Young’s delivers record half-year and turns to buybacks: what it means for investors
Young & Co.’s Brewery has poured a strong pint of numbers for the 26 weeks to 29 September 2025 and added a frothy £10 million share buyback on top. A premium, well-invested estate, a sunny spring, and Wimbledon crowds did the heavy lifting. Costs still bit, but smart execution and City Pub Group synergies kept margins edging up.
Headline numbers at a glance
| Metric | H1 2025 | YoY change |
|---|---|---|
| Revenue | £263.6 million | +5.4% |
| Like-for-like sales | +5.7% | – |
| Adjusted EBITDA | £62.5 million | +5.9% |
| Adjusted operating profit | £40.7 million | +6.8% |
| Adjusted profit before tax | £31.1 million | +9.9% |
| Adjusted operating margin | 15.4% | +0.2 ppts |
| Reported profit before tax | £30.6 million | +20.9% |
| Basic EPS | 34.95p | +8.5% |
| Interim dividend | 12.22p | +6.0% |
| Net debt (pre-IFRS 16) | £221.8 million | -£26.5m vs Mar-25 |
| Net debt to EBITDA (pre-IFRS 16) | 2.0x | from 2.4x (Mar-25) |
| Net assets per share | £12.71 | +0.3% |
Buyback and dividend: two-pronged capital return
The board has authorised a share buyback of up to £10 million, focused on the non-voting class. Details will follow, but the signal is clear: management sees value in the shares and has room within its leverage framework to return capital.
The interim dividend rises 6.0% to 12.22p per share, expected to be paid on 5 December 2025 to holders on 21 November 2025. Combined with the buyback, that is a confident nod to cash generation.
What drove the record performance
Strong like-for-like growth and summer tailwinds
Like-for-like sales grew 5.7%, comfortably ahead of the sector tracker at 2.7%. The estate’s riverside gardens and roof terraces were made for a warm spring and early summer, and Young’s had its biggest-ever Wimbledon fortnight. Drink sales rose 6.5% in total, helped by well-executed summer cocktails and cask ale events.
Food, rooms, and the City Pub uplift
- Food sales increased 3.8% despite food inflation running at 7.2% across the period.
- Accommodation revenue rose 4.0%, with RevPAR up £3.91 to £92.40 and an average room rate higher by £5.13.
- City Pub Group integration is now delivering: drink margins are up just under 2 percentage points and food margins up just under 7 percentage points across the acquired estate.
Margins holding despite cost pressures
Adjusted operating margin edged up to 15.4% from 15.2%. That is impressive given employment cost increases (National Living Wage and National Insurance) and higher food costs, which together added just over £4.7 million in the half. Operational improvements and the synergy gains from City Pub Group helped to offset the squeeze.
There were also some external bumps. A week-long London tube strike in September dented trade, and the prior year benefited from EURO24 football. Even so, adjusted profit before tax rose 9.9% to £31.1 million, with reported PBT up 20.9% to £30.6 million due to lower adjusting items.
Cash, debt and headroom: disciplined balance sheet
Net debt (pre-IFRS 16) fell to £221.8 million, down £26.5 million since year-end, reflecting strong trading, working-capital timing, and a second-half weighted capex plan. On a lease-adjusted basis, net debt is £308.5 million. Leverage improved to 2.0x net debt to adjusted EBITDA, or 2.6x including leases, inside the 2.0x–3.0x target range.
Debt headroom at the half year was £113.2 million. Total committed bank facilities move from £335.0 million to £315.0 million in November 2025 as a £20.0 million term loan matures and is replaced with additional RCF drawings. That still leaves ample liquidity to fund the buyback and planned investments.
Investment in the estate: spend today, returns tomorrow
Young’s invested £12.6 million in the first half, completing major schemes across both the core and City Pubs estates. Management expects around £25 million of capital investment in the second half, with several projects nearing completion. One non-core asset was sold for £0.6 million.
This capital cycle matters. The strategy is to keep the estate premium and differentiated, which underpins like-for-like momentum and pricing power. Management says returns are tracking to expected payback profiles – useful context when judging the balance between debt reduction and growth capex.
Current trading, Christmas and risks to watch
- Last 13 weeks: total sales up 4.4%, like-for-like up 4.2%.
- Christmas bookings: pre-booked sales are 22% ahead of last year – a strong indicator for H2.
- Macro and operational watch-outs: continuing employment cost pressure, the Government’s upcoming Budget impact on sentiment, food inflation, and the risk of further tube strikes in the key festive run-up.
My take: why this update matters
- Quality-led growth is working. Beating the sector on like-for-like sales while nudging margins higher signals competitive strength in premium locations.
- Capital returns are back. A 12.22p interim dividend and a £10 million buyback suggest confidence in cash generation and balance sheet capacity.
- Leverage trending down. 2.0x net debt to EBITDA gives flexibility to keep investing without stretching the balance sheet.
- Synergies now flowing. With City Pub Group integration largely complete and margins up across the acquired sites, H2 should see the full-year benefit.
On the flip side, cost inflation has not gone away, adding over £4.7 million in the half, and weather helped the period. The team will need to keep converting sales into profit as conditions normalise.
What to watch next
- Execution over the festive period – bookings are strong, but walk-in trade will decide the final tally.
- Pace of the buyback – size, duration and pricing of the non-voting share programme once details are published.
- H2 capex delivery – c.£25 million targeted with several big schemes; look for sustained like-for-like uplift post reopenings.
- Leverage discipline – management aims to stay within 2.0x–3.0x; ongoing debt reduction alongside buybacks will be a useful signal.
Jargon buster
- Like-for-like sales: growth from pubs that were open in both periods, stripping out openings, closures and acquisitions.
- Adjusted results: exclude one-off items to show underlying performance.
- IFRS 16: accounting standard that brings leases onto the balance sheet; “pre-IFRS 16” net debt excludes lease liabilities.
- RevPAR: revenue per available room – a standard rooms metric combining occupancy and rate.
Bottom line
Young’s has served up record interim numbers, improving leverage and a clear commitment to shareholder returns via dividend growth and a £10 million buyback. The estate looks in great shape, the City Pubs deal is earning its keep, and early H2 trading is positive. Keep an eye on costs and any transport disruption into Christmas, but the company’s premium positioning and investment discipline are doing the heavy lifting.
