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.
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"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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