Final Results

Young & Co's Brewery PLC
26 May 2005


26th May 2005


                           YOUNG & CO.'S BREWERY, P.L.C.

                               PRELIMINARY RESULTS
                         FOR THE 53 WEEKS TO 2 APRIL 2005


Financial highlights

• Turnover £119.5 million up 6.7%

• Operating profit before site review costs £13.5 million up 7.0%

• Operating profit £13.0 million up 3.2%

• Adjusted profit before tax £9.6 million* up 6.0%

• Profit on ordinary activities before tax £9.4 million up 6.2%

• Adjusted earnings per share 55.47p* up 10.7%

• Basic earnings per share 56.36p up 15.1%

• Dividend per share 23.65p up 5.1%

• Net assets per share £12.48 up 2.8%

* Adjusted to exclude non-operating exceptional items and site review costs


Operational highlights

  • The Beer Company has had an excellent year with over 168,000 barrels
    brewed, a level not seen since the early eighties;

  • Young's Bitter increased volume by 9.5% and is now the 4th largest cask
    ale in London and the 10th largest cask ale brand in the UK;

  • Key distribution gains with major customers such as Spirit, Mitchells &
    Butlers, Punch and Enterprise;

  • Good performance from managed pubs and inns with turnover up 7.0% and
    operating profit up 9.7%. The operating profit increase was helped by food
    sales up 14.5% and improved food margins;

  • £15.5 million invested over the year. This includes seven new freehold
    sites. Net debt has been reduced to £53 million;

  • 5 May announced proposals to transfer to AIM and merge two classes of
    voting shares. EGM to be held on 2 June 2005 to approve proposals.


John Young, Chairman, commented:

'Our principles of providing first class products and service have served us
well, with good progress made across the business in the year. Despite strong
comparatives of the previous summer, our retail estate has again increased both
sales and profits. We are pleased at the progress we are making on our strategy
of establishing Young's Bitter as a national brand.

'Looking ahead, we remain focused on our strategy and anticipate making progress
in the coming year, even though we expect conditions to be challenging.
Stalling consumer confidence and ever increasing margin pressures, from rising
staff and utility costs, never ending red tape and this year, the added costs
from new licensing laws and increases in business rates, are all challenges we
will have to face.  Accordingly, any sales and profit growth achieved this year
will be well earned.

'Nonetheless we are confident that our actions will provide long-term
sustainable growth for our shareholders.'


For further information, please contact:

Stephen Goodyear    Young & Co.'s Brewery, P.L.C.            020 8875 7000
Chief Executive
Peter Whitehead     Young & Co.'s Brewery, P.L.C.            020 8875 7000
Finance Director
James Longfield /   Hogarth Partnership                      020 7357 9477
Georgina Briscoe

Photographs are available from Hogarth on request.




                         YOUNG & CO.'S BREWERY, P.L.C.

                              PRELIMINARY RESULTS
                        FOR THE 53 WEEKS TO 2 APRIL 2005

Operational review

Quality and service are the essential ingredients to prosper in today's
competitive market place. Their importance is vital given the fragile nature of
consumer demand and ever-increasing regulatory and legislative burdens and their
associated costs.

It is therefore pleasing to report that our principles of providing first class
products and service have served us well once more. Turnover has increased by
6.7% to £120 million and reported profit before tax was up 6.2% at £9.4 million.
Adjusted profit before tax which excludes exceptional items relating to property
and the costs of the review of our Wandsworth operation was up 6.0% to £9.6
million. Adjusted earnings per share were up 10.7% at 55.47p. Once again this
increase was higher than the growth in adjusted profits as a result of share
repurchases made in the previous financial year.

The annual general meeting on 12 July 2005 will be asked to approve a final
dividend of 12.25p, making a total for the year of 23.65p, up 5.1%. The final
dividend is due to be paid on 14 July to shareholders on the register on 17
June.

Retail

Young's retail success in the year under review is we believe the result of
delighting our customers with stylish pubs, great service, quality food and
unique beers.

It proved to be a challenging year for our managed business competing with the
exceptional summer of 2003 and stricken with the seemingly endless additional
costs of regulation and legislative burdens. Nonetheless, turnover was up 7.0%
and operating profit by 9.7%. Like for like turnover and operating profit
improved by 2.0% and 5.7% respectively. The operating profit increase was helped
by food sales up 14.5% and food margins also improved on the back of
efficiencies from tighter supply chain management that have resulted from the
investment in, and successful roll out of, our internet food ordering solution.

The improvement in our operations has been supported by £8.8 million of capital
expenditure on the managed estate. High property prices have not prevented us
during the year from finding attractive opportunities to acquire freehold pubs,
with three new acquisitions, the White Hart in Sherfield-on-Loddon, the Penny
Black in Leatherhead and the Bell in Fetcham. These pubs fit perfectly into the
Young's model and are already trading above expectations. We sold our leasehold
interests in the Columbia Bar, Bill Bentley's in the Minories and Willy's Wine
Bar.

In addition we sold the Crown and Anchor in Chiswick and the King's Head in
Merton, two freeholds that were no longer providing adequate returns. We
continue to manage our estate to ensure an optimal balance and this has resulted
in the transfer of the Lamb at Hindon and Next Door in Oxford to tenancy.
Conversely the Duke's Head, a large riverside pub in Putney, was transferred
from tenanted to managed. Our managed estate at the year end comprised 109 pubs
compared with 112 last year.

Eight major developments were completed at the County Arms, Leather Bottle, Old
Ship, Dunstan House, Waverley, Bishop out of Residence, Duke of Wellington and
Finch's, Finsbury Square, which has been transformed into the Master Gunner, the
name of a popular pub that was lost as part of the Paternoster Square
redevelopment.

Service standards are a major part of our retail proposition and we have
recently rolled out a comprehensive interactive training programme. This
programme is designed to improve service quality but also ensures that staff
keep ahead of all the new legislation and regulation that affects our business.
Events and prizes, such as the Academy Reward Dinner, the Cellar and Beer
Quality competition and the Gardens competition, all help to develop the Young's
service culture and make our licensees feel they are part of the Young's family.

Profit in our inns division increased by 16.8%, the result of recent investment
but competition remains intense, with RevPAR (average room rate multiplied by
occupancy) up a fraction of one per cent at £37.73. Both occupancy and room
rates were little changed on last year.

In our tenanted estate, turnover was up by 4.8% and operating profit was up by
0.8%. Like for like operating profit improved by 2.9%. We invested £4.8 million
in our tenanted estate. Four pubs were acquired during the year, the Two Doves
in Bromley, the Bell in Broadway, the Unicorn in Somerton and the Lord Nelson in
Barnet. The Maltese Cat in Roehampton was sold and there was a net transfer of
one pub from management, resulting in a total of 99 pubs in our tenanted
division, four higher than last year.

Our traditional tenancies continue to attract experienced tenants to whom we are
able to offer support and investment to generate a sustainable long-term
business relationship. Last year saw the setting up of our first tenant liaison
panel, aimed at improving communication and fostering new business opportunities
in partnership with our licensees.

The Retail business has a total of 208 pubs and inns run under management and
tenancy, one more than last year. The freehold estate has increased by four to
164 over the year.

Beer Company

The Beer Company has had an excellent year with over 168,000 barrels brewed, a
level not seen since the early eighties. Young's Bitter, our flagship brand,
increased volume by 9.5% in a declining cask ale market. Young's Bitter is now
the fourth largest cask ale in London and the 10th largest cask ale brand in the
UK. This represents excellent progress in our strategy to establish Young's
Bitter as a national brand.

This growth in volume has been led by free trade and exports, which were up a
total of 6.7% on last year, but it is also encouraging to note that volumes
increased by 0.8% in our managed and tenanted pubs.

The multiple pub group channel has played a significant part with Young's Bitter
growing by 24.6% and there have been key distribution gains with major customers
such as Spirit Group, Mitchells & Butlers, Punch and Enterprise.

The take home market becomes more competitive each year, with volumes little
changed. In response, we relaunched Waggle Dance, our leading take home brand,
in November 2004 with a distinctive new label.  Special London Ale and Champion
Live Lager, both bottle conditioned products, are leading Young's drive to
penetrate the premium end of the take home market.

The wholesale channel produced a very good performance, with volume up by 33.3%
as a result of developing stronger partnerships with the major wholesalers, Beer
Seller and National Drinks Distributors, which gave Young's Bitter their
Champion status for a third year running.

Independent free trade is a central part of our business, with a diversified and
loyal customer base. The strength of our team ensures a steady flow of quality
new business, which has supported the volume increase of 6.7%.

Export volumes were up 5.5%. A listing for canned Special Bitter provided the
impetus for a 42.2% volume growth in our Scandinavian market. Young's market
share continues to grow in the United States with volumes up 1.5% despite a weak
dollar.

In excess of £1 million has been invested in supporting Young's Bitter.  In
September 2004, we launched our new campaign, 'This is a Ram's World',
comprising a heavyweight poster campaign within our London heartland.  This was
repeated in December and again at the start of the current year and was
supported with new-style point of sale.  Consumer reaction has been favourable
and among London's cask ale drinkers our brand awareness grew to 91%, the
highest ever for the brand.

Cockburn & Campbell

Wine's popularity in pubs continues to increase, exploited by Young's through a
wide, high-quality, on-trade focused product range backed up by comprehensive
training in product knowledge and service. As a consequence of this trend,
Cockburn & Campbell continued to see volume increases, with overall wine volumes
up by 12.6%. More than a hundred people working in our pubs hold an
industry-recognised wine qualification and more than half our pubs offer at
least 14 wines by the glass.

In the free trade, an expanded sales team had an excellent year, increasing wine
volumes by 22.9%. The pre-mixed spirits category continued its predictable
decline. Wine volumes in the tied trade were up 7.3%.

Investment and finance

Asset-backed sustainable dividend growth, our main financial objective, has once
again been achieved with a dividend increase for the year of 5.1% to 23.65p,
more than double the rate of inflation. Dividends have been increased for eight
successive years, providing a total increase of 30.7% over the past five years.

The adjusted earnings per share are stated before exceptional items in order to
illustrate the underlying performance of the business. The exceptional items
this year are made up of property related profits of £0.4 million and the £0.5
million costs incurred throughout the year in respect of the review of our
Wandsworth operation. Adjusted earnings per share increased by 10.7%, providing
a total increase over five years of 37.8%.

We have invested £15.5 million in our business in the year, mainly on our
existing retail estate and on seven new freehold pubs.  The combination of a
strong operating cash flow and proceeds from disposal of underperforming assets
has allowed this level of investment to be undertaken at the same time as
reducing net debt to £53 million.

Before the year end, we renewed and increased our unsecured revolving credit
facility on attractive terms. The new £25 million committed facility expires on
30 April 2010 and provides headroom for our future investment plans as and when
opportunities present themselves.

Our approach to interest rate management remains unchanged with 74% of our debt
fixed at the year end. Should interest rates rise by 1%, our interest costs will
increase by £0.1 million. Gearing finished the year at 37.0% and operating
profit before site review costs covers interest costs by 3.4 times.

Alternative Investment Market

On 5 May, we announced proposals for the unification of our two classes of
voting shares and, at the same time, a transfer to the Alternative Investment
Market. We believe that the greater liquidity offered by the enlarged class of
voting shares, together with the reduced regulatory regime and tax advantages of
AIM, will be of benefit to the company and shareholders alike. These proposals
are subject to shareholder approval at an extraordinary general meeting on 2
June 2005.

Ram Brewery development

We continue to make good progress on our review of the development potential of
the Ram Brewery site. As part of this review, discussions have been held over
recent months with a number of commercial developers in order to gain their
views of the site's potential and value. We are very grateful to Wandsworth
Council for their support and guidance in this complex process.

Outlook

We remain focused on our strategy and anticipate making progress in the coming
year, even though we expect conditions to be challenging.

Stalling consumer confidence and ever increasing margin pressures, from rising
staff and utility costs, never ending red tape and this year added costs from
new licensing laws and increases in the business rate, are all challenges we
will have to face. Accordingly, any sales and profit growth achieved this year
will be well earned.

Nonetheless we are confident that our actions will provide long-term sustainable
growth for our shareholders.



                         YOUNG & CO.'S BREWERY, P.L.C.

                      Unaudited profit and loss account
                      For the 53 weeks ended 2 April 2005

---------------------------------                         ---------    ---------
                                                             2005         2004
                                                             £000         £000
---------------------------------                         ---------    ---------
Turnover                                                  119,532      111,982
Net operating costs before site review costs             (106,009)     (99,343)
---------------------------------                         ---------    ---------
Operating profit before site review costs                  13,523       12,639
Site review costs                                            (485)           -
---------------------------------                         ---------    ---------
Operating profit                                           13,038       12,639
Non-operating exceptional items                               362         (129)
---------------------------------                         ---------    ---------
Profit on ordinary activities before interest              13,400       12,510
Net interest charge                                        (3,969)      (3,626)
---------------------------------                         ---------    ---------
Profit on ordinary activities before tax                    9,431        8,884
Tax on profit on ordinary activities                       (2,976)      (3,014)
---------------------------------                         ---------    ---------
Profit attributable to ordinary shareholders                6,455        5,870
Ordinary dividends on equity shares                        (2,730)      (2,660)
---------------------------------                         ---------    ---------
Retained profit for the financial period                    3,725        3,210
---------------------------------                         ---------    ---------

                                                            Pence        Pence
---------------------------------                         ---------    ---------
Basic earnings per 50p ordinary share                       56.36        48.95
---------------------------------                         ---------    ---------
Exceptional items                                           (0.89)        1.16
---------------------------------                         ---------    ---------
Adjusted earnings per 50p ordinary share                    55.47        50.11
---------------------------------                         ---------    ---------
Diluted basic earnings per 50p ordinary share               55.23        48.44
---------------------------------                         ---------    ---------

The above results are all in respect of continuing operations of the company.

There are no recognised gains and losses other than those shown above. The prior
year adjustment arising from the adoption of UITF 38 Accounting for ESOP Trusts
has had no impact on total recognised gains or losses.




                         YOUNG & CO.'S BREWERY, P.L.C.

                           Unaudited balance sheet
                                At 2 April 2005

---------------------------------                         ---------    ---------
                                                             2005     Restated
                                                             £000         2004
                                                                          £000
---------------------------------                         ---------    ---------
Fixed assets                                              212,413      209,057
Tangible fixed assets                                          42          197
Investments
---------------------------------                         ---------    ---------
                                                          212,455      209,254
---------------------------------                         ---------    ---------
Current assets and liabilities                              4,018        4,221
Stocks                                                      6,247        7,897
Debtors                                                     1,028        1,005
Cash
---------------------------------                         ---------    ---------
                                                           11,293       13,123
---------------------------------                         ---------    ---------
Creditors: amounts falling due within one year            (19,189)     (18,633)
---------------------------------                         ---------    ---------
Net current liabilities                                    (7,896)      (5,510)
---------------------------------                         ---------    ---------
Total assets less current liabilities                     204,559      203,744
Creditors: amounts falling due after more than one year   (53,806)     (57,011)
Provisions for liabilities and charges                     (7,470)      (7,484)
---------------------------------                         ---------    ---------
Net assets                                                143,283      139,249
Capital and reserves                                        6,028        6,028
Called-up share capital                                     1,319        1,341
Share premium account                                      87,139       88,094
Revaluation reserve                                         1,808        1,808
Capital redemption reserve                                 (3,267)      (3,188)
Investment in own shares                                   50,256       45,166
Profit and loss account
---------------------------------                         ---------    ---------
Equity shareholders' funds                                143,283      139,249
---------------------------------                         ---------    ---------

The 2004 figures have been restated for the effects of the adoption of UITF 38
Accounting for ESOP Trusts.




                         YOUNG & CO.'S BREWERY, P.L.C.

                        Unaudited cash flow statement
                      For the 53 weeks ended 2 April 2005

---------------------------------                        ---------     ---------
                                                            2005      Restated
                                                            £000          2004
                                                                          £000
---------------------------------                        ---------     ---------
Net cash inflow from operating activities                 24,705        20,915
---------------------------------                        ---------     ---------
Interest received                                             22            11
Interest paid                                             (4,340)       (3,561)
---------------------------------                        ---------     ---------
Returns on investments and servicing of finance           (4,318)       (3,550)
---------------------------------                        ---------     ---------
Corporation tax paid                                      (2,983)       (2,453)
---------------------------------                        ---------     ---------
Purchases of tangible fixed assets                       (15,526)      (12,539)
Sales of tangible fixed assets                             4,382         1,164
---------------------------------                        ---------     ---------
Capital expenditure                                      (11,144)      (11,375)
---------------------------------                        ---------     ---------
Equity dividends paid                                     (2,671)       (2,660)
---------------------------------                        ---------     ---------
Cash inflow before financing                               3,589           877
---------------------------------                        ---------     ---------
(Decrease)/increase in loan capital                       (3,183)        9,632
Repurchase of share capital                                    -        (5,728)
(Decrease) in lease finance                                  (15)          (14)
Employee benefit trust share redemptions                    (368)         (737)
---------------------------------                        ---------     ---------
Financing                                                 (3,566)        3,153
---------------------------------                        ---------     ---------
Increase in cash in period                                    23         4,030
---------------------------------                        ---------     ---------

The 2004 figures have been restated for the effects of the adoption of UITF 38
Accounting for ESOP Trusts.




                         YOUNG & CO.'S BREWERY, P.L.C.

       Unaudited reconciliation of net cash flow to movement in net debt
                      For the 53 weeks ended 2 April 2005

---------------------------------                        ---------     ---------
                                                            2005          2004
                                                            £000          £000
---------------------------------                        ---------     ---------
Increase in cash in period                                    23         4,030
Decrease/(increase) in debt in period                      3,198        (9,618)
---------------------------------                        ---------     ---------
Decrease/(increase) in net debt in period                  3,221        (5,588)
Opening net debt                                         (56,176)      (50,588)
---------------------------------                        ---------     ---------
Closing net debt                                         (52,955)      (56,176)
---------------------------------                        ---------     ---------





                         YOUNG & CO.'S BREWERY, P.L.C.

   Unaudited reconciliation of share capital and other shareholders' funds
                      For the 53 weeks ended 2 April 2005

---------------        --------        --------     ---------  ---------      --------        --------
                    Called-up           Share   Revaluation    Capital    Investment      Profit and
                        share         premium       reserve redemption        in own            loss      
                      capital                                  reserve        shares         account
                         £000            £000          £000       £000          £000            £000
---------------        --------        --------     ---------  ---------      --------        --------
At 2004 as
previously stated       6,028           1,341        88,094      1,808             -          44,805
Prior year
adjustment                  -               -             -          -        (3,188)            361
---------------        --------        --------     ---------  ---------      --------        --------
At 2004-restated        6,028           1,341        88,094      1,808        (3,188)         45,166
Profit for the
period                      -               -             -          -             -           3,725
Debenture issue 
costs written off           -             (22)            -          -             -              22
Amount (written
back)/realised 
on sales of
properties                  -               -          (955)         -             -             955
---------------        --------        --------     ---------  ---------      --------        --------
Movement in
own shares:                 
Employee
benefit trust               
redemptions                 -               -             -          -          (368)              -
Employee
benefit trust       
allocations                 -               -             -          -           289             388
---------------        --------        --------     ---------  ---------      --------        --------
At 2005                 6,028           1,319        87,139      1,808        (3,267)         50,256
---------------        --------        --------     ---------  ---------      --------        --------

Prior year adjustment

UITF 38, Accounting for ESOP Trusts, has been adopted for the first time in
these financial statements. A prior year adjustment has been made and
comparative figures restated. Unallocated shares held by the Ram Brewery Trust
are now shown as a deduction in arriving at shareholders' funds where previously
they were shown as an investment.



Notes to the accounts

(1) Accounts

This preliminary announcement, which was approved by the board on 25 May 2005,
has been prepared using the same accounting policies as set out in the previous
annual accounts with the exception of the adoption of UITF 38 Accounting for
ESOP Trusts. The accounts present information about the company as an individual
undertaking.

The above financial information does not amount to full accounts within the
meaning of S.240 of the Companies Act 1985. Full accounts for the period ended
27 March 2004, including an unqualified auditors' report, have been delivered to
the Registrar of Companies. The statutory accounts for the period ended 2 April
2005 will be delivered to the Registrar of Companies.

(2) Site review costs

Site review costs of £485,000 (2004: nil) comprise costs incurred to date
relating to the possible redevelopment of the company's sites in Wandsworth.

(3) Taxation

Corporation tax has been provided on the profits for the 53 weeks to 2 April
2005 at 30% (2004: 30%).

(4) Earnings per share
                                                              2005       2004
                                                              £000       £000
---------------------------------                          ---------  ---------
Profit attributable to ordinary shareholders                 6,455      5,870
Site review costs                                              485          -
Non-operating exceptional items, after adjusting for tax      (587)       139
---------------------------------                          ---------  ---------
Adjusted earnings                                            6,353      6,009
---------------------------------                          ---------  ---------

Earnings per share are calculated by dividing the profit attributable to
ordinary shareholders by the weighted average number of ordinary shares in
issue.

The weighted average number of ordinary shares in issue, which exclude the
investment in own shares, is 11,453,672 (2004: 11,991,159).

Diluted earnings per ordinary share are calculated by adjusting basic earnings
per ordinary share to reflect the notional exercise of the weighted average
number of ordinary share options outstanding during the period. The resulting
weighted average number of ordinary shares is 11,687,302 (2004: 12,116,939).

An adjusted earnings per share figure is presented to eliminate the effect of
the site review costs and the non-operating exceptional items on basic earnings
per share.

(5) Ordinary dividends on equity shares
                                                          2005            2004
                                                         Pence           Pence
---------------------------------                      ---------       ---------
Interim dividend                                         11.40           10.85
Proposed final dividend                                  12.25           11.65
---------------------------------                      ---------       ---------
                                                         23.65           22.50
---------------------------------                      ---------       ---------

The trustee of the Ram Brewery Trust has waived its rights to dividends on
shares held within the Ram Brewery Trust General Fund on behalf of the executive
share option schemes.

(6) Net cash inflow from operating activities
                                                      2005       Restated 2004
                                                      £000                £000
Operating profit                                    13,038              12,639
Depreciation                                         8,127               7,547
Employee benefit trust share allocations               677                 640
---------------------------------                  ---------           ---------
Movements in working capital                           203                 (14)
Stocks                                               1,650              (1,465)
Debtors                                              1,010               1,568
Creditors
---------------------------------                  ---------           ---------
Net cash inflow from operating activities           24,705              20,915
---------------------------------                  ---------           ---------



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