on a non-statutory illustrative basis,excluding the impact of IFRS 16.Refer to page 28 within the business and financial review for details.2 Reference to an“adjusted”item means that item has been adjusted to exclude non-und
5、erlying costs of 8.6 million(2019:non-underlying costs of 3.9 million)(see notes 9 and 10).3 Net assets per share are the groups net assets divided by the shares in issue at the period end.Strategic ReportYoungs pubs and hotels are at the heart of our local communities in London and the south of Eng
6、land.With more than 200 establishments,our award winning design approach means excellence in ambience as well as service and location.From poetic pubs steeped in history to secret underground cocktail bars,the character and individuality of each of our premises gives them a unique feel.Our pubs have
7、 style and soul,and the people who work with us have pride in our culture and passion for the work they do.Strategic Report02 Chairmans statement04 Youngs at a glance06 Our latest acquisitions08 Chief executives review 10 Our strategy and business model12 How we performed 14 Investing in our estate
8、16 Principal risks and uncertainties21 Corporate social responsibility23 Business and financial review29 Section 172 statementCorporate Governance34 Corporate governance statement36 Our board and leadership38 Corporate governance report45 Audit committee report51 Remuneration committee report54 Dire
9、ctors report62 Independent auditors reportFinancial Statements70 Group income statement71 Group statement of comprehensive income72 Balance sheets73 Statements of cash flow74 Group statement of changes in equity75 Parent company statement of changes in equity76 Notes to the financial statements118 F
10、ive year reviewShareholder Information119 Notice of meeting124 Explanatory notes to the notice of meeting126 Senior personnel,committees,advisers and others126 Shareholder informationContentsRead more page 11Read more page 08Read more page 2001Young&Co.s Brewery,P.L.C.|Annual Report 2020Welcome to Y
11、oungs Strategic ReportCorporate GovernanceFinancial StatementsShareholder Information+2.6%Revenue64.7mCash generatedI am very proud of the Youngs performance in a year overshadowed by a unique combination of challenges ranging from the weather and Brexit,to train strikes and,most recently,the corona
12、virus pandemic.The results demonstrate the continued strength of our strategy of operating a differentiated,premium and well-invested pub estate.The coronavirus had a significant impact on our business right at the end of the period and sadly it will continue to do so in the coming financial year.Fo
13、llowing the governments instruction on 20 March,we closed all our pubs that day,and then moved quickly to introduce measures that focussed on strengthening the liquidity of Youngs to safeguard its future.We postponed all planned capital investment,furloughed the vast majority of our pub and support
14、teams,and the board of directors took a temporary 20 per cent pay cut.We also accessed the Bank of Englands Covid Corporate Financing Facility(“CCFF”)and entered into new banking arrangements.These steps were designed to ensure we emerge from the current crisis having retained a strong balance sheet
15、 able to once again focus on delivering great hospitality to our customers,ensuring our pubs are the true heart of the community.Despite the challenges,trading for the majority of the year was really encouraging,with total turnover for the period up 2.6%to 311.6 million(2019:303.7 million).The estim
16、ated impact of the coronavirus on our March turnover was approximately 13.0 million,a reflection of the downturn in trade throughout March,culminating in the closure of our entire managed and tenanted estate for the final 10 days of the financial year.We achieved an adjusted EBITDA for the period of
17、 71.8 million(post-IFRS 16 reported adjusted EBITDA:79.6 million)compared to 72.8 million in 2019.Margin pressures across the industry remain and have been well documented.Despite our hard work in combatting increases in our cost base,it was the sudden decline in trade and ultimate closure of our pu
18、bs that had the biggest impact on profits.Given the immediacy and timing so close to the year-end,we had limited scope to remove costs in line with reduced revenues.Over the years,Youngs has continued to invest through a combination of acquisitions and own-estate investment,made possible through exc
19、ellent cash generation.This year was no different and we spent a total of 70.8 million.This included the acquisition of nine new sites,most notably an extraordinary collection of five of the finest managed house pubs in and around our south-west London heartland and the Surrey suburbs.Alongside them
20、,we accelerated our planned investment in all 14 of the Redcomb sites bought in January last year,and we continued to invest in our existing estate including in some of our iconic locations such as the Dog&Fox in Wimbledon Village,where we have created a wonderful new function space and added a furt
21、her 11 boutique bedrooms.In light of the unprecedented challenges posed in recent months,we have strengthened our liquidity position,both on a long-term basis and also in the short-term,to provide additional support.Long-term,we refinanced the 50.0 million term loan that was due to expire in March 2
22、021,with a new five-year facility that takes us to 2025.This facility also has two one-year extension options that could take it out to 2027.On a short-term basis,we issued 30.0 million in commercial paper under the CCFF last month and also now have the additional benefit of a new 20.0 million facil
23、ity from NatWest.Excluding our overdraft,Youngs now has in place 285.0 million of funds and committed facilities.As part of our focus on prioritising cash conservation in light of our pubs being closed,the board concluded that it was not appropriate to recommend payment of a final dividend for the f
24、inancial year just ended.Youngs has always prided itself on paying its investors consistent and growing dividends through the years;however,these are extraordinary times and as such require tough decisions.It has also been a year of change for the Youngs board,with two new members,Mike Owen(Chief Fi
25、nancial Officer)and Simon Dodd(Chief Operating Officer),joining in September.I am delighted with how they have both embedded themselves seamlessly into the business,embracing the culture and values of Youngs.The Youngs board is well placed to provide the strong leadership and direction necessary to
26、ensure we emerge from this current crisis ready to re-open the doors of our great pubs and welcome back our customers.Stephen GoodyearChairman3 June 202002Strategic ReportYoung&Co.s Brewery,P.L.C.|Annual Report 2020Chairmans statementAs custodians of many iconic pubs,we invest regularly in them to d
27、eliver a great experience for todays guests and to ensure we maintain our assets in a great shape for those of tomorrow.From picture postcard pubs steeped in history to secret underground cocktail bars,the character and individuality of our pubs gives them a highly unique look and feel.Our creative
28、designs look to maximise potential space,using responsibly sourced or reclaimed materials where possible.03Strategic ReportCorporate GovernanceFinancial StatementsShareholder InformationYoung&Co.s Brewery,P.L.C.|Annual Report 2020AprilVegecation We reached out to our customers and local communities
29、to share inspiration of our sustainable sourcing and provenance,encouraging them to grow with us this spring.JulyAcquisition of the White BearEntering Tunbridge Wells,an exciting new location for us,this premium freehold pub was transformed into a fashionable oasis,bringing the outside in through it
30、s unique secret garden.AugustSummer of SpritzCelebrating the summer,we launched a range of refreshing serves with a splash of colour,perfect to enjoy on those long sunny days spent in our wonderful beer gardens.SeptemberYoungs beer re-brandingWe launched the new font designs for our much loved beers
31、 ahead of autumn,including the re-branded Youngs Original.We also celebrated 188 years of Youngs.This years highlightsFrom ancient,oak-beamed village inns to east London underground cocktail bars,Youngs has been running some of the countrys best pubs for nearly 200 years.Weve seen seven monarchs,48
32、different Prime Ministers,two world wars and were still going strong today.Key factsYoungs at a glance 1831Established299.1mManaged revenue5,145Employees276Pubs20.3mPints sold166.3kHotel room nightsManaged house sales mix%2020Drink FoodAccommodation29665Revenuebreakdown%Pub segmentManagedTenanted207
33、69255201826920192762020Total number of pubs580201866820196872020Total hotel rooms04Strategic ReportYoung&Co.s Brewery,P.L.C.|Annual Report 20200-56-1011-1516-20More than 20Lewisham3Southwark10Lambeth13Bromley3Croydon2Sutton5Merton6KingstonUpon Thames8 RichmondUpon Thames18Hounslow2Hillingdon0Ealing5
34、Brent0Harrow0Barnet3Haringey0Enfield1WalthamForest0Redbridge0Havering0Barking&Dagenham0Newham1Bexley0 TowerHamlets6Wandsworth35Camden14Islington11Hackney3Westminster18Kensington&Chelsea10 Hammersmith&Fulham11City ofLondon9South West27South East44Greater London 205Greenwich8Since 1831,weve been runni
35、ng some of the best neighbourhood pubs,boutique hotels andcitybars in London and the south of England.No two of our pubs are the sametheyreflect the village vibes,suburb setting and city streets around them.LocationsOctoberCharity fundraisingTeams from our pubs and at Riverside House staged a range
36、of events across the month,raising almost 50,000 for a variety of charities such as Mind and Great Ormond Street Hospital.NovemberFood Made Good AwardsWe were nominated for two awards celebrating our sustainable fish sourcing and local produce,whilst recognising us in the top 20 sustainable business
37、es in the headline category award.JanuaryTop 50 Gastropub awardsThe Guinea(Mayfair)ranked an impressive 10th in this years list of the nations best gastropubs voted for by more than 400 pub owners,food critics and industry experts.MarchMajor acquisitionA highlight to close out the year saw us add fi
38、ve fantastic pubs,all well located in our south-west London heartland.This group of pubs are a must see,so do pop along and pay them a visit.05Strategic ReportCorporate GovernanceFinancial StatementsShareholder InformationYoung&Co.s Brewery,P.L.C.|Annual Report 2020 These latest additions to the man
39、aged estate are a testament to our acquisition strategy and we continue to be open to the right opportunities where we believe our premium offer will flourish.1.The Depot Kidbrooke Village A stylish and sophisticated pub in south-east London.During the last war the area was used by the RAF to store
40、barrage balloons as part of Londons defences against bombing raids.2.White Bear Tunbridge Wells Situated right in the heart of the town,this beautiful pub also boasts a secluded walled garden complete with retractable roof and garden grill.3.Canbury Arms Kingston upon Thames Fully refurbished in 201
41、9,this pub has been at the centre of Kingston community life for many years.4.The Crown St.Margarets,Twickenham A wonderful community pub with Georgian and Victorian heritage.A home from home for England rugby fans.5.Grantley Arms Wonersh Steeped in history,this stunning pub has been an active part
42、of the village for nearly 500 years.Includes private dining space,the Old Bakery,and a lovely terrace for al fresco dining.6.Onslow Arms West Clandon Located only a few miles from Guildford.Fantastic dining room and a large garden serving freshly prepared food,all day every day.7.Wheatsheaf Esher Th
43、is lovely 200 year old pub sits on the edge of the village green in the heart of the affluent Surrey suburb.8.Enderby House Greenwich Constructed in 1846,this historic building will be completely restored and extended.The large first floor terrace will offer fantastic views out over the river Thames
44、.This pub is due to open in 2020.9.Constitution Camden Dating back to 1858,this traditional Victorian pub has a large elevated terrace overlooking Regents Canal.Currently closed,this pub is due to undergo major investment.144Strategic Report06Young&Co.s Brewery,P.L.C.|Annual Report 2020Our latest ac
45、quisitions2567326307Young&Co.s Brewery,P.L.C.|Annual Report 2020 Strategic ReportCorporate GovernanceFinancial StatementsShareholder Information36.2mOperating profit70.8mCash investmentIn recent years we have faced and overcome numerous challenges,but none more threatening than the coronavirus pande
46、mic that has swept around the world in a matter of months.Following the governments instruction in March,we,along with our colleagues in the sector,shut the doors to our pubs.The 10 days of closure and the gradual decline in trade that preceded it resulted in an estimated 13.0 million shortfall in r
47、evenue and a disproportionately negative impact on profits,estimated to be 7.7 million.We recognise the importance of this closure of pubs in helping stop the spread of the virus and protect our employees,customers and the wider community as a whole.Investment drives growthOur strategy is to operate
48、 premium,well-invested,individual managed houses.We grow by investing in our pubs,by carefully selected acquisitions and by nurturing,training and investing in our staff.Total group revenue for the period was encouragingly up 2.6%to 311.6 million,an increase of 7.9 million,supported by the acquisiti
49、ons made in the previous year.Like-for-like sales ended the period down on the previous year by 2.4%,reflecting the challenges faced.The British weather often played its part,starting with the tough comparatives of last years exceptional early summer sunshine.Whilst temperatures improved through the
50、 later summer months,the remainder of the year was dominated by rain,with the wettest winter on record dampening peoples spirits.In December,when our pubs should be at their busiest as festive celebrations are in full swing,trade was hampered by the month-long rail strikes in London,and the first wi
51、nter election since 1923.The losses that followed from the unprecedented closures in the final weeks were severe due to the limited opportunity for mitigating action.Operating profit dropped by 8.4 million to 36.2 million(post-IFRS 16 reported operating profit:37.9 million).Once adjusted for non-und
52、erlying items,operating profit was 44.8 million(post-IFRS 16 reported adjusted operating profit:46.5 million),down by 3.7 million,with an operating margin of 14.4%.Amidst the tougher weeks of March,there was a significant boost with our purchase of five of the finest pubs in and around our south-wes
53、t London heartland and the Surrey suburbs,bringing our period-end total pub count to 276(2019:269).These pubs are a real standout acquisition for us:they are expected to deliver sales and EBITDA above the average for our managed house estate.Their premium offer is a perfect fit for Youngs and presen
54、ts us with an opportunity to learn from their success.The Canbury Arms(Kingston upon Thames),Crown(St Margarets,Twickenham),Grantley Arms(Wonersh),Onslow Arms(West Clandon)and the Wheatsheaf(Esher)are run with a focus on great food,a quality drinks offer and operational excellence from wonderful sur
55、roundings,and have easily made the transition into the Youngs estate.Unfortunately,due to the coronavirus pandemic,we have not had the opportunity to trade them for a period of time but we remain excited for when they get the chance to open their doors again.During the period,we added a further five
56、 pubs to our managed house division.In April 2019,we opened the Depot(Kidbrooke Village)through our ongoing partnership with Berkeley Homes.In mid-summer,we acquired the freehold of the White Bear(Tunbridge Wells):this was a unique opportunity to add a high turnover pub in an exciting new location f
57、or Youngs.The New Inn(Ealing)was the latest pub to transfer from the Ram Pub Company,finally re-opening,albeit briefly,in early March following an extensive redevelopment.We also completed on two fantastic sites for our pipeline:Enderby House,a long-leasehold on the banks of the Thames in Greenwich,
58、and the Constitution(Camden),a freehold sitting on Regents Canal,nestled between the bustling nightlife of Camden Town and the regeneration of Kings Cross.There were two managed house disposals in the period,as we exited the tied leases at the Builders Arms(Chelsea),a pub with Enterprise Inns,and th
59、e Alphabet(Islington),a pub leased from Star Pubs&Bars.We also sold the Bristol Ram at the tail of our tenanted estate.Within the existing estate,we have also made significant investment.In February,after 14 months on-site,we completed a multi-million-pound scheme at the Dog&Fox(Wimbledon Village)ad
60、ding 11 new boutique hotel rooms and the Coach House,a dedicated and dynamic function space offering capacity for up to 300 people.With further additions to our hotel room numbers,total managed room stock now stands at 687(2019:668 rooms).Elsewhere,we have invested heavily in the Redcomb pubs,bringi
61、ng them in line with the Youngs estate 08Strategic ReportYoung&Co.s Brewery,P.L.C.|Annual Report 2020Chief Executives reviewand unlocking their potential.The coronavirus shutdown has also impacted our investment plan,with a number of our pubs unable to show themselves following refurbishment this sp
62、ring.There were also schemes on-site which we were forced to put on standby until we are out the other side of the lockdown;we look forward to completing these in the coming months.ResilienceWe believe that one of the keys to our success is our ability to recruit,train and retain the very best peopl
63、e in the industry,and this is now more important than ever.The decision to retain all our staff following the outbreak of the coronavirus crisis by placing the vast majority on furlough not only helped safeguard the cash flow of the business but also ensures we are in a strong position when we re-op
64、en our doors.Our pubs proudly form vital places in their local communities,providing a place of sanctuary,whether that be somewhere to catch up with friends,meet for a family celebratory meal or relax with a quiet pint or two one sunny evening.During the recent uncertain and worrying times,it was gr
65、eat to see the individual acts of kindness across the estate,as our teams stepped up to help out the most vulnerable in their local communities,gifting food parcels to elderly neighbours,hospices and care homes,and delivering pre-prepared meals to NHS staff and other key workers.Our main priority is
66、 the safety and well-being of our people,our customers and our suppliers at this difficult time.The initial impact of declining volumes and subsequent full closure of our pubs as the virus spread during March was evident on a daily basis.However,predicting the extent of the damage that the coronavir
67、us will have on our business going forward is largely unknown.There is no experience of such a crisis,no clear indicators as to how long the pandemic or enforced shutdown will last and what,if any,will be the lasting effects on consumers.At times like this,our strong balance sheet,underpinned by our
68、 predominantly freehold and long leasehold estate(2020:83%),and combined with relatively modest levels of debt,has never been so vital.The speed at which our business was able to adapt was commendable,switching our working practices to enable greater home working,with all meetings held in a virtual
69、environment.We have taken decisions that will have an immediate and direct impact on our ability to conserve cash in the short term.Our largest expense,our wage cost,has been minimised with the decision to furlough the majority of our employees,both in the pubs and at Riverside House,combined with t
70、he board of directors taking a temporary 20 per cent pay cut.Last month,we accessed 30.0 million of short-term financing from the Bank of England under the CCFF,have further strengthened our long-term capital position and replaced our existing covenant tests with a minimum available liquidity requir
71、ement until June 2021.On behalf of the board and all my colleagues at Youngs,I want to say a huge thank you and pay tribute to our wonderful NHS staff,in particular,and also to all the critical workers out there doing their very best to keep us safe and well.OutlookOne thing we can be sure of is tha
72、t at some point the pandemic will pass.The fabulous weather we have experienced so far this spring has been a gentle reminder of the enormous opportunity our business has to bounce back once its safe for the governments restrictions to be lifted.I am looking forward to all of our team reuniting,open
73、ing the doors to our great pubs and welcoming back our customers once we are through this.Whilst the period of closure and any restrictions that may remain,are still unknown,there are many things to be excited by.The five new pubs acquired late in March traded for only a matter of days before they w
74、ere forced to close;they offer an immediate boost to both revenue and bottom line profit,with no additional capital expenditure required.The significant investments we made last year in our existing estate will give us further growth potential as soon as we reopen our pubs it was one of our most exc
75、iting and biggest investment years and Im looking forward to seeing what our customers think.Optimistically,we are looking forward to continuing our consistent growth records of previous years but accept that it will take time for things to normalise.We are grateful for the positive moves made by th
76、e Chancellor to ensure that great businesses like ours survive these particularly tough times.Through extending the job retention scheme until October he has given us a degree of certainty in uncertain times,whilst the support of the business rates holiday will be a welcome 14.5 million cost saving
77、in the coming year.We are confident with the steps we have taken to safeguard our business from the immediate threat of coronavirus.The board expects our pubs to have opened by 3 August and for trading in FY21 to be materially below average.We expect sales to return to more normalised levels in FY22
78、 when this unprecedented period is at an end,and we remain confident in our proven strategy.Patrick DardisChief Executive3 June 202009Strategic ReportCorporate GovernanceFinancial StatementsShareholder InformationYoung&Co.s Brewery,P.L.C.|Annual Report 2020 We grow through investing in our estate 11
79、 12 We look to grow through a combination of investing in our existing pub estate,opportunity-led acquisitions and our people.Each year,on average,we reinvest about two-thirds of the cash we generate.Much goes back into our existing estate in the form of transformational developments and maintenance
80、 to the high standard our customers expect.In carrying out developments,we look to improve current trading area efficiencies and increase each pubs trading space;the latter can see upper parts converted into accommodation,function rooms and rooftop bars;basements become cocktail bars and outdoor spa
81、ces turned into beautiful gardens with Burger Shacks.We invest in hand-picked acquisitions 7 11 We also invest in hand-picked acquisitions,based in locations where we feel our style of operation will thrive,as well as benefitting the surrounding area.All acquisitions have to pass our strict internal
82、 investment criteria.Through our experience and expertise,we assess what we believe an acquisition can realistically achieve;what it may currently be doing is often less relevant.We are a people business 7 11 12 We believe in investing in our people,nurturing our own talent,so they are able to conti
83、nue to grow our businesses by surprising and delighting our customers.Our individually-tailored development programmes allow people at every level in our business to explore opportunities and we encourage the entrepreneurial spirit that has ensured our place as industry leaders.Entrepreneurs can be
84、a rare commodity in the hospitality industry and getting the right fit for both parties can be a challenge as well as time consuming and expensive.Promoting our internally developed talent pool therefore ensures our future leaders know who we are and what we stand for,giving us and our teams a head
85、start in growing our business and increasing our productivity.We run a predominantly freehold estate 7 11 12 We believe freehold assets give us greater control and opportunities within our business,whether this is,for example,insulating us against potential rent increases or providing us with greate
86、r freedom to do up and improve our pubs.A predominantly freehold backed estate also enables us to negotiate better terms with lenders,whilst allowing us to also benefit from increases in property values.We focus on differentiated,premium,drink-led pubs 3 8 Within our managed segment,we operate diffe
87、rentiated,premium,mostly drink-led pubs in London and southern England.Our locations are mainly in areas that have a high proportion of affluent and discerning customers derived through a mixture of residential,leisure and work where our premium product offerings are greater suited.Revenue mix 3 8 1
88、0 Our revenue mix is 65.7%drink,29.6%food and 4.7%accommodation.Although food is an important part of our offer,we run pubs,not restaurants,which can be more labour intensive.Our drink-led offer is supported by our locations which are often within walking distances of public transport links.We run a
89、 small quality tenanted estate 3 We also run a small quality tenanted estate which extends our reach into other geographical areas.Our tenanted estate allows us to work in partnership with engaging entrepreneurs to run sustainable businesses.Tenanted pubs are less labour intensive than managed house
90、s,increase our buying power with suppliers and are cash generative.They also allow us to acquire freehold pubs with tenants in situ that we can service through our tenanted operation and,when the time is right for both parties,transfer these pubs into our managed estate.We use our combined buying po
91、wer 4 8 13 We use the combined buying power of our managed and tenanted estates to source the best products for the best prices from a small number of suppliers we buy predominately British produce,supporting the local communities we operate in.Although the suppliers we use stretch across the estate
92、,our general managers are given the freedom and flexibility within guidelines to run the pubs to best fit and contribute to the communities in which they reside.This individuality is supported by the uniqueness of the pub designs which dont follow a particular format or concept but have a welcoming,
93、cosy theme to offer our customers that home-away-from-home feel.The risk links reference to Principal risks and uncertainties on pages 16 to 19.10Strategic ReportYoung&Co.s Brewery,P.L.C.|Annual Report 2020Our strategy How we growOur business model How we create valueYoungs is one of the oldest pub
94、companies and our authentic pubs have been around since1831.We see our heritage as a foundationfor oursuccess.At the centre of their community,our individual pubs offer a premium yet personal experience and are well-loved by our customers as much as by us.Our friendly,lively and excellent customer s
95、ervice is convivial hospitality at its best.11Young&Co.s Brewery,P.L.C.|Annual Report 2020Strategic ReportCorporate GovernanceFinancial StatementsShareholder InformationRevenue mThis is our total group revenue,including both our managed and tenanted businesses.Adjusted EBITDA mThese are our pre-IFRS
96、 16 earnings before interest,taxes,depreciation and amortisation adjusted to exclude any non-underlying items for the group.(See notes 9 and 10).Gearing%This is our net debt divided by our net assets shown on a pre-IFRS 16 basis(expressed as a percentage).Like-for-like revenue%This is our revenue mo
97、vement for this period compared with the previous period for our managed pubs and hotels that traded throughout both periods.Adjusted profit before tax m This is our pre-IFRS 16 profit before tax on continuing operations only,adjusted to exclude any non-underlying items for the group.(See notes 9 an
98、d 10).Interest cover(times)This is our adjusted operating profit divided by our finance costs shown on a pre-IFRS 16 basis.RevPAR This is our revenue per available hotel bedroom;it is the average room rate achieved multiplied by the occupancy percentage.Adjusted earnings per share(p)This is our pre-
99、IFRS 16 adjusted profit before tax,but after tax has been deducted,divided by the weighted average number of ordinary shares in issue.(See notes 9 and 15).Recycling(tonnes)This is the amount of waste we recycle and divert from landfill.279.32018303.72019311.6202003502501505068.7201872.8201971.820208
100、0604020025.6201827.6201933.62020151050352025304.220185.12019-2.420206402-241.0201843.4201938.52020503020100408.420189.720197.3202064201281064.88201861.44201959.23202080604020067.74201872.13201962.2220208060402006,83020187,40320197,45820208,0006,0004,0002,0000We measure the development,performance an
101、d position of our business against a number of key indicators.The reference to an“adjusted”item means that item has been adjusted to exclude non-underlying items.These alternative performance measures have been provided tohelp investors assess the groups underlying performance.12Strategic ReportYoun
102、g&Co.s Brewery,P.L.C.|Annual Report 2020Key Performance IndicatorsOur industry leading digital excellence helps us stay in tune with our customers lifestyles.Our optimised websites allow customers to find and book space at their favourite pub,whilst our social media channels improve our reach,search
103、 and connectivity.Once in a pub,handheld tablets help facilitate the speed of service and customer interaction.Our On Tap app provides useful features for our customers,whether its the ability to surprise and delight with treats,the electronic bar tab with a mobile pay solution or simply to find out
104、 whats on in their favourite Youngs pub.13Young&Co.s Brewery,P.L.C.|Annual Report 2020Strategic ReportCorporate GovernanceFinancial StatementsShareholder Information131344A core characteristic of Youngs success in recent years has been the consistent investment in our pubs for future growth.314Strat
105、egic ReportYoung&Co.s Brewery,P.L.C.|Annual Report 2020Investing in our estate21.Boathouse Putney A wonderful refurbishment creating a fresh and vibrant riverside pub.3.Dog&Fox Wimbledon Village Our multi-million pound project was completed in March,creating 11 new boutique hotel rooms and the Coach
106、 House function space.5.Green Man Putney The pub has had a complete makeover with a glass extension adding extra dining space.The project is due to complete in the summer of 2020.2.Grove Exmouth This improved warm cosy pub is perfectly complemented by a stunning sea-view garden.4.New Inn Ealing Foll
107、owing an extensive refurbishment,the pub now offers a truly premium experience with a Chefs table and a fabulous garden.6.City Gate Exeter We have added a further five boutique bedrooms to this popular hotel in the heart of the city.4615Young&Co.s Brewery,P.L.C.|Annual Report 2020Strategic ReportCor
108、porate GovernanceFinancial StatementsShareholder Information The principal risks and uncertainties facing the group are listed below.It is not an exhaustive list of all significant risks and uncertainties;some may currently be unknown and others currently regarded as immaterial could turn out to be
109、material.Further information on the groups financial risk management objectives and policies are set out in note 24 starting on page 102.Risk/UncertaintyPotential impactMitigationChange in risk/uncertaintyMajor external event leading to widespread pub closures and/or a huge decline in demand1.An exa
110、mple of this is the spread of a disease recent and current experience has shown the potential for something like this to have far-reaching and unexpected consequences for our business.As the coronavirus pandemic spread around the globe in 201920,some of these consequences became apparent and resulte
111、d in a very material and unforeseeable impact on our business.This will depend on the nature of the event,its impact and reach and the reaction to it by the Government,consumers,business and others.For the actual impact on our business of the 2019-20 spread of the coronavirus,see elsewhere within th
112、is strategic report.This will depend on the nature of the event,its impact and reach and the reaction to it by the Government,consumers,business and others.Examples of the risk/uncertainty that could flow from a major external event leading to widespread pub closures and/or a huge decline in demand,
113、and therefore what we might possibly do to mitigate its effect,are set out below.For details on what we did in response to the 201920 spread of the coronavirus,see elsewhere within this strategic report.2.Our revenue is derived from our managed and tenanted pub estate.All pubs were ordered to be clo
114、sed by the Government on 20 March 2020.It is not known when they will be allowed to re-open and,once re-opened,what measures,if any,the Government may insist remain in place and for how long to help combat this pandemic.Such measures could include social-distancing restrictions designed to limit soc
115、ial interaction between people in order to reduce the transmission of the coronavirus.Whilst the pubs are closed,we will derive no revenue from them or,in reality,from our tenants.If pubs re-open with measures in place,it is highly likely those measures will result in reduced revenue,resulting in lo
116、wer than expected profits.If our pubs re-open but with measures in place,we would respect those measures and adapt our ways of operating for the safety of our staff and customers.It is anticipated that this would see a slower build-up in trade until things reverted to normal,hopefully no more than a
117、 matter of months later.In the background,we would gear up our operations to get back to normal as soon as possible,assisted by a team able to respond on a day by day basis.Subject to that,we would look for our pubs to continue to be a hospitable and welcoming home from home and,where they can,play
118、an important and wider role in the heart of the local community.See also 3.Consumer-related3.Our revenue is largely dependent on consumer spending within our managed estate.A consumers decision to spend their money can be affected by a broad range of matters(including those set out in 1,confidence i
119、n the economy,the weather,fears of terrorist activity and greater awareness of the potential adverse health consequences associated with alcohol)set against a choice of where to go and what to do.A reduction in our revenue could result in lower profits.Our pubs and hotels are mainly spread throughou
120、t London and Southern England,with the majority inside the M25.Through them,we provide a hospitable and welcoming home from home,often at the heart of the local community.They benefit from customer-focussed designs,high service standards,quality food(including vegan and vegetarian options)and market
121、-leading drinks(including non-alcoholic options),all of which 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.Strategic Report16Young&Co.s Brewery,P.L.C.|Ann
122、ual Report 2020Principal risks and uncertaintiesRisk/UncertaintyPotential impactMitigationChange in risk/uncertaintyFinancial4.Various factors may result in the amount we pay for our key supplies(including food,drink,gas and electricity)and labour being increased.Following on from the Governments in
123、troduction of the National Living Wage,the hourly rate was increased to 8.72(from 8.21)with effect from 1 April 2020(for those aged 25 and over),with annual stepped increases,announced each year,to follow.Increased costs could potentially make our offer less attractive to consumers if they are passe
124、d on.See also 13.A reduction in our revenue and/or an increase in our costs will have an impact on our margins and could result in lower profits.Fixed-price arrangements are in place with some of our food and drink suppliers.Regarding utilities,we continually look at ways of reducing our levels of c
125、onsumption;we also regularly review our energy needs and price changes in the market,and,where appropriate,we make forward purchases.Increased wages may result in consumers having greater capacity to absorb increased prices,but any shortfall will need to be mitigated through greater labour and other
126、 efficiency gains.5.The pub industry is subject to a variety of taxes,including business taxes,duty on alcoholic drinks and business rates.The introduction of new taxes and/or increases in the rates of existing taxes could result in lower profits.As regards rates,we retain the services of specialist
127、 rating consultants who review each and every rating assessment.Appeals are lodged on our behalf where the new assessments are deemed excessive.6.We operate a defined benefit pension scheme that has to be funded to meet agreed benefit payments.The value of the scheme can be impacted by a variety of
128、factors,including changes in life expectancy assumptions,lower than anticipated performances of the stock market and reduced bond yields.We also operate two defined contribution pension schemes that require minimum levels of contribution from the company set by the Government.Variations in the diffe
129、rence in value between the assets of the defined benefit scheme and its liabilities may increase the amount we are required to pay into it in order to account for past service benefit deficits and future service benefit accruals.An increase in our contribution levels to the defined contribution sche
130、mes could result in lower profits.The defined benefit scheme was closed to new entrants in 2003 and we make additional contributions over and above regular service contributions to help address any funding deficit.We also maintain a close dialogue with the schemes trustee.To limit further the potent
131、ial exposure,future service benefits accruing to remaining active members were reduced from April 2016,with member contributions being increased in tandem.7.Our financial structure involves bank borrowings and senior secured notes due 2039.The business therefore needs to generate sufficient cash to
132、repay these debts with accrued interest.Interest rates are also subject to change.See also 12.Our ability to trade as a going concern depends on us generating sufficient cash to meet these repayments.The groups debt profile is long-dated,facilities are committed and debt is carefully managed within
133、financial covenants.A mix of debt at fixed and variable interest rates is also maintained,with interest rate swaps used to assist in managing this exposure.Strategic ReportCorporate GovernanceFinancial StatementsShareholder Information17Young&Co.s Brewery,P.L.C.|Annual Report 2020Risk/UncertaintyPot
134、ential impactMitigationChange in risk/uncertaintyOperations8.We rely on a number of key suppliers to provide our pubs and hotels with food and drink.Supply disruption could affect customer satisfaction,leading to a reduction in our revenue which could result in lower profits and growth rates.Food an
135、d drink is sourced from a number of suppliers.Informal arrangements are also in place such that substitute suppliers or products could be used if required.Our offering provides an attractive showcase for food and drink suppliers we therefore anticipate that new suppliers would be ready and willing t
136、o come on board relatively quickly should there be limited disruption of our food and drink supply chain.We regularly review our choice of suppliers.9.We,and particularly our managed estate,are reliant on information systems and technology for many aspects of our business,including communication,sal
137、es transaction recording,stock management,purchasing,accounting and reporting and many of our internal controls.Information systems can be at risk of failure due to technical issues and the growing threat of cyber attack.Any failure of such systems or technology would cause some disruption,and any e
138、xtended period of downtime,loss of backed up information or delay in recovering information could impact significantly on our ability to conduct business.Firewalls and anti-virus software are installed to protect our networks.Information is routinely backed up and arrangements are in place with a th
139、ird party provider to assist with data recovery.An off-site disaster recovery facility is also available should any major incident occur at Riverside House or to our systems.The IT needs of the business are regularly monitored and we invest in new technology and services as necessary.10.We are depen
140、dent on having the right people throughout our organisation:at all our pubs and hotels and also at Riverside House.See also 13.Our ability to achieve our strategic and operational objectives could be affected if we are unable to attract and retain the right people with the desired skillsets.We look
141、to recruit and retain the best talent.The remuneration and reward packages we offer are competitive and designed to retain and motivate staff.We have training and development programmes in place so that our people have the right skills to perform their jobs successfully and achieve their full potent
142、ial.Having gained“employer provider”status,which enables us to be an official training provider for apprentices,our training programme is now active and we are developing our own talent pool for the future.11.Part of our growth plan is based on acquiring and/or developing additional pubs and hotels/
143、rooms.If acquisitions do not take place and/or developments do not occur when planned,or at all,our desired future growth rate could be delayed or reduced.We have relationships with a variety of third parties to ensure,as far as possible,that we are made aware of acquisition opportunities as and whe
144、n they come up.We have provided a number of agents and landlords with details of our preferred site profiles.Strategic Report18Young&Co.s Brewery,P.L.C.|Annual Report 2020Principal risks and uncertainties continuedRisk/UncertaintyPotential impactMitigationChange in risk/uncertaintyRegulation12.We ar
145、e required to meet a range of ever-increasing compliance,regulatory and health and safety obligations in the operation of our business.A failure to comply with these obligations could damage our reputation,see us being fined,and,as regards health and safety,result in an accident or incident occurrin
146、g involving injury,illness or even loss of life.All of these could possibly lead to a reduction in our revenue and lower growth rates.Increases in the cost of compliance could have an impact on our margins and result in lower profits.We carefully monitor legislative developments,and our training pro
147、grammes,policies,processes and audits are designed to promote and achieve compliance with our obligations.Health and safety audits are undertaken by a third party who also works with us to ensure changes in health and safety practices and procedures are incorporated into our business and reviewed on
148、 a regular basis.Insurance cover to help with any financial compensation that may be payable as a result of an accident or incident has been taken out.Brexit 13.The UKs decision to leave the European Union(“EU”)has led to a heightened degree of uncertainty.The introduction of trade barriers could ma
149、ke it costlier for the UK to do business with the EU and there is also a risk that it will become more difficult for UK businesses to hire from the EU.We are a UK business with a predominantly UK supplier base and fixed price arrangements in place across many of those relationships.We are also an em
150、ployer of choice with a strong track record of retaining talent.Having gained employer provider status,we are an official training provider for apprentices,thus allowing us to develop our own talent pool for the future;this is expected to help mitigate staffing issues should certain of the groups EU
151、 staff(currently representing c.29%of the workforce)be forced to leave the UK post-Brexit,albeit we are looking to support them to stay in the UK.See also 4 and 10.Key to change in the risk/uncertainty level from the prior period Decrease No change IncreaseStrategic ReportCorporate GovernanceFinanci
152、al StatementsShareholder Information19Young&Co.s Brewery,P.L.C.|Annual Report 2020Our people are,and always have been,ourgreatestasset.With this in our minds,weensure that everything we do for our people centres aroundthem.From progression and building careers in hospitality,to caring for their phys
153、ical,mental and financial well-being,everything we do helps to ensure we continue to be a people-focussed employer of choice.Celebrating diversity,we are committed to providing an authentic and honest workplace,and doing it with pride.20Young&Co.s Brewery,P.L.C.|Annual Report 202020We are committed
154、to investing in our people and their future.We conduct our business in a socially and environmentally responsible manner,benefiting the communities in which we work and remembering that we are custodians of a long and proudhistory.Our people Our teams are our greatest asset,and we have always believ
155、ed that how we nurture and develop them is crucial in delivering our people-focussed strategy.At 30 March 2020 we employed 5,145(2019:4,874)people and we see everyones well-being as vitally important for them to enjoy and continue working with us.Recognising the ever-increasing importance of mental
156、health and well-being in the workplace,at the start of the year we held a mental health awareness day at Riverside House.Aimed at improving communication and raising awareness on the subject,it included a keynote address from well-known mental health advocates Neil Laybourn and Jonny Benjamin.Alongs
157、ide this,we extended our mental health first aider initiative,training a further 57 mental health first aid champions across our head office team and general managers.This gave our team of champions the necessary skills to provide support and advice to employees with mental health issues and to thei
158、r line managers.A dedicated email address is available to employees to report concerns about others in the workplace,with all reported issues fully investigated,and advice or referral to external services provided.Further mental health training has been given to our head office employees and to thos
159、e in our pubs,alongside a workshop held by the Licensed Trade Charity on the support they can offer to people in need.We are proud of the support package that is available to all our employees.For those in need of someone to talk to,we offer fully funded confidential,one-to-one counselling sessions
160、with a qualified professional at no cost to the individual.Our employees also have access to a 24/7 free confidential telephone counselling service,offered by the Licensed Trade Charity.Since October 2018,we have been partnered with Salary Finance to offer free support and advice to employees to hel
161、p them live healthier,happier lives through the current and future financial decisions they make.Working with Salary Finance,we also assisted in the introduction of a financial support programme aimed at helping our staff get out of any financial difficulties they may find themselves in by offering
162、access to their salary as it is earned and to affordable loans.Since the programmes launch,17%of our employees have engaged with the Salary Finance team,with 57 eligible employees having successfully received support through the scheme offered.Finally,the training and development of our teams is vit
163、al to our success.Our Management Academy,due to start its 9th cycle,plays an integral part in our recruitment strategy,providing the next generation of talented general managers,head chefs and support roles based at Riverside House.This year we are pleased that internal candidates filled 72%of our g
164、eneral manager vacancies,up from 64%last year.The government-recognised Youngs apprenticeship scheme is an 18-month commitment focussing on progressing people through a recognised qualification that starts them on the Youngs career pathway,through the kitchen,front of house or at Riverside House in
165、a support function.More than 70%of our first-year chef academy graduates have achieved distinctions in their final assessments.Strategic ReportCorporate GovernanceFinancial StatementsShareholder Information21Young&Co.s Brewery,P.L.C.|Annual Report 2020Corporate Social ResponsibilityOur communityOur
166、pubs play an important part in the heart of their communities and we are extremely proud of the continued efforts they make in this regard,now more than ever.As the outbreak of the coronavirus began to spread,we introduced very clear guidelines on social-distancing and upheld strict health and hygie
167、ne measures to protect our teams and our customers.Following the Government restrictions which forced our pubs to close,our teams took it upon themselves to do what they could to help vulnerable people,the NHS staff and other key workers in their communities.Andy,the general manager at the Grove(Bal
168、ham),and his team cooked off all their perishable foods following closure and delivered a range of meals to the London Ambulance team in Wimbledon,who have been busy supporting those on the front line.General manager Connal,with the team at the Dukes Head(Wallington),has also been busy in the kitche
169、n.Working in connection with Sutton Community Farm,they have been producing meals for Age UK,supporting those at risk in their community,and for their local NHS workers.With the unprecedented demand for food banks,Daisy,the manager at the Marquess of Anglesey(Covent Garden),has been volunteering for
170、 North Paddington food bank where she and members of her team have helped support vulnerable and struggling households with daily food deliveries.These are just a few examples of the support provided by our teams across the estate and we are extremely proud of their contribution to their local commu
171、nities.This was the second year for our co-ordinated charitable fundraising as teams from the pubs and Riverside House held local,individual and unique events raising money for a variety of good causes.Throughout the month of October,teams took on various challenges,including a group skydive,pub qui
172、zzes,walking a marathon 26-mile distance between pubs with the team from one area ambitiously visiting all Youngs 200 managed houses in 24 hours.Supporting both local and national charities,we were delighted to equal the total from last year of almost 50,000.Charities selected included the Alzheimer
173、s Society,Battersea Dogs&Cats Home,Breast Cancer Now,Great Ormond Street Hospital,Mind,Noahs Ark Childrens Hospice and St Georges Hospital.We look forward to beating the total raised this year.Following recent upgrades to our IT equipment,we donated outdated surplus computer hardware,valued by Socia
174、lBox.biz at over 250,000,to a“laptops for the homeless”initiative.Run by a London-based social business venture,the surplus tablets wiped clean for future use will benefit homeless people,elderly and refugees in London and beyond housed in accommodation services.This donation has been particularly w
175、elcome during the current lockdown.Our environmentWe continue to work hard to improve the environment in which we operate.Last year we saw a slight improvement in our recycling,with an increase of 0.7%to 7,458 tonnes(2019:7,403 tonnes)and we proudly continued to avoid sending waste to landfill.We re
176、main an active member of the Sustainable Restaurant Association,and this last year were awarded a best in class three-star rating.In recognition of our efforts to reduce,re-use and recycle,and celebrating the seasonal,local and responsible sourcing of our produce,we were nominated in two award categ
177、ories:Celebrate Local and Seasonal and Source Fish Responsibly.Alongside these,Youngs featured in the top 20 of sustainable businesses in the Food Made Good Business of the Year category.Playing our part in the battle to combat single use-plastics,we have now built on the withdrawal of plastic straw
178、s by introducing a bespoke recycling service for single-use plastic glasses.Trialled at five of our highest volume sites last year,we recycled over 2.2 tonnes of plastic glasses,equating to more than 5,000 individual glasses.Following a successful trial in February,this coming year we will make the
179、move to re-usable Youngs branded plastic glasses which are able to be washed on-site.There are further improvements we can make to our plastic usage and we continue to review this in conjunction with our suppliers.Patrick DardisChief Executive3 June 2020Strategic Report22Young&Co.s Brewery,P.L.C.|An
180、nual Report 2020Corporate Social Responsibility continuedManaged housesThe past 12 months have provided many highlights for our managed house division as trading was,for the most part,consistent and encouragingly ahead of last year.The acquisition of the Redcomb pubs in January last year has support
181、ed the growth achieved,with total managed revenue up by 3.0%,to 299.1 million.Unsurprisingly,the governments enforced closures late in March,and the preceding weeks decline in sales as the coronavirus started to spread,had a significant impact,with like-for-like sales finishing down by 2.4%(2019:up
182、by 5.1%).Each year presents itself with fresh challenges as we look to continue our long-standing record of consistently growing profits in our managed house division;this was no different.Despite combating further external increases to our cost base,whether they were business rates,the rising natio
183、nal living wage or from elsewhere,it was the unexpected pub closures that had such a disproportionate impact on profits,especially given the timing so close to the year end.In total,managed adjusted operating profits were down by 5.0%,to 58.4 million (post-IFRS 16 reported adjusted operating profit:
184、59.9 million).Our focussed approach of adding hand-picked acquisitions in great locations saw us add further to our managed estate,bringing the total house count to 207 pubs,including 30 hotels,an increase of six pubs over the year.The standout purchase of five unique pubs in our heartland was a rea
185、l highlight.Their premium food offers,high-class drinks menus and operational excellence are a perfect fit for Youngs.These high turnover pubs will increase our batting average and add further quality to our estate.It is a shame they were only open for a short while before the forced closure,but the
186、y will prove to be a great purchase in the coming years.Elsewhere,it has been another period of extensive investment in the managed estate with a number of eye-catching development projects,an acceleration in our planned investment of the Redcomb pubs and,further maximising our hotel room opportunit
187、ies,the addition of 19 rooms to our stock.The year culminated with the completion of the multi-million-pound scheme at the Dog&Fox hotel in Wimbledon Village.Total drink sales were ahead of last year by 2.0%,but down on a like-for-like basis,by 2.6%.With the endless days of beautiful spring sunshine
188、 last year,it was always going to be a challenging start to this period,then made even harder by the cooler and more varied weather of the summer.The weather improved latterly in the summer months,leading to record sales over the August bank holiday,and the positives continued through September.As t
189、he weather turned in autumn,the rain seemed to dominate the skies for a sustained period and by the time we had reached Christmas it had achieved fame as the wettest winter on record.Last December will also be remembered for the first winter election since 1923 and a month when train strikes struck
190、down London commuters,severely affecting peak trading.All of this came before the coronavirus pandemic spread,culminating in the shutdown of pubs in March and brutally impacting on sales growth comparatives this year.Rugby autumn international fixtures at Twickenham,which form an integral part of th
191、e sporting calendar in our heartland,were moved from November to this summer as part of the preparations for the rugby world cup.Held in Japan,the kick-off times for matches were not ideal due to the time difference,but breakfast audiences in our pubs grew with each round as England progressed all t
192、he way to the final.These early morning games proved popular for pints of Guinness,managing to offset the lost sales from the shift in autumn fixtures,with sales of the rugby famed stout ahead of last year by an impressive 11.7%.Volumes of lager didnt fare as positively.They were competing against t
193、ough comparatives with last years sales boosted by the sunshine start and an equally impressive performance from the mens England football team at their world cup.In this period,lager sales were down by 5.0%,with draught cider also down by 9.5%.Ahead of autumn,we completed the rebranding of our much
194、-loved Youngs beers,including the renamed Youngs Original;this extended to new livery on Youngs dray lorries,further endorsing our famous brands throughout our heartland.This was not enough to halt the slide of cask ale sales;although cooler temperatures did help boost volumes through the summer mon
195、ths,sales ended down on last year by 4.9%.Outside of draught lager,the top-selling product was Beavertown Neck Oil,demonstrating the ever-increasing popularity of premium brands to our customers,supported by continuing growth from the keg ale category,where sales were up 4.7%.Premiumisation also has
196、nt slowed within the wine and spirits categories.Despite the closures preventing gin from breaking more records,the premium priced serves of gin,the colourful selection of spritzers and our growing cocktail range remained attractive to customers.Resurgent ros wine sales were ahead of last year by 1.
197、7%;although popular through summer months,sales have established themselves throughout the year with the additional upsell opportunity of magnum bottles proving a hit with customers.Strategic ReportCorporate GovernanceFinancial StatementsShareholder Information23Young&Co.s Brewery,P.L.C.|Annual Repo
198、rt 2020Business and financial review+3.0%Total managed sales58.4mManaged adjusted operating profitIn total,food sales were up 5.1%,but down 1.7%on a like-for-like basis.Food sales,at the expense of drink,were the beneficiary of the cooler weather at the start of the year,with sales of Sunday roasts
199、and classic pub dishes performing strongly.At Christmas,pubs looked to maximise the premium offer,serving our guests with stunning centrepieces where they were able to opt for whole roasted turkeys,geese and ribs of beef.It continues to be a challenging marketplace,never more so than now,but we rema
200、in confident in our food strategy.We have an expert team of executive chefs who work tirelessly to ensure that British,seasonal and fresh produce are at the heart of every dish we serve.Our five Youngs classics and the ultimate Sunday roasts remain at the core of our strategy.Outside of the classics
201、,chefs have the flexibility to create individual menus and inspirational dishes that are unique to their business.We are proud of the recognition our pubs receive for their food,none more so than the Guinea(Mayfair)which was crowned 10th Best Gastropub in the UK.This traditional and historic pub has
202、 built a reputation as one of Londons most acclaimed steakhouses,specialising in serving premium dry-aged British beef.At Youngs,its not just our drink and food that delights our customers and attracts new ones,but much also comes down to the individuality of our pubs themselves.Last winter in Wands
203、worth,the Chronicles of the County Arms opened its magical doors.Inspired by classic tales,customers were able to step through the wardrobe into an outside trading area that had been creatively transformed into a snow-filled winter forest with frost-covered pine trees,snow-topped tables,woodland fea
204、tures and lanterns.Wrapped in faux fur blankets on the throne-style seating,they were able to enjoy seasonal winter cocktails,accompanied by a gooey cheese fondue,in an enchanted winter garden.The growth from new hotels in the past two years has driven the rise in accommodation sales,up by 5.3%this
205、year.Total room stock has increased by 107 rooms in this two-year period,both through acquisition and organically,maximising potential room capacity at existing properties,bringing the year-end total room stock to 687.This growth was unable to offset the lost sales from the lockdown in March;like-fo
206、r-like room sales were down by 3.1%.Total occupancy rates were 70.5%,down by 2.4%pts on the previous year,and RevPar decreased by 2.21,or 3.6%,to 59.23.The designated capital investment set aside each year for hotels has enabled us to raise more of our room stock to boutique standard,modernising bat
207、hrooms and installing air conditioning,to meet the long-term vision of our room quality.This year we have upgraded room standards at the Seagate hotel(Appledore),added new rooms at the established Bear(Esher)and City Gate(Exeter),and,following its acquisition last year,transformed the Canford Hotel,
208、which sits on the cliffs on the south coast near the tourist hotspot of Sandbanks.InvestmentWe were excited to have added further to our managed portfolio,in particular the acquisition of five fantastic premium businesses in March.The Canbury Arms(Kingston upon Thames),Crown(St Margarets in Twickenh
209、am),Grantley Arms(Wonersh),Onslow Arms(West Clandon)and the Wheatsheaf(Esher)are a perfect fit,well located in and around our existing managed estate.Elsewhere,we made further major acquisitions,openings and transfers,all of which are unique in their own way.These include:the Depot,a new build in a
210、recently opened development in the regeneration area of Kidbrooke in south east London,and another in the list of pubs opened in partnership with Berkeley Homes;the White Bear,a freehold purchase in an exciting new territory for Youngs in the commuter hub of Tunbridge Wells;the New Inn(Ealing),capit
211、alising on a further growth opportunity from within our Ram Pub Company by transferring it to our managed division;and the Constitution(Camden)and Enderby House(Greenwich),both of which add to our future pipeline and offer great potential for the coming years.A common theme in all of these is their
212、superb location and future potential,both fundamental factors in our investment decisions.Strategic Report24Young&Co.s Brewery,P.L.C.|Annual Report 2020Business and financial review continued“Each year presents itself with fresh challenges as we look to continue our long-standing record of consisten
213、tly growing profits in our managed house division;this was no different.”Strategic ReportCorporate GovernanceFinancial StatementsShareholder Information25Young&Co.s Brewery,P.L.C.|Annual Report 2020 During the course of the year,including acquisitions,we invested 66.9 million in our managed estate a
214、cross a number of exciting schemes.After more than a year on-site at the Dog&Fox hotel,our new multi-use function suite,the Coach House,opened in January;an additional 11 bedrooms were completed later in March,bringing the total available hotel rooms to 28.Unfortunately,initial bookings have had to
215、be postponed,including what was expected to be its record-breaking Wimbledon tennis fortnight.Once able to re-open after the lockdown,the pub will be ready to capitalise on this investment,eager to show itself to our returning customers.Originally we had planned to invest in all of the Redcomb pubs
216、over a three-year period;however,we chose to accelerate this and therefore brought forward investment in nine of the pubs during this year,spending a total of 2.7 million.As part of this plan,we have refurbished the Theodore Bullfrog(Charing Cross),including its first floor trading space,undertaken
217、major schemes at the Bickley Arms(Chislehurst),Manor Arms(Streatham),Old Manor(Potters Bar)and the Worplesdon Place(Guildford),and have added two Burger Shacks.As the country ground to a halt in March,so did the contractors at the Green Man(Putney)where we were part way through transforming the pub,
218、creating additional internal dining covers to complement the expansive external trading area and garden.We will look to complete this project early in the new financial year once restrictions have been lifted.Alongside these,we have targeted investment in our core estate,with major projects undertak
219、en at the Adam&Eve(Fitzrovia),Duchess of Kent(Islington),Dukes Head(Wallington),Grove(Exmouth),Queen Adelaide(Wandsworth),Riverside(Vauxhall),Waterfront(Wandsworth)and the White Hart(Barnes).Ram Pub CompanyIt has been a tough year for the Ram Pub Company,following the highly successful period last y
220、ear with the good early summer weather and Englands football world cup success which helped drive barrelage growth.On a like-for-like basis,revenue fell by 4.1%.In total,revenue within the Ram Pub Company was down by 6.9%or 0.9 million,in part reflecting the net reduction in the number of pubs and t
221、he impact from reduced beer volumes at key periods of the year.As with our managed houses,all tenanted pubs were forced to close towards the end of March due to the coronavirus pandemic.Total adjusted operating profit was 4.2 million,a decrease of 0.8 million(post-IFRS 16 reported adjusted operating
222、 profit:4.3 million).This decline in profits is exaggerated somewhat due to an onerous lease adjustment of 0.3 million in the previous year.In April last year,we transferred the New Inn(Ealing)to our managed house division to maximise its potential further.Other transfer opportunities do exist withi
223、n the Ram Pub Company and we will look to harvest these when the time is right for both us and our tenants.Midway through the financial period we opened the Ram Inn(Wandsworth)on the corner of the old Ram Brewery site.This iconic pub,restored back to its former glory,features a traditional bar openi
224、ng out onto the bustling high street and,on the first floor,an indoor garden equipped with two shuffle-board lanes.We also sold the Bristol Ram,a pub at the tail of the estate,for proceeds of 0.9 million.As a result of the above movements,the Ram Pub Company ended the year with 69 pubs,down from 70
225、in the previous year.Within our existing estate,we follow a structured and viable investment programme to ensure that each tenanted pub is maintained at an attractive standard to appeal to customers,current tenants and future business partners.In the past year,we have completed major developments at
226、 the Grapes(Wandsworth),Railway Telegraph(Thornton Heath),Rattlebone Inn(Sherston)and the Watermans Arms(Richmond).With the challenging end to the period resulting in closures across the estate in March,we were the first pub company to announce a three-month rent holiday for all our tenants,effectiv
227、e from 16 March 2020,as part of a support package to help them through this difficult period.For the majority of our tenants we have extended this for a further month,and we continue to monitor the ongoing situation.Other key areasPropertyOur balance sheet strength is underpinned by our predominatel
228、y freehold estate in many highly desirable locations.230 of our 276 pubs are freehold or are long-leaseholds with peppercorn rents.Our total estate is now valued at 771.1 million(2019:807.0 million)with a reduction in value of 56.4 million from last year following the adoption of IFRS 16,which has b
229、een reclassified to the right-of-use asset.We have continued to add value through acquisitions,primarily focussing on freehold assets,and major developments to improve our existing pub values.Each year we revalue our pub estate to reflect current market values.This year we have had to take into acco
230、unt the exceptional circumstances resulting in all our pubs being forced to close following the outbreak of the coronavirus pandemic.Savills,an independent and leading commercial property adviser,has revalued all our freehold properties,supported by Andrew Cox,MRICS,our Director of Property and Tena
231、ncies.The valuation method used a number of inputs of which the 66.8mManaged house investment771.1mEstate valueStrategic Report26Young&Co.s Brewery,P.L.C.|Annual Report 2020Business and financial review continuedthrough a combination of postponing all planned capital investment and furloughing the v
232、ast majority of our pub and support teams,combined with the business rates holiday announced by the government.Forward-looking cash conservation measures such as the cancellation of the final period dividend for the year ended and limiting our operating expenses,are inherent in our business modellin
233、g.We have strengthened both our short-term and long-term liquidity position.As regards the short-term,we have partially accessed the liquidity available to us under the HM Treasury and the Bank of Englands CCFF,issuing commercial paper with a nominal value of 30.0 million and a maturity date of 13 M
234、ay 2021.We have also entered into a new 20.0 million bilateral revolving credit facility with NatWest,we do not intend to draw on this facility but instead retain it as available liquidity to help us meet the liquidity test referred to below.This has a maturity date falling in May 2021 and we have t
235、he option early next year to request an extension of its maturity date by six months and can do the same again later next year.So far as the long-term is concerned,we have entered into a new 50.0 million syndicated facility with NatWest and HSBC split evenly between them.This has an original maturit
236、y date falling in May 2025;we have the option next year to request an extension of the maturity date by a further year and can do the same the following year.We have drawn down on this facility and repaid in full the March 2021 50.0 million syndicated facility with the RBS and Barclays.All our lendi
237、ng banks were supportive of us accessing additional liquidity and strengthening our balance sheet further.In addition,they have waived any technical cessation of business breach of our banking facilities as a result of our pubs being closed due to the coronavirus pandemic,and our financial covenant
238、tests at June,September and December this year and at March next year have now been replaced with an additional monthly liquidity test requiring us to retain available liquidity of 20.0 million through to and including June 2021.Given the uncertainty over both the timing of the governments lifting o
239、f pub closures and the extent of restrictions on the groups ability to trade,including social distancing measures,the compliance with banking covenants beyond 12 months from these financial statements is a material uncertainty.The group remains in regular dialogue with its lending banks and,should s
240、uch a scenario arise,the group would expect to discuss potential remedies with its banks,including an extension of the covenant changes agreed already,well in advance of June 2021.Equally,under the more severe scenario where pubs remain closed for longer or initial trade is weaker,we may need furthe
241、r access to the CCFF.The Bank of Englands standard terms for the CCFF state that the Bank reserves the right,at its sole discretion,not to provide further funds under the CCFF.This could represent a material uncertainty that may cast doubt about the groups ability to continue as a going concern.Howe
242、ver,HM Treasury and the Bank of England have publicly committed to keeping the CCFF open until at least March 2021.On this basis,the board of directors believe that liquidity under the CCFF would be available to the group should it be required(see note 1).sustainable level of trade of each pub was k
243、ey.It incorporates the impact of coronavirus through discounting pre-coronavirus property values by between 0%and 10%,which contains material uncertainty given the lack of comparable transactional activity since the onset of coronavirus and the uncertainty over future trade at the valuation date.In
244、accordance with International Financial Reporting Standards,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 downwards)and individual falls in value below depreciated cost have been accounted
245、 for through the income statement.None of these adjustments has a cash impact.Prior to the outbreak of the coronavirus,the pub property market in London and the surrounding areas had remained strong.However,the market uncertainty arising from estate-wide closures and the significant impact on our tr
246、ading levels and achieved profit resulted in a net downward revaluation movement of 14.6 million(2019:25.2 million upward movement).This is comprised of a downward movement of 9.3 million(2019:25.3 million upward movement)reflected in the revaluation reserve and a downward movement of 5.3 million(20
247、19:0.1 million downward movement)recognised as an adjusting item in the income statement.TreasuryDuring the year we remained highly cash generative.Our operating cash flow was 64.7 million(post-IFRS 16 reported operating cash flow:72.5 million)compared with 69.2 million in 2019,with our premium busi
248、ness and predominantly freehold estate performing strongly.Total net debt has increased by 35.1 million to 198.7 million(post-IFRS 16 reported net debt:280.4 million)as a result of significantly reduced trading in March and the investments made during the year,especially the purchase of six pubs,fal
249、ling in the last quarter.This resulted in an increase in our net debt to adjusted EBITDA ratio,to 2.8 times(2019:2.2 times),and in our gearing to 33.6%on a pre-IFRS 16 basis(2019:27.6%).Going concernWe have prepared our 2020 financial statements on a going concern basis for the reasons set out below
250、.With the groups strong balance sheet,supplemented by the actions below,the board of directors is confident that Youngs has sufficient liquidity to handle a prolonged period of closure of its pubs.As mentioned previously,it is not possible to predict the extent of the damage that the coronavirus wil
251、l have on our business going forward.We have modelled a broad range of scenarios,with our base model assuming our pubs will not re-open before August and the business experiencing significant disruption throughout the remainder of the financial year.Considering the impact that coronavirus may have o
252、n the business,we have moved forward on a number of areas,all underpinning the basis of our business modelling.The rate at which we use cash has been reduced significantly,achieved Strategic ReportCorporate GovernanceFinancial StatementsShareholder Information27Young&Co.s Brewery,P.L.C.|Annual Repor
253、t 2020As a result of the above,we have in place 285.0 million of funds and committed facilities from our lending banks,private placement lenders and under the CCFF.Our accessible liquidity is,however,effectively limited to 265.0 million.In addition to this,we have a 10.0 million overdraft with HSBC.
254、Retirement benefitsWe have a defined benefit pension scheme which has been closed to new entrants since 2003.During the course of the year our pension deficit has decreased by 0.4 million to 8.2 million.Compared with last year,the rate of inflation has decreased considerably from 3.3%to 2.8%which ha
255、s heavily contributed to a decrease in total actuarial assumption of 9.3 million.However,this has been offset by a 10.0 million reduction in the return on schemes assets.We have continued our commitment with another year of special contributions,totalling 1.2 million,and remain fully committed to en
256、suring the pension scheme is adequately funded.Adjusting itemsExcluding the 5.3 million net decrease in the property valuation of our estate,as mentioned previously,the majority of the 3.3 million adjusting items expenditure relates to property and investment activity following the acquisitions made
257、 in the period.Direct acquisition costs associated with business combinations of 1.0 million have dropped slightly this year(2019:1.2 million),largely due to the higher cost associated with the Redcomb purchase last period.Early lease termination costs were agreed at the point of completion with the
258、 tenants of the White Bear(Tunbridge Wells)and the Constitution(Camden)in order to capitalise on the opportunity these pubs present within our managed estate.There were additional compensation costs to terminate the lease agreements early at the New Inn(Ealing)which transferred from the Ram Pub Comp
259、any last April,and an unlicensed property which could form part of a potential exciting new head office development at the rear of the Spread Eagle(Wandsworth).In total,tenant compensation cost in the year of 1.7 million has been included within adjusting items and expensed under IFRS.The remaining
260、0.6 million of adjusting items relates to the loss on disposal of properties during the period.We exited two tied leases forming part of the managed business,the Builders Arms(Chelsea),a pub with Enterprise Inns,and the Alphabet(Islington),a pub leased from Star Pubs&Bars,and we sold the Bristol Ram
261、 from the Ram Pub Company.TaxOur corporation tax charge for the year was 9.8 million,with an increase in our effective tax rate of 3.1%pts to 21.8%.This included 1.6 million relating to the re-measurement of our deferred tax liabilities as a result of the increase in the future substantively enacted
262、 tax rates from 17.0%to 19.0%.The groups tax strategy has been published on the Youngs website in accordance with recent UK tax law.IFRS 16 The 2020 results have been reported under IFRS 16.The 2019 comparatives have not been restated,as permitted by the accounting standard;for comparative purposes
263、only,we have presented and commented on the 2020 results on a non-statutory illustrative basis to exclude the impact of IFRS 16.There was no impact on revenue.Under IFRS 16,removing the rental charge from the income statement results in an increase to EBITDA.Therefore,reported group adjusted EBITDA
264、at 79.6 million would have been 7.8 million higher than the illustrative pre-IFRS 16 71.8 million.An additional depreciation charge of 6.1 million,largely driven by the right-of-use assets,results in a net increase to our reported adjusted operating profit of 1.7 million compared with pre-IFRS 16 il
265、lustrative adjusted operating profit of 44.8 million.With a further 2.5 million interest charge under IFRS 16 in this year,our illustrative adjusted profit before tax of 38.5 million was 0.8 million higher than our reported adjusted profit before tax of 37.7 million.The adoption of IFRS 16 has had t
266、he greatest impact on our managed houses division.Excluding this,the managed adjusted operating profit was 58.4 million,1.5 million lower than reported profit.The remaining 0.2 million was equally split between unallocated and the Ram Pub Company.Net assets increased by 0.4 million on adoption of IF
267、RS 16.For further details on the balance sheet impact see note 2.At the year-end,our debt level has risen by 116.8 million to 280.4 million largely due to the introduction of 81.7 million of lease liabilities onto the balance sheet.As a result,net debt to EBITDA increased to 3.5 times(2019:2.2 times
268、)and gearing increased to 47.5%.Shareholder returnsHaving started life in 1831,Youngs is a long-standing business and we are determined to maintain our long-term,sustainable growth story.We continue to deliver strong performances from our existing estate and our hand-picked developments,focussing on
269、 both immediate and maintainable gains.Following the outbreak of the coronavirus and with our pubs being closed,the focus of the business has been to prioritise cash conservation.The board has therefore concluded that it is not appropriate to recommend payment of a final dividend for the most recent
270、 period.Further,in view of the ongoing closure of our pubs,the expected lower levels of trade when they re-open and the terms of the new 20.0 million facility with NatWest,the Company will not be paying an interim dividend for the current financial year ending 29 March 2021.The board is very mindful
271、 of the importance of dividends to Youngs shareholders and intends resuming dividend payments as soon as is practicable,but no decisions have been made about when that will be.Our adjusted earnings per share now stand at 62.22 pence per share,down 13.7%(post-IFRS 16 reported adjusted earnings per sh
272、are:60.18 pence).On an unadjusted basis,earnings per share dropped to 39.37 pence.Patrick DardisChief Executive3 June 2020Strategic Report28Young&Co.s Brewery,P.L.C.|Annual Report 2020Business and financial review continued CustomersWhy?The companys biggest source of revenue from contracts with cust
273、omers is from its managed houses(95.8%of total company revenue),with this being derived from sales of drink(65.6%of managed house revenue),food(29.5%),room hire(0.2%)and the provision of accommodation(4.7%)lower revenue could lead to lower profits.A consumers decision to spend their money can be aff
274、ected by a broad range of matters,all set against a background of an ever-increasing choice of where to go and what to do.See also principal risk/uncertainty 3 on page 16.How?See the Engagement with suppliers,customers and others in a business relationship with the company section within the directo
275、rs report,starting on page 59.Outcomes and actionsSee the Engagement with suppliers,customers and others in a business relationship with the company section within the directors report,starting on page 59.Our peopleWhy?The commitment,skills and experience of the people employed throughout the organi
276、sation(whether they are in the companys pubs and hotels or at Riverside House)are integral to the companys long-term success amongst other things,all of them have a part to play in helping to continue to grow,and/or support,the companys business and in demonstrating the companys values on a daily ba
277、sis.They are a most prized asset and staff retention is therefore crucial.In turn,it is important that the company is an employer of choice,provides an environment in which people are happy to work,supports the physical and mental well-being of its staff,and gives individuals the opportunity to deve
278、lop.See also principal risk/uncertainty 10 on page 18.How?See the Employees section within the directors report,starting on page 55.Outcomes and actionsSee the Employees section within the directors report,starting on page 55.The following describes how the directors have had regard to the matters s
279、et out in section 172(1)(a)to(f)of the Companies Act 2006 when acting in the way they considered,in good faith,would be most likely to promote the success of the company for the benefit of its members as a whole.In line with guidance issued by the Financial Reporting Council,this statement concentra
280、tes on matters that are of strategic importance to the company.Where appropriate and to avoid duplication,the statement cross-refers to other sections within the annual report.It goes without saying that the coronavirus outbreak,the Government order that all pubs in the UK be closed and the eventual
281、 lockdown of the UK were all matters of great concern to the directors an overview of the various actions and steps they took as a result is contained elsewhere in the annual report outside of this statement.This statement therefore almost exclusively concentrates on non-coronavirus related events a
282、nd matters.Principal stakeholder groupsThe directors regard those listed below as the companys principal stakeholder groups.Set out in relation to each such group is:Why the directors believed it was important to engage with that group(the Why?)The main methods the directors used to so engage and un
283、derstand the issues to which they had to have regard(including those used by management)(the How?)Information on the effect of that regard on the companys decisions and strategies during the period(the Outcomes and actions)Customers Our people Suppliers Investors/lenders Trustees of the final salary
284、 pension scheme Ram Pub Company TenantsStrategic ReportCorporate GovernanceFinancial StatementsShareholder Information29Young&Co.s Brewery,P.L.C.|Annual Report 2020Section 172(1)statement SuppliersWhy?The business relies,in the main,on a small number of suppliers to provide the companys pubs and hot
285、els with food and drink.The range,availability and quality of the products sourced is fundamental to the companys reputation.To remain as a provider of a market-leading,competitive premium offering that new and existing customers would want to enjoy,it is important that the company partners with,and
286、 has good,strong and mutually beneficial business relationships with,the right suppliers.80%of the companys spend is with 6%of its suppliers.See also principal risks/uncertainties 4 and 8 on pages 17 and 18.How?See the Engagement with suppliers,customers and others in a business relationship with th
287、e company section within the directors report,starting on page 59.Outcomes and actionsSee the Engagement with suppliers,customers and others in a business relationship with the company section within the directors report,starting on page 59.Investors/lendersWhy?Continued access to capital is of vita
288、l importance to the long-term success of the companys business.Via its engagement activities,the company strives to obtain investor/lender buy-in to the companys strategy(of how to grow the business)and the companys business model(setting out how value is created).The aim is to promote an investor/l
289、ender base that is interested in a long-term holding in/relationship with the company.See also principal risk/uncertainty 7 on page 17.How?See the Shareholder Relations section within the corporate governance report,on page 44,for information on the companys main methods of engagement with investors
290、.As regards the companys banks,the chief financial officer and,before him,the interim chief financial officer met regularly with them.Further,as required under the terms of the companys loan facilities,the companys lenders received quarterly covenant compliance certificates.Outcomes and actionsThe c
291、ompanys investors and lenders remained supportive of the companys strategy and business model.Aside from feedback on strategy and performance,the one specific matter raised by some investors was the disparity in the market price of the companys A shares vs.the companys non-voting shares no action wa
292、s taken on this as there has been a difference in the market price of these two share classes for many years.As regards the companys lenders,discussions between them and the company focussed on the companys material activities(including acquisitions and disposals)and its appetite to increase and/or
293、hedge its borrowings.Particular discussions also took place with The Royal Bank of Scotland plc(“RBS”)and HSBC UK Bank plc(“HSBC”)as regards a possible change in provider of the companys 10 million overdraft facility these resulted in HSBC providing that facility in place of RBS.Trustees of the fina
294、l salary pension schemeWhy?The company operates a defined benefit pension scheme covering benefits payable to various current and former employees;the scheme was closed to new entrants in February 2003.The scheme is a key company financial commitment as it needs to be funded to meet agreed benefit p
295、ayments and regulatory pension funding requirements.The schemes trustee is Youngs Pension Trustees Ltd,a corporate trustee.The company recognises that the trustee and the company each has a vital role to play in the proper running of the scheme and that regular,clear and open communication and,where
296、 necessary,consultation is important in helping maintain a good working relationship between the company and the trustee.The company is party to all scheme deeds,undertaking responsibilities under the schemes trust deed and rules together with pension legislation and regulation,as required.See also
297、principal risk/uncertainty 6 on page 17.How?During the period,the chief financial officer and,before him,the interim chief financial officer worked closely with the schemes trustee.The chief financial officer attended meetings with the trustee and delivered presentations on the companys business,thu
298、s keeping the trustee informed of the companys financial position and of any plans that would change or impact upon the employer covenant supporting the scheme.In addition,the chief financial officer was invited to join scheme investment discussions.The chairman of the trustee is a director of the c
299、ompany and gave presentations to the companys board on various aspects of the scheme.Strategic Report30Young&Co.s Brewery,P.L.C.|Annual Report 2020Section 172(1)statement continuedOutcomes and actions A key discussion topic with the tenants was the sustainability of their businesses some of these di
300、scussions resulted in a reduction in the rent payable by the tenants.In other instances,the decision was taken to exit from the pub:this resulted in the sale of the Bristol Ram(Bristol),the exercise of a break clause in the companys lease of the Black Cat(Catford)and the non-renewal of the expiring
301、lease of the Greyhound(Hendon).As a result of feedback and input received from various tenants,the following also occurred during the period:changes were made to the drink portfolios available in some of the pubs,drink delivery windows for some of the pubs were rescheduled so as to accommodate bette
302、r the needs of the tenant,previously unplanned refurbishment projects took place,changes were made to the scope and timing of certain pre-agreed refurbishment projects and an updated website was launched providing tenants with increased functionality and a better and more-engaging experience.In most
303、 instances,a portion of the companys capital outlay on the refurbishment projects undertaken resulted in an increased rental payment from the tenant.Principal decisionsFor the purposes of this statement,the directors regard their principal decisions as not only those that are material to the group,b
304、ut also those that are significant to any of the companys principal stakeholder groups see above.Subject to the qualification appearing at the start of this statement as regards the coronavirus and its implications,set out below are the principal decisions made by the directors during the period.Imp
305、licit in making these was the desirability to maintain a reputation for high standards of business conduct and the need to act fairly as between members of the company.Consequences of the coronavirusAn overview of the various actions and steps taken by the company in light of the coronavirus and the
306、 Governments decision to order the closure of all pubs in the UK is set out elsewhere in the annual report.Payment of a final dividend in respect of FY2018/19,payment of an interim dividend in respect of FY2019/20 and decision not to recommend payment of a final dividend in respect of FY2019/20Payin
307、g dividends is an important priority for the board:it helps demonstrate the companys continuing ability to create and deliver long-term value for its shareholders.The board was particularly proud that the company had been able to increase its final and interim dividend in each of the last 22 years t
308、his would have continued for FY2019/20 but for the impact of the coronavirus which has resulted in the closure of all the companys pubs and therefore the complete cessation of any trading income from them.The board has consequently decided to focus on prioritising cash conservation and therefore not
309、 to recommend the payment of a final dividend for the companys financial year ended on 30 March 2020.The company has a vision document through to and including FY2024/25 that states the companys current and future Outcomes and actionsDiscussions primarily focussed on funding,investment and employer
310、covenant considerations,ensuring an integrated approach to risk management.Strategic scheme initiatives,such as the approach to liability management and minimising volatility,were discussed-these saw the trustee continuing with a carefully managed strategy to reduce liabilities and underlying scheme
311、 risk,all against the background of the schemes continuing maturity.The company was consulted on a revised statement of investment principles(reflecting,in part,new regulations on environmental,social and governance matters),which led to an updated statement being signed,and it was regularly updated
312、 on scheme funding,membership changes and other key details.Other legislative developments,such as the action to be taken as a result of the need for GMP equalisation(see note 26 on page 108),were progressed.In light of the coronavirus outbreak,the trustee withdrew its request for a discretionary in
313、crease,for the year starting 1 April 2020,on non-GMP pensions accrued before 6 April 1997.Overall,as a result of the companys engagement and proactive appropriate stewardship of the trustee,stable contributions continued to be paid to the scheme(as has been the case for many years)and the company be
314、nefited from funding savings resulting from liability management initiatives.Ram Pub Company TenantsWhy?The Ram Pub Company is the companys second biggest source of revenue after the companys managed houses(3.9%of total company revenue).It consists of pubs owned or leased by the company that are lea
315、sed or sub-leased to third parties.Revenue is derived from rents payable by,and sales of drink made to,the tenants lower revenue could lead to lower profits.Albeit the tenants run the pubs for their own account,they are nevertheless associated with Youngs their operations therefore reflect on the Yo
316、ungs name and reputation.The Ram Pub Company helps increase the companys buying power with suppliers,is cash generative and allows the company to acquire freehold pubs with tenants in situ pending their transfer to the managed estate when the time is right for the tenant to leave and for the company
317、 to take over.How?During the period,the main method of engagement with the tenants(as a body)was through the Annual Round-Up,a yearly forum led by the company which enables the company and its tenants to share views and best practice.On an individual basis,the main method of engagement with the tena
318、nts was through periodic business reviews.Outside of this,the company maintained a regular and ongoing dialogue with its tenants.Strategic ReportCorporate GovernanceFinancial StatementsShareholder Information31Young&Co.s Brewery,P.L.C.|Annual Report 2020objectives and serves as a guide for actions t
319、aken now and in the future.That document,which will be reviewed in light of the coronavirus outbreak,indicated that the groups approach to dividend payments was able to be met alongside the company meeting its obligations to its lenders,pensioners and staff as well as making the investments needed t
320、o continue to grow the business.Following a board recommendation and shareholder approval of the same at the companys AGM,a final dividend of 10.81p per share was paid to shareholders in July(at a total cost of 5.3 million)this was followed,in December,by payment of an interim dividend of 10.57p per
321、 share(at a further total cost of 5.2 million).These payments were anticipated in the revenue and capital budget for FY2019/20 approved by the board in March 2019 and were in line with the FY2024/25 vision document.Funds to pay these dividends were from the groups free cash flow;the final dividend w
322、as covered 3.5x by adjusted earnings per share.Approval of capital and revenue budget for FY2020/21The revenue and capital budget for FY2020/21 was approved by the board in March this was done prior to the Government ordering all pubs in the UK to close as part of a package of measures designed to a
323、ssist in the fight against the spread of the coronavirus and the UK being put into lockdown.In approving the budget,the board acknowledged that the business was in uncertain times and that the budget would be impacted by,amongst other things,a significant reduction in consumer spend and the actions
324、being,and to be,taken by the company in light of the coronavirus.Subject to that and the overriding need to ensure that the company weathers the situation,but in the expectation that business will eventually return to normal,the board believed that the companys premium offering would remain attracti
325、ve to existing customers and act as a draw to new ones,the companys business model would allow the company to continue to invest in its people and pay them appropriately and that capital would continue to be available to enable hand-picked complementary acquisitions to be made.The companys plans,und
326、erpinned by the budget,are demanding but will position the company well against its longer term value creation vision whilst honouring its commitments to its stakeholders.Appointments of Mike Owen and Simon Dodd and continuation in office of Stephen Goodyear and Nick MillerIn September,Mike Owen and
327、 Simon Dodd joined the board:the former as chief financial officer,the latter as chief operating officer.Due to the individuals calibre,knowledge and experience,these appointments were made with an eye on the long term and they provided additional full-time leadership benefitting not just their dire
328、ct reports and teams but a much wider section of the companys people due to their influence and involvement in the business.In January,the board agreed to extend the terms of office of both Stephen Goodyear and Nick Miller through to April 2023.In deciding to do this,the board determined that they w
329、ere independent in character and judgement,made an effective and valuable contribution to the board,demonstrated commitment to their roles(in Stephen Goodyears case,as non-executive chairman and as a member of the audit committee,and,in Nick Millers case,as a non-executive director,chairman of the r
330、emuneration committee and as a member of the audit committee),and were able to give sufficient time to Youngs.As a result,the board felt that it was well-balanced and had an appropriate number of members,with the right experience,knowledge,standards,skills and personal qualities and capabilities,for
331、 the company,its reputation and long-term strategy.Acquisitions of new managed housesDuring the period,the company acquired the following pubs as part of the companys managed house estate:the Canbury Arms(Kingston)(freehold),Constitution(Camden)(freehold),Crown(Twickenham)(freehold),Grantley Arms(Wo
332、nersh)(freehold),Onslow Arms(West Clandon)(leasehold),Wheatsheaf(Esher)(leasehold)and the White Bear(Tunbridge Wells)(freehold).Details of the consideration paid and the associated costs incurred are set out in note 13 starting on page 93.The acquisitions were made to support the companys value-crea
333、tion acquisition strategy:right opportunities in existing or exciting new locations where the board believes the companys premium offering will flourish.The purchases were financed through the companys existing bank facilities.Disposal of the Bristol Ram(Bristol),exit from the Black Cat(Catford)and non-renewal of the lease of the Greyhound(Hendon)During the period,the company sold the Bristol Ram(
0731-84720580
sgpjbg002
工作日 9:30 - 18:00
研報
新質生產力
DeepSeek?
低空經濟
大模型
AI Agent
AI Infra
具身智能
自動駕駛
寵物
銀發經濟
人形機器人
企業出海
算力
微短劇
薪酬
白皮書
創新藥
人工智能
AI產業
信息科技
互聯網
消費經濟
汽車交通
電商零售
傳媒娛樂
醫藥健康
投資金融
能源環境
地產建筑
傳統產業
英文報告
其它
最新報告
中英對照
全文搜索
報告精選
PDF上傳翻譯
多格式文檔互轉
入駐&報告售賣
會員權益
機構報告
券商研報
財報庫
專題合集
英文報告
數據圖表
會議報告
其他資源
行業聚焦
芯片產業
熱點概念
全球咨詢智庫
人工智能
500強
新質生產力
會議峰會
新能源汽車
企業年報
互聯網
公司研究
行業綜觀
消費教育
科技通信
醫藥健康
人力資源
投資金融
汽車產業
物流地產
電子商務
傳統產業
傳媒營銷
其它
2025低空經濟/低空產業報告合集（共49套打包）
2025年智算中心/AIDC/AI數據中心研究報告合集（共37套打包）
AI、科技與通信
廣告、傳媒與營銷
消費、零售與支付
HR、文化與旅游
金融、保險與投資
能源、環境與工業
醫療制藥與大健康
物流、地產與建筑
其他行業
AI ? 科技 ? 通信
數字化
金融財經
智能制造
電商傳媒
地產建筑
醫療醫學
能源化工
其他行業
收藏
下載
2025-05-20
AI查數
行業數據
政策法規
商業模式
產業鏈
競爭格局
市場規模
產業概述
其它
2025年
AI讀財報
年報
一季報
半年報
三季報
IPO招股書
社會責任報告
A股
IPO申報
港股
美股&全球
新三板
掃碼登錄
手機快捷登錄
賬號登錄
