Young & Co's Brewery has said that it expects its 2021 full-year performance to be materially below average after it posted lower annual pre-tax profit due to coronavirus-led closures, and that its pubs may reopen by August 3.
The company, which owns more than 200 pubs in London and Southern England, said that pre0tax profit slumped 24.3% to £29.9 million for the year ended March 30.
Young's, which traces its roots back to 1831 as a brewery and pub company, said that it expects sales to return to more normalised levels in fiscal year 2022.
"Closure of our pubs for the final 10 days of the financial year and the preceding downturn in trade resulted in an estimated £13.0 million shortfall in revenue," the company said. The pub operator estimated the impact on annual profit to be £7.7 million.
Last month, the company's creditors replaced its financial covenant tests with an additional monthly £20 million available liquidity test until June next year.
It also secured extra funding, furloughed over 4,500 staff, cancelled its interim dividend and now has in place £285 million of funds and committed facilities.
70% Of Normal Levels
The management believes that its pubs can operate at approximately 70% of normal levels, but likely with some more conservative phasing in the initial few months, assuming social-distancing measures of one metre, Mark Irvine-Fortescue, an analyst with UK brokerage Stifel said.
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