London pubs and beer group Youngs has revealed a 63.7 per cent fall in profits for the past financial year. The brewer posted profits of £4.2 million for the year ending 28th March, as the company fell victim to the recession . The fall in profits was the result of writedowns totalling £10.7 million on the value of 28 of its 221 pubs.
Chief Executive Stephen Goodyear revealed the company would be looking to improve some of the properties and sell others. Mr Goodyear also maintained that the capital remained the prime place for pub operators. Mr Goodyear cited rising wage and food bills, as well as higher taxes, as additional factors in the drop in profits, with the company’s pub grub food promotion declining in popularity in the second half of the year, though it continues to account for over a quarter of sales.
The last 13 weeks has seen Young’s sales drop by 1.3 per cent in its managed pubs, though this figure is fairly impressive relative to the industry average. Indeed, had it not been for the writedowns, the brewer would have enjoyed pre-tax profits of 3.1 per cent on last year.
London Beer Brewer Suffers Profit Slump
Thu, 28 May 2009
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