Latest news with #SimonDodd
Daily Mail
13-07-2025
- Business
- Daily Mail
Pub rates misery blights summer, according to bosses
Pubs are struggling to turn a profit despite the sunny weather as Labour drags its heels on tax reform, bosses have said. Drinkers are flocking to beer gardens for a pint but industry leaders say business rates mean takings are being drained away – despite pledges by Labour to change the system. Chancellor Rachel Reeves has piled on further pain with a rise in employer national insurance contributions that took effect in April. An industry forecast last week showed that one pub could close every single day this year across Britain. Chris Jowsey, the chief executive of Admiral Taverns, said: 'On the face of it, pubs are doing really well because people are spending lots of money but none of it is translating to the bottom line. 'Rather than layering on cost after cost, if they're not careful they're going to make hospitality extremely uninvestable. It's really important that [Labour] do the rates reforms.' Simon Dodd, the boss of chain Young's, said: 'It has gone quite quiet on rates reform, which would help the whole sector. 'Labour came to power with this five-point plan for growth and the thing we would like sorted out is this. All we are asking for is a fair playing field.' He said his 230 pubs in London and the South East are 'really, really busy' thanks to the scorching weather. Dodd added: 'We have broken records, the sun has really helped. The great British pub is alive and kicking. 'That said, if you are an independent operator at the moment, it is very, very hard.' Simon Emeny, chief executive of Fuller's, said: 'An overhaul of our archaic business rates is long overdue, and the truth is that the whole system is not fit for purpose. It was created and introduced at a time when the digital economy was not even a pipe dream and for 14 years the Conservatives put it in the 'too difficult' box. 'We are still awaiting the full details regarding the changes made by the Labour Government at the last Budget – but if the Chancellor thinks this is 'job done', she is a long way off the mark.' Business rates are a local levy based on the value of a commercial property, meaning shops and pubs pay a premium compared to online giants such as Amazon. The hospitality industry was hit by a £500m increase in business rates in April alongside a barrage of other costs imposed by Labour. That included the NI hike and a sharp increase in the minimum wage. Before the Budget, small businesses had called for a Covid-era discount of 75 per cent to be extended to give them some breathing space. But Labour reduced this to a 40 per cent discount, capped at £110,000 per pub.
Daily Mail
09-07-2025
- Business
- Daily Mail
Young's lifted by summer sunshine as pub group's sales surpass Euro 2024
Young's is 'confident about the year ahead' after warm weather lifted the pub chain to solid sales growth since the spring. The Wandsworth-based company, whose pubs are focused on London and southeast England, revealed turnover increased by 6.6 per cent in the 14 weeks ending 8 July, and by 7 per cent on a like-for-like basis. It said 'long periods' of warm and sunny weather during the spring and summer had provided a boost, especially for its gardens and riverside pubs. Young's added that the performance was 'even more pleasing' as the comparative period last year coincided with the European football championships, when the UK pub sector enjoyed a much-needed uplift in trade. In its very strong annual results released last month, the firm credited the Euros and bumper Christmas trading for its like-for-like sales growing by 5.7 per cent. Total revenue jumped by around a quarter to £485.8million thanks to the £162million takeover of City Pub Group in March last year. This helped adjusted pre-tax profits at Young's rise by 4.5 per cent to £51.6million, although statutory profits fell by £2.6million to £18.1million, largely due to restructuring costs related to the City Pub Group acquisition. Simon Dodd, chief executive of Young's, said: 'We are delighted to be reporting excellent trading over the first quarter of the new financial year, particularly against such a strong comparator. 'Young's pubs are thriving, and our strategy of employing the very best teams, and maintaining a premium, well-invested and differentiated estate, continues to deliver industry-leading results. 'Our business is performing well, and we are confident about the year ahead.' Despite the company's optimistic outlook, Britain's pub sector is experiencing a very challenging period owing to cost-of-living pressures and measures announced in last Autumn's budget. In early April, employers' National Insurance contributions went up from 13.8 per cent on annual wages above £9,100 to 15 per cent on salaries exceeding £5,000. In addition, the National Living Wage increased by 6.7 per cent to £12.21 per hour and business rates relief was cut from 75 per cent to 40 per cent, up to a cap of £110,000 per firm. Many hospitality companies and trade bodies have warned that Chancellor Rachel Reeves' policies risk greater job losses and venue closures. More than 400 pubs closed for good across England and Wales in 2024, according to figures from property consultancy firm Altus Group. Analysts at Peel Hunt said: 'Young's is utilising its own staffing agency (the Ram Agency) and cost savings to limit price increases, while maintaining opening hours and service levels. 'We believe this strategy supports volumes and helps grow market share as others cut back. We expect further synergies— especially in food, wine, and operations—from the City Pub Group acquisition.' Young's shares were 0.4 per cent down at 951p on Wednesday afternoon, but have still risen by approximately 9 per cent this year.
Daily Mail
05-06-2025
- Business
- Daily Mail
Young's invests to beat headwinds - as boss vows no 'blanket' hikes in price of a pint
Young's will 'invest its way out of' headwinds currently facing the hospitality sector after a major acquisition helped rapidly accelerate growth last year, according to the pub group's boss. The FTSE 250-listed group saw total revenues soar by nearly a quarter to £485.8 million in the year to 31 March, largely thanks to the £162million takeover of City Pub Group late in 2023. Young's also invested £47million developing and refurbishing its 277 pub estate, helping to drive like-for-like sales 5.7 per cent higher, while slashing net debt by £19.5million to £248.3million. Boss Simon Dodd told This is Money: 'We're not acquiring at the moment - the [City pubs takeover] accelerated our growth by about five years. 'But with the National Insurance hike and other costs that are hitting our sector, we think we should invest our way out of it; invest in our people, invest in our pubs and invest in technology.' Young's, which typically invests £50million a year, has 'a number of exciting investments' currently being rolled-out, according to Dodd, including a click-and-collect service and a loyalty platform for its growing bedroom business. Dodd has previously criticised decisions made in last year's Autumn Budget, which will see the group's cost base grow by £11million a year. 'A tough macroeconomic environment for the industry seems to have been par for the course since I became CEO and Government changes coming into effect in April make life no easier,' he told shareholders. Synergies achieved from the City Pub Group takeover have helped address some of those issues, while Young's has been able to limit the need for price hikes by utilising its own staff agency in addition to other cost savings. Dodd had previously highlighted research that suggested Autumn Budget changes could result in the price of a pint rising by 20p. But he said on Wednesday the group would continue to avoid 'blanket' price hikes across its estate and maintain an annual increase of 2 to 2.5 per cent in total. Dodds added: 'We will do it on a pub-by-pub basis, some pubs won't see an increase and some pubs will charge a little bit more. 'We don't believe you can price your way out of this in terms of volume, we grew our drinks business by about 3.5 per cent in volume – we're one of the only pub companies to grow volumes. 'We have to take a cautious approach to both value and volume.' Young's 'scale and size' and 'more importantly' its strong presence in the South East of England are crucial factors in weathering the storm currently facing the sector, according to Dodd, with central London sales alone up 16 per cent on a like-for-like basis last year. He added: 'London continues to lead the way in terms of growth, West London was up 10 per cent and, our heartland, South West London, was up 6 per cent. 'London is definitely alive and kicking and is driving phenomenal growth for us as a business.' Asked how the Government could improve conditions for the sector, Dodd said: 'The one ask we will continue to ask from the Government is business rate reform. 'We bang on about it every year, but it hasn't happened yet, and that could be a real stimulus for the sector.'
Daily Mail
05-06-2025
- Business
- Daily Mail
Young's hikes shareholder payouts as profits after City Pub Group takeover
Young & Co's shareholders will enjoy a higher dividend this year after the acquisition of City Pub Group helped to drive bumper earnings growth last year. The pub group shrugged off 'a tough macroeconomic environment' for the sector as adjusted operating profits surged 24.6 per cent to £71.4milliion over the year to 31 March. Revenues rocketed 24.9 per cent overall to £485.8million and rose 5.7 per cent on a like-for-like basis, thanks to a balance of volume growth and price increases. Growth was achieved despite labour cost increases of around 10 per cent as a result of last year's Autumn Budget, as well as higher utility bills. But chief executive Simon Dodd said the pub and bar business was in 'excellent shape' and 'positioned well for difficult conditions'. Young's board has recommended a final dividend of 11.53p, giving a total dividend for the year of 23.06p, up 6 per cent, 'reflecting our strong profit performance and progressive dividend policy'. Dodd added: 'Young's continues to be a leader for like-for-like sales in our sector and everything within our control is going to plan.' Like-for-like managed house revenue for the last nine weeks was ahead of last year by 8 per cent, Young's said, 'giving the Board confidence for the year ahead.' The London-listed firm also said it had completed the integration of City Pub Group into the Young's estate after the £162million deal announced in November 2023. It said: 'Head office synergies realised, and food and drink margin benefits achieved in line with the acquisition plan.' Dodd added: 'A tough macroeconomic environment for the industry seems to have been par for the course since I became CEO and Government changes coming into effect in April make life no easier. 'However, we are in excellent shape, with our differentiated approach and premium business model positioning us well in difficult conditions.' He added: 'It's been a fast start to the new financial year, with the great weather throughout April and May meaning our beautiful pub gardens and riverside locations have been packed full of customers. 'Whilst we remain mindful of the headwinds facing consumers and the wider issues that our industry will encounter, we are confident our premium, well-invested, predominantly freehold pub estate will continue to deliver profitable growth.' In January, Dodd warned that the cost of a pint would increase by 20p after the Budget's increase in employer national insurance contributions. At the time, the pub chain said it planned to raise prices by up to 3.5 per cent after Rachel Reeves' tax raid on business. This added 20p to the cost of typical pint of beer in London – taking it to £6.50. The group enjoyed bumper sales over Christmas and New Year.
The Sun
02-05-2025
- Business
- The Sun
We own ‘Britain's cheapest PUB' flogging pints for just 7p for touching reason… and we don't lose ANY money doing it
A PUB is pulling pints for just 7p to celebrate a special day in this country's history. Staff at The Flying Duck in Ilkley, West Yorkshire are flogging ales for 1945 prices to commemorate the 80th anniversary of VE Day. 4 4 Thirsty revellers who make it to the bar before the first 80 pints of Wharfedale Brewery Gold will pay the paltry fee to celebrate the anniversary of the end of the Second World War. The average punter is set back £5 for the privilege, meaning customers will enjoy a 99% discount for the beverage. Delighted locals joked that "Wetherspoons will be quiet for a couple of hours". The pub's Facebook post reads: "Come join us on the 8th May where we will be celebrating VE Day's 80th anniversary. 80 pints for 80 years at 1945 prices." In 1945 the price of a pint of beer was roughly one shilling and three pennies, depending on the beer and the location, which is worth around 7p. Gerard Simpson, Operations Director at The Flying Duck and Wharfedale Brewery, said: "I just thought it would be nice to do something to celebrate 80 years. "We came up with 80 pints for 80 years at 80-year-old prices. It's the one beer [at that price] we'll be serving our Gold. "We're quite lucky because as well as The Flying Duck we also have a brewery, Wharfedale Brewery, which means we're in a position where we can buy our beer for its cost so it wouldn't have an impact as a chain pub would have. "We're a community pub, we like to raise money for local charities. "I think it's nice to be able to do something and celebrate it. "People can just drink away - once the 80 pints have gone they've gone." Locals Heartbroken as Auchenmalg's Only Pub, The Cock Inn, Closes Down Thrilled social media users commented on the post. One wrote: "Wow Spoons will be quiet for a couple of hours then." Why pubs are pushing up prices The latest figures come after the British Beer and Pub Association warned the average cost of a pint across the UK will rise from around £4.80 to £5.01. It said pubs are expecting to raise their average prices by 21p. Figures from the Office of National Statistics (ONS) found the cost of a pint of draught lager in pubs jumped almost 3% in the year to January 2025. Pubs say they have been forced to push up prices because of a series of cost increases announced in last October's Budget. They say the only way they can stay open is to pass the raised costs on to customers. Simon Dodd, chief executive of Young's, said the chain planned to increase its prices by between 2.5% and 3%. Wetherspoons also recently hiked the price of some of its drinks and meal deals by up to 30p. Meanwhile Heineken increased the price of its draught beer by an average of 2.97% for pubs in February. More than 400 pubs across England and Wales were demolished or converted for other uses last year, figures from Altus Group show. As a result, the number of pubs across the two countries fell below 39,000 for the first time. 4 4
