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Here we are on that Thursday of each month where the entire financial universe slows to nearly a crawl waiting for the US Federal Reserve to announce its next move. If we are just going to sit around and wait, why don’t we do it at the Albion or Three Lords and raise a pint to celebrate the 40.00 pence increase in Young & Company’s (LSE:YNGA) share price today. If we do it right, by the time the Fed makes yet another unsurprising announcement, we won’t even care. Besides, it will be a whole lot more fun to toast Young’s success. After all, they manage the Albion and Three Lords and 161 others and have 77 tenanted pubs.
Young’s share price rose 4% to 1050.00 after release of their H1 2013 results for the period ending 30 September. Their year-on-year numbers are impressive.
- Revenue up 8.0% (2012: £1 million; 2013: £108 million)
- Adjusted operating profit up 15.1% (2012: £16.2 million; 2013:£18.7 million)
- Adjusted pre-tax profit up 18.6% (2012: £13.4 million; 2013: £15.9 million)
Aside from all that went into managing the business to make these significant gains, just as with any other business, in Young’s case, it’s pretty clear ahead of time that it would be difficult at best to beat the same period last year during this six months. During this period in 2012, London’s pubs were packed. The population burgeoned and the pubs were packed whilst the city hosted the Olympics. Then they were packed again as Brits celebrated the Queen’s Jubilee. All preliminary guidance aside, those two occasions made last year a tough one to beat. But Young’s did it, and the performance was certainly bolstered by the successful opening of several new locations. Both managed and tenancy locations performed extremely well during the first half.
Whilst some cite the pleasant weather this past summer as a significant reason for Young’s success, CEO Stephen Goodyear put operating a prosperous business into perspective, saying that “Our well located premium pubs, many with riverside locations or attractive gardens, have allowed us to make the most of the warm summer. We have also benefited from the improvement in consumer sentiment in London and the south of England, where we are focused. What the past five years have shown however, is that we are capable of generating profitable growth come rain or shine, and even in a very tough economic climate.” That statement alone ought to have boosted Young’s share price.
Making the report even sweeter, the cherry on top of the tart was a 6.1% increase in the interim dividend. At 7.45 pence, this is 17th consecutive year of dividend growth.
Who cares what Ben Bernanke says today.
