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Brewing and pub company Young & Co.'s Brewery has reported that the closure of its pubs for the final 10 days of the financial year due to COVID-19 and the preceding downturn in trade resulted in an estimated £13m shortfall in revenue, with a disproportionate impact on profits, estimated to be £7.7m.
In its preliminary results for the 52 weeks ended 30 March 2020, the company announced that total group revenue was 'encouragingly' up 2.6% to £311.6m, supported by the acquisitions made in the previous year.
The brewer said managed house revenue rose 3% to £299.1m, supported by a 'significant contribution' from the Redcomb pubs following its acquisition of them in January last year.
But like-for-like sales ended the period down on the previous year by 2.4%, as it said that in December, trade was 'hampered' by the month-long rail strikes in London, and the first winter election since 1923.
Operating profit dropped by £8.4m to £36.2m and once adjusted for non-underlying items, operating profit was £44.8m, down by £3.7m, with an operating margin of 14.4%.
The brewer said its acquisition of five businesses in and around its south-west London heartland and the Surrey suburbs brought its period-end total pub count to 276, up from 269 in 2019.
Young & Co.'s also reported improved liquidity as a result of arranging £50m of additional funds and committed facilities and an agreement with its lending banks to replace existing covenant tests with a £20m available liquidity test through to and including the quarter end in June 2021.
The board of Young & Co.'s Brewery decided it was not appropriate to recommend payment of the final dividend.
Chief executive Patrick Dardis said: 'We are confident with the steps we have taken to safeguard our business from the immediate threat of coronavirus. The board expects the business to be in a position to return to profitable growth when this unprecedented period is at an end and conditions allow, and we remain confident in our proven strategy.'
At 8:37am: (LON:YNGA) Young Cos Brewery PLC share price was -30p at 1120p