Final Results

Young & Co's Brewery PLC
31 May 2007



31 May 2007


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

PRELIMINARY RESULTS
FOR THE 52 WEEKS TO 31 MARCH 2007


Financial highlights

Turnover                                            £126.6 million       Up 2.2%
Turnover from retail operations                     £113.3 million      Up 15.3%
Adjusted profit before tax*                          £12.0 million      Up 18.5%
Adjusted EBITDA*                                     £24.2 million      Up 11.8%
Profit before tax                                    £46.3 million     Up 517.2%
Adjusted earnings per share*                                75.36p      Up 28.3%
Dividend per share (interim + recommended final)            37.35p      Up 50.0%


* Adjusted to exclude exceptional items


Operational highlights

  • Business transformed and benefits already showing through;

  • Managed house sales up 18.1%, with like for like sales up 10.5%;

  • Very strong H2 performance, with adjusted profits up 34.7%;

  • £56.8 million invested in the business, including £36.4 million on the
    acquisition of 14 pubs;

  • Preparations well advanced for the 1 July smoking ban, with 25% of
    managed pub estate already trading successfully as non-smoking pubs;

  • Successful integration of Wells & Young's completed;

  • Acquisition of the Courage Brands in January establishes Wells & Young's
    as one of the UK's leading cask ale producers.


Stephen Goodyear, Chief Executive, commented:

'Young's has been transformed over the past year. The substantial changes we
have made to the business, together with the improving returns we are getting
from ongoing investment in our estate, are clearly evident in our underlying
results, particularly in our second half trading.

'This momentum has continued into the current financial year. Trading in our
pubs in the first eight weeks has been strong, with total sales for the period
to 26 May up 25.1% and up 9.6% on an uninvested like for like basis.

'Whilst there are clearly near term risks for our industry, from the smoking ban
and pressures on consumer spending, we believe we are well prepared to face
these challenges. Young's is a business in very good shape. We have a strong
customer offering, a great team and a clear strategy for growth. We face the
future with considerable confidence.'


For further information, please contact:

Young & Co.'s Brewery, P.L.C.
Stephen Goodyear                           Today: 020 7357 9477
Chief Executive                            Thereafter: 020 8875 7000

Peter Whitehead                            Today: 020 7357 9477
Finance Director                           Thereafter: 020 8875 7000

Hogarth Partnership
James Longfield                            020 7357 9477



Photographs are available from Hogarth on request.


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


                              PRELIMINARY RESULTS
                       FOR THE 52 WEEKS TO 31 MARCH 2007


Operational review

After a first half of enormous change at Young's, which included our brewing
joint venture with Charles Wells, the sale of the Ram Brewery and nearby office
and warehouse space, our Wandsworth sites, and a significant investment in our
retail estate, our second half trading and profits have prospered, demonstrating
the benefits of these actions.

Turnover was up 2.2% for the year. Increased managed pubs sales and sales to our
tenanted and leased estate have more than offset the loss of wholesale turnover
since the brewery closed at the end of September. These sales were up 15.3% for
the year, and up 17.9% in the second half alone. More importantly, adjusted
profit in the second half, which excludes exceptional items, was up 34.7%, as
the benefits of significant prior year investment in our estate and the improved
supply terms from Wells & Young's were demonstrated.

The results for the year as a whole are, however, distorted by a number of
exceptional operating and non-operating one-off items. Reported profit before
tax was £46.3 million (2006: £7.5 million). This includes £46.6 million profit
on the sale of the Wandsworth sites, as well as £9.0 million of exceptional
costs connected with this deal and the formation of Wells & Young's. In
addition, we completed the final phase of our restructuring just after the end
of the year, with the relocation of our head office from the Ram Brewery to new,
modern offices at Riverside House in Wandsworth. Excluding these adjustments,
profit before exceptional items and tax was £12.0 million and adjusted earnings
per share were 75.36p, up 18.5% and 28.3% respectively.

The foundations are now firmly in place for Young's continued success. We have a
clear retail and property strategy which has already begun to deliver a step
change in our financial performance. As a result the board, as it did at the
half year, is proposing a 50% increase in the dividend. With a final dividend of
19.35p, the total dividend for the year will be 37.35p. If approved by
shareholders, the final dividend will be paid on 12 July 2007 to shareholders on
the register at the close of business on 15 June 2007.


Retail operations

With the transfer of our brewing and wholesaling activities to Wells & Young's,
our focus is now firmly on our retail activities and these have performed very
well in the year, particularly in the second half, primarily as a consequence of
improved purchasing economies. Benefits from significant recent investments are
also beginning to be achieved.

Our strong retail performance gives us great confidence in our strategy of
positioning Young's at the premium end of the pub sector, differentiating our
offer in a competitive market place by exploiting our excellent locations,
customer focused designs, high service standards, quality food and market
leading drinks. We have never been more proud of the overall quality of our
estate.

Young's retail business comprised 216 pubs at the year end, of which 176 were
freehold and 10 were leases with in excess of 45 years to run, with rents that
in total amounted to less than £10,000. 114 of these pubs were operated as
managed pubs and 102 as tenanted or leased ones.


Managed pubs

The managed division saw an increase in turnover of 18.1% to £98.6 million. Like
for like sales increased 10.5% on a same outlet basis and 6.9% on an uninvested
basis. Strong like for likes, transfers from tenanted, new developments and
acquisitions all contributed to an increase of 17.6% in our managed division's
operating profit.

The improvement in operating profit was most marked in the second half, with an
increase of 29.4% year on year, as the full benefits of the drinks supply
agreement with Wells & Young's took effect. This improvement was achieved
despite the impact of closures during our refurbishment programme, large start
up costs incurred on pubs acquired in the year, long lead times for our newly
built riverside sites as well as ongoing increases in the minimum wage,
utilities and business rates.

Operational improvements have played a significant part in driving our like for
like sales and profits. New management initiatives have created a total service
culture within our pubs, with imaginative and extensive training programs
designed to drive increased trade. This has been delivered in tandem with the
continued roll-out of our websites which currently allow targeted marketing
benefits for nearly half of our estate. In March alone, our pub websites enjoyed
over 120,000 hits, showing massive month on month growth.

Food has been a significant growth driver across our managed pubs, where our
high quality, individual, non-branded offering has led to an overall growth in
food sales of 33.0%. Food sales now account for 23.6% of total managed sales.

We have also seen a welcome return to growth from our hotel rooms reflecting the
benefits of our room refurbishment programme which was completed in the year and
which has targeted consumer demand for boutique hotels. This has coincided with
a more buoyant tourist market in London. RevPar for all our hotel rooms (average
room rate achieved multiplied by occupancy percentage) was up 10.3% at £40.14.

We invested a total of £38.4 million in our managed estate in the year, of which
£7.5 million was on existing pubs and £30.9 million on acquisitions. Nine major
developments were completed at the Windmill in Clapham, the Ship and the Alma in
Wandsworth, the Duke's Head in Putney, the Bear in Esher, Horts in Bristol, the
Dog & Fox in Wimbledon, the Lamb Tavern in Leadenhall Market and the Double
Locks in Exeter. In addition three new Thames-side pubs - the Riverside in
Vauxhall, the Waterside in Fulham and the Waterfront in Battersea - were also
developed and opened. Our estate now includes 13 Thames-side pubs, the largest
estate of this kind of any pub group.

We acquired and developed eight pubs in the year: the Grange in Ealing, the
Prince Alfred in Maida Vale, the Fire Stables in Wimbledon, the Crown & Anchor
near Chichester, the Grove in Camberwell, the Waterfront in Battersea, the
Hollywood in Fulham and the Hand & Spear in Weybridge. Despite the impending
smoking ban, pub prices remain at historically high levels, particularly in
London. Whilst we are constantly looking to add to our managed estate, we will
only invest in acquisitions that meet our strict investment criteria and produce
returns in excess of our cost of capital.

The success of our refurbishments and developments is most encouraging. Over
half of the managed estate has been refurbished in the last two years and this
figure is planned to reach 80% by the end of this calendar year. The pubs that
have now finished their first full year post refurbishment investment of £3.3
million are generating sales growth of 79.7% and a return on invested capital of
24.5%.

We believe we are well prepared for the smoking ban, which comes into effect on
1 July. In recent years, all development activity has included, where
appropriate, investment in covered, well-lit and comfortable outside areas that
will enable those customers who wish to smoke to be able to do so in comfort.
Already we have introduced no smoking in about a quarter of the managed estate
and these pubs are adjusting well. We plan to have all pubs non-smoking ahead of
the 1 July ban and, whilst there may be some initial downside from the ban, we
believe that the medium to long term effects will be positive for Young's,
especially with our enhanced food offering and premium market positioning.


Tenanted and leased pubs

The tenanted and leased division's turnover was down 0.6% to £14.7 million but
profit was up 7.3% and like for like profits increased by 4.6%. This improvement
in profit was achieved despite the transfer during the year of some landmark
tenanted pubs back into management (The Ship and the Alma in Wandsworth and the
Duke of Cambridge in Battersea) and reflects the improved drink supply terms
that benefited second half trading.

We invested £6.9 million in the tenanted and leased estate in the year, of which
£5.5 million was on six new freehold pubs. We have created a new tenanted site
from part of our Dog & Fox redevelopment, and disposed of one freehold and five
leasehold pubs. Investments in the year have focused on helping our tenants
prepare for the smoking ban, with all but nine of our tenancies having outside
areas that can be used to provide an opportunity to smoke.

We believe the tenanted estate provides substantial opportunity for growth. We
have put in place a five year investment programme for the tenanted estate in
which the pubs will be refurbished to bring them into line with the quality
standards present in our managed estate. In addition to investing alongside our
tenants, we intend to increase markedly the number of long leases that we grant.
Such a format inevitably attracts the best operators and should result in a
significant improvement in sales and profits.

The following sites were all transferred from management: the Gardener's Arms in
Wandsworth, the Pig and Whistle in Earlsfield, the King's Arms in Mitcham, the
Princess of Wales in Merton, the Princess of Wales in Clapton and the Square
Tavern in Euston.


Wells & Young's Brewing Company

Wells & Young's commenced trading at the beginning of October. This marked the
culmination of many months of hard work on the integration of the two
businesses, including the successful matching of Young's beers achieved through
the dedication and expertise of our respective brewing teams.

The combination of Charles Wells and Young's brewing interests has created a
substantial new beer company, with a broad portfolio of specialty cask ale and
lager brands, led by Young's Bitter (standard) and Wells Bombardier (premium).

This portfolio was further strengthened in January with the acquisition of the
Courage beer brands (Courage Best Bitter, Directors, Courage Mild and Courage
Light Ale) from Scottish & Newcastle. These brands have strong consumer
recognition which we believe will prosper with Wells & Young's and will
additionally have a dramatic impact on its brewing capacity utilisation and
allow the business to focus on its core own brands.

From 29 September 2006 (date of investment) to 31 March 2007, Wells & Young's,
which is treated as an associated undertaking in our financial statements, had
sales of £89.5 million and through our 40% share, Young's benefited from
pre-exceptional profits of £0.1M and EBITDA of £1.0M after adjusting for £0.2
million of exceptional costs. The exceptional items reflect the restructuring
costs incurred as the two businesses were put together, as well as the costs
associated with the purchase of the Courage brands. Following this acquisition
Wells & Young's is now one of the leading cask ale brewers in the United Kingdom
and the range and quality of beers in our pubs has never been better. It is
however a business in transition and we anticipate it making a growing
contribution to our performance in the years ahead.


Investment and finance

During the course of the year we invested a total of £56.8 million. This
included £45.3 million on new and existing pubs and £10.0 million as part of our
investment in Wells & Young's. The investment has been funded by new short dated
bank facilities and a £4.0 million improvement in working capital, largely as a
result of the brewery merger. Net debt at the end of the year was £101.2
million, and gearing was 50.7%. Cash receipts from sale of the Wandsworth sites
fall due within the new financial year, the first £10.3 million in July with the
remaining £58.7 million in January. These receipts along with the improved
financial performance provide the opportunity for further investment in the
business or capital returns to shareholders as appropriate.

The Ram Brewery site will be vacated during the current financial year. Its
ongoing decommissioning will continue until handover in January 2008. The impact
of this is expected to be neutral to Young's over the period as the costs are
expected to be offset by receipts from the sale of scrap, reclaimed materials
and any other items of interest that arise from this work.

In November we commissioned Fleurets Chartered Surveyors to revalue our entire
estate. The market value of the estate was determined as £399 million, an uplift
of £174 million on the then book value. There has been some estate activity
since then both in terms of investment and disposal. The valuation has not been
incorporated into the financial statements; if it had, allowing for the recent
estate activity, the net assets per share would have increased by £14.88 per
share to £31.96. This valuation was made in accordance with the RICS Appraisal
and Valuation Standards (Red Book) and represented the aggregate sum of the
property assets. It was not a portfolio valuation and the value of the estate as
a single entity would have been significantly higher.

Shortly after the year end we proposed to stockholders the early redemption of
our 9.5% debenture stock due 2018 and gave notice of our intention to accept
certain offers for this stock. On 16 May 2007 stockholders approved the proposal
and the stock was redeemed on 21 May 2007. This debenture was expensive in terms
of coupon and inflexible with regards certain covenants. This is a non-adjusting
post balance sheet event and will result in a £6.9 million exceptional loss in
the new financial year. In connection with this we negotiated a new £40.0
million revolving credit facility expiring on 16 May 2008.

At the year end £39.2 million (38.7%) of net debt was at fixed interest rates,
of which £29.1 million related to the debenture referred to above. The board
recognises there is always an interest rate risk attached to variable rate
borrowings but having taken into account the proceeds due within the next twelve
months from the unconditional sale of the Wandsworth sites to Minerva, it
believes this risk is not inappropriate.


Board changes

The year also saw a number of changes to the board, most significantly the sad
death of our chairman, John Young. John was a strong supporter of the changes
made to the business over the year, which he believed were in the best interests
of shareholders whilst preserving the unique heritage of our beers. It was
particularly poignant that his death should occur in the week that the last
barrels of beer were being brewed at the Ram Brewery and the first were being
brewed by Wells & Young's in Bedford. John was succeeded as chairman by
Christopher Sandland, a long-serving director of Young's and the first
non-family chairman in the company's history.

Other changes included the appointment in July of Nicholas Bryan, CEO and
co-founder of Innserve plc, as a non-executive director. Nick has a wealth of
expertise in the hospitality, property and brewing sectors gained through
various senior positions in the industry, including managing director of Courage
and a non-executive director of Inntrepreneur.

We also said farewell and thank you to two long-serving family directors, Brian
Palmer and James Young, who both retired from the board at the end of our
financial year. Brian and James made enormous contributions to the company over
their many years of service and we wish them well for a long and happy
retirement.


Strategy

Young's is a focused pubs and property business; operating managed, tenanted and
leased pubs in London and Southern England. Our strategy, as set out in the
interim results in November, is as follows.


Active operational management

We seek to position the Young's estate at the premium end of the pub market,
focusing on the style, quality and individuality of each outlet. We measure
ourselves against the best individual pub and restaurant operators in the
locations where we trade, with a strong emphasis on service and training and by
maintaining a high level of investment in the estate.

By investing in high quality pub design, ambience, food, service and ensuring a
premium drinks offering, we have an operational strategy to drive performance.
Through this investment, further innovation and the differentiation of the
Young's brand, we plan to deliver both absolute and like for like sales growth.
Our premium strategy aims to attract more customers and improve gross margins.


Active estate management

Organic growth will be augmented by the active management of our estate,
including acquisitions of individual pubs or pub packages to build scale to the
business and maximise value for shareholders. We have in place an operating
infrastructure and management team capable of managing a significantly larger
pub estate and we are actively exploring acquisition opportunities to deliver
this.

We will monitor the balance of the estate between managed, tenanted and leased
to ensure that we are adopting the most beneficial format and we will maintain
our programme of investments in high returning projects across the existing pub
estate. Where appropriate, we will continue to make disposals. Our overriding
property objective is to maximise returns, whilst maintaining and improving the
overall quality of the Young's estate.

We will target pubs that meet our strict investment criteria and produce returns
in excess of our cost of capital. Acquisitions will be focused on our existing
trading areas of London and Southern England. In line with the board's stated
policy, investment opportunities will be measured against the benefits of
returning capital to shareholders.


Outlook and current trading

The benefits of our strategy are evidenced by our trading performance. Trading
in our pubs in the first eight weeks of the current financial year has been
strong, building on the momentum achieved in the second half and benefiting from
good weather in April. Total sales for the period to 26 May were up 25.1% and up
9.6% on an uninvested like for like basis.

Whilst there are clearly near term risks for our industry, from the smoking ban
and pressures on consumer spending, we believe we are well prepared to face
these challenges. In addition to continuing like for like growth and positive
operational performance, our financial results in the coming year will benefit
from a full year effect of improved drink supply terms, first full year returns
on acquisitions and major developments in 2007, reduced head office costs, the
initial interest benefit from the cash receipts of the brewery sale and an
improving contribution from Wells & Young's.

Young's is a business in very good shape. We have a strong customer offering, a
great team and a clear strategy for growth. We face the future with considerable
confidence.


                         YOUNG & CO.'S BREWERY, P.L.C.
                   Audited consolidated profit and loss account
                      For the 52 weeks ended 31 March 2007


                                                               2007     Restated
                                                                            2006
                                                               £000         £000
--------------------------------------                    ---------    ---------
Turnover                                                    126,636      123,873
Net operating costs before exceptional items              (111,262)    (110,381)
--------------------------------------                    ---------    ---------
Operating profit before exceptional items                    15,374       13,492
Operating exceptional items                                   (709)      (2,098)
--------------------------------------                    ---------    ---------
Operating profit                                             14,665       11,394
Share of operating profit of associated undertaking             336            -
Non-operating exceptional items
Costs of fundamental reorganisation                         (9,016)        (476)
Profit/(loss) on sale of fixed assets                        46,164         (70)
--------------------------------------                    ---------    ---------
Profit on ordinary activities before interest                52,149       10,848
Net interest charge                                         (5,418)      (3,873)
--------------------------------------                    ---------    ---------
Net interest charge - group                                 (5,165)      (3,873)
Net interest charge - associated undertaking                  (253)            -
--------------------------------------                    ---------    ---------

Discount of site proceeds                                   (2,161)            -
Other finance income                                          1,731          527
--------------------------------------                    ---------    ---------
Profit on ordinary activities before tax                     46,301        7,502
Tax on profit on ordinary activities                          (890)      (2,958)
--------------------------------------                    ---------    ---------
Profit attributable to ordinary shareholders                 45,411        4,544
Ordinary dividends on equity shares                         (3,589)      (2,808)
--------------------------------------                    ---------    ---------
Retained profit for the financial period                     41,822        1,736
--------------------------------------                    ---------    ---------

                                                            Pence          Pence
--------------------------------------                    ---------    ---------
Basic earnings per 50p ordinary share                      391.29          39.39
Effect of exceptional items                              (315.93)          19.33
--------------------------------------                  ---------      ---------
Adjusted earnings per 50p ordinary share                    75.36          58.72
--------------------------------------                  ---------      ---------
Diluted basic earnings per 50p share                       383.26          38.43
--------------------------------------                  ---------      ---------


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


The comparative figures have been restated for the effects of the adoption of
FRS 20 Share-based payment.

The comparative figures included as site review and transaction costs in
operating exceptional items in the prior year have been reclassified as costs of
fundamental reorganisation in non-operating exceptional items.



                         YOUNG & CO.'S BREWERY, P.L.C.
                      Audited consolidated balance sheet
                                At 31 March 2007


                                                                 2007   Restated
                                                                            2006
                                                                 £000       £000
---------------------------------------                      --------   --------
Fixed assets
Tangible fixed assets                                         232,286    217,526
Investment in associated undertaking                           22,458          -
---------------------------------------                      --------   --------
                                                              254,744    217,526
---------------------------------------                      --------   --------
Current assets and liabilities
Stocks                                                          1,431      4,193
Debtors                                                        71,536      6,839
Cash                                                              999          -
---------------------------------------                      --------   --------
                                                               73,966     11,032

Short term borrowings                                        (58,184)      (283)
Other creditors                                              (23,383)   (19,219)
---------------------------------------                      --------   --------
Creditors: amounts falling due within one year               (81,567)   (19,502)
---------------------------------------                      --------   --------
Net current liabilities                                       (7,601)    (8,470)
---------------------------------------                      --------   --------

Total assets less current liabilities                         247,143    209,056

Creditors: amounts falling due after more than one year      (43,979)   (54,140)
Provisions for liabilities and charges                        (4,295)    (8,122)
---------------------------------------                      --------   --------

Net assets excluding retirement benefit asset/(liability)     198,869    146,794
Retirement benefit asset/(liability)                              669    (4,129)
---------------------------------------                      --------   --------
Net assets                                                    199,538    142,665
---------------------------------------                      --------   --------

Capital and reserves
Called-up share capital                                         6,028      6,028
Share premium account                                           1,274      1,296
Revaluation reserve                                            77,574     87,139
Capital redemption reserve                                      1,808      1,808
Investment in own shares                                      (2,123)    (2,861)
Share-based payments reserve                                      197        107
Profit and loss account                                       114,780     49,148
---------------------------------------                      --------   --------

Equity shareholders' funds                                    199,538    142,665
---------------------------------------                      --------   --------



The comparative figures have been restated for the effects of the adoption of
FRS 20 Share-based payment.



                         YOUNG & CO.'S BREWERY, P.L.C.
                    Audited consolidated cash flow statement
                      For the 52 weeks ended 31 March 2007


                                                               2007     Restated
                                                                            2006
                                                               £000         £000
---------------------------------------                    --------     --------
Net cash inflow from operating activities                    28,356       22,245
---------------------------------------                    --------     --------
Interest received                                                 3            8
Interest paid                                               (5,622)      (4,021)
---------------------------------------                    --------     --------
Returns on investments and servicing of finance             (5,619)      (4,013)
---------------------------------------                    --------     --------
Corporation tax paid                                        (2,706)      (3,088)
---------------------------------------                    --------     --------
Purchase of tangible fixed assets                          (46,755)     (13,451)
Sales of tangible fixed assets                                  468          123
Cost of fundamental reorganisation                          (6,896)        (476)
---------------------------------------                    --------     --------
Capital expenditure and financial investment               (53,183)     (13,804)
---------------------------------------                    --------     --------
Investment in associated undertaking                       (10,000)            -
---------------------------------------                    --------     --------
Acquisitions and disposals                                 (10,000)            -
---------------------------------------                    --------     --------
Equity dividends paid                                       (3,589)      (2,808)
---------------------------------------                    --------     --------
Cash outflow before financing                              (46,741)      (1,468)
---------------------------------------                    --------     --------
Increase in loan capital                                     47,851          362
Decrease in lease finance                                      (17)         (16)
---------------------------------------                    --------     --------
Financing                                                    47,834          346
---------------------------------------                    --------     --------
Increase/(decrease) in cash in period                         1,093      (1,122)
---------------------------------------                    --------     --------



The comparative figures included as site review and transaction costs in
operating exceptional items in the prior year have been reclassified as costs of
fundamental reorganisation in non-operating exceptional items.



                         YOUNG & CO.'S BREWERY, P.L.C.
Audited consolidated reconciliation of net cash flow to movement in net debt
                      For the 52 weeks ended 31 March 2007



                                                              2007      Restated
                                                                            2006
                                                              £000          £000
---------------------------------------                   --------      --------
Increase/(decrease) in cash in period                        1,093       (1,122)
Increase in debt in period                                (47,834)         (346)
---------------------------------------                   --------      --------
Increase in net debt in period                            (46,741)       (1,468)
Opening net debt                                          (54,423)      (52,955)
---------------------------------------                   --------      --------
Closing net debt                                         (101,164)      (54,423)
---------------------------------------                   --------      --------



                         YOUNG & CO.'S BREWERY, P.L.C.
     Audited consolidated statement of total recognised gains and losses
                      For the 52 weeks ended 31 March 2007

                                                                2007    Restated
                                                                            2006
                                                                £000        £000
---------------------------------------                     --------    --------
Profit for the financial period                               45,411       4,544
Actuarial gain on retirement benefit schemes                   3,539       5,750
Deferred tax on actuarial gain                               (1,062)     (1,725)
Gain on exchange of assets for interest in associated
undertaking                                                   11,205           -
---------------------------------------                     --------    --------
Total recognised gains for the financial period               59,093       8,569
Prior year adjustment                                          (107)           -
---------------------------------------                     --------    --------
Total gains recognised since last annual report               58,986       8,569
---------------------------------------                     --------    --------



                         YOUNG & CO.'S BREWERY, P.L.C.
   Audited consolidated reconciliation of movements in shareholders' funds
                      For the 52 weeks ended 31 March 2007

                                                                  2007  Restated
                                                                            2006
                                                                  £000      £000
---------------------------------------                       --------  --------
Profit attributable to ordinary shareholders                    45,411     4,544
Dividends                                                      (3,589)   (2,808)
Movement in own shares: Employee benefit trust allocations       1,279       406
Share-based payment                                                 90       107
Actuarial gain on retirement benefit schemes, net of
deferred tax                                                     2,477     4,025
Gain on exchange of assets for interest in associated
undertaking                                                     11,205         -
---------------------------------------                       --------  --------
Net addition to shareholders' funds                             56,873     6,274
Opening shareholders' funds                                    142,665   136,391
---------------------------------------                       --------  --------
Closing shareholders' funds                                    199,538   142,665
---------------------------------------                       --------  --------


The comparative figures have been restated for the effects of the adoption of
FRS 20 Share-based payment.



Notes to the accounts


(1) Accounts

This preliminary announcement, which was approved by the board on 30 May 2007,
has been prepared using the same accounting policies as set out in the previous
annual accounts with the exception of the adoption of FRS 20 Share-based
payment.

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 1
April 2006 have been delivered to the Registrar of Companies. The auditors'
report on those accounts was unqualified and did not contain any statement under
S.237 of the Companies Act 1985.


(2)

a) Operating exceptional items

                                                              2007     Restated
                                                                           2006
                                                              £000         £000
---------------------------------------                   --------     --------

Capital gains tax on ESOP allocated shares                   (509)        (708)
Property valuation costs                                     (200)            -
Transfer of company's share listing to AIM                       -        (386)
Lease compensation payments to tenants                           -        (760)
Other employee related matters                                   -        (244)
---------------------------------------                   --------     --------
                                                             (709)      (2,098)
---------------------------------------                   --------     --------


(b) Non-operating exceptional items

                                                              2007     Restated
                                                                           2006
                                                              £000         £000
---------------------------------------                   --------     --------

Proceeds from Wandsworth sites                              69,000            -
Less: Net book value of sites                             (10,849)            -
Assets held on sites                                      (11,543)            -
---------------------------------------                   --------     --------
Gain on disposal of Wandsworth sites                        46,608            -
Loss on sales of properties and investments                  (444)         (70)
---------------------------------------                   --------     --------
                                                            46,164         (70)

Cost of fundamental reorganisation                         (9,016)        (476)
---------------------------------------                   --------     --------
                                                            37,148        (546)
---------------------------------------                   --------     --------


The tax credit on exceptional items was £2,387,000 (2006: £413,000)

The cost of fundamental reorganisation comprises redundancy costs,
decommissioning costs and professional charges relating to the sale of the
Wandsworth sites and merger of brewing interests with Charles Wells Ltd.


(3) Taxation

Corporation tax has been provided on the profits for the 52 weeks to 31 March
2007 at 30% (2006: 30%).


(4) Earnings per share
                                                                  2007  Restated
                                                                            2006
                                                                  £000      £000
---------------------------------------                       --------  --------

Profit attributable to ordinary shareholders                    45,411     4,544
Operating exceptional items, after adjusting for tax (note
5(a))                                                              709     2,157
Non-operating exceptional items, after adjusting for tax
(note 5(b))                                                   (39,535)        74
Discount of site proceeds                                        2,161         -
---------------------------------------                       --------  --------
Adjusted earnings after tax                                      8,746     6,775
---------------------------------------                       --------  --------

                                                              Number      Number
---------------------------------------                     --------    --------

Weighted average number of ordinary shares in issue       11,605,450  11,536,993
Add: the notional exercise of the weighted average
number of ordinary shares during the year                    243,158     287,861
---------------------------------------                     --------    --------
Diluted weighted average number of ordinary shares
in issue                                                  11,848,608  11,824,854
---------------------------------------                     --------    --------

                                                                Pence      Pence
--------------------------------------                      ---------  ---------
Basic earnings per 50p ordinary share                          391.29      39.39
Effect of exceptional items and discount of site proceeds    (315.93)      19.33
--------------------------------------                      ---------  ---------
Adjusted earnings per 50p ordinary share                        75.36      58.72
--------------------------------------                      ---------  ---------
Diluted basic earnings per 50p share                           383.26      38.43
--------------------------------------                      ---------  ---------


The weighted average number of shares in issue exclude the group's investment in
its own shares.

An adjusted earnings per share figure is presented to eliminate the effect of
the exceptional items on basic earnings per share.


(5) Ordinary dividends on equity shares

                                                              2007          2006
                                                             Pence         Pence
---------------------------------------                   --------      --------
Final dividend (previous year)                               12.90         12.25
Interim dividend (current year)                              18.00         12.00
---------------------------------------                   --------      --------
                                                             30.90         24.25
---------------------------------------                   --------      --------


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

                                                                2007   Restated
                                                                           2006
                                                                £000       £000
---------------------------------------                     --------   --------

Operating profit                                              14,665     11,394
Depreciation                                                   7,810      8,145
Employee benefit trust share allocations                       1,279        406
Provision for capital gains tax on ESOP allocated shares         509        708
Share-based payment                                               90        107
Movements in working capital
Stocks                                                         2,716      (175)
Debtors                                                        2,485      (592)
Creditors                                                    (1,198)      2,252
---------------------------------------                     --------   --------
Net cash inflow from operating activities                     28,356     22,245
---------------------------------------                     --------   --------



(7) Changes in accounting policies


The company has adopted FRS 20 Share-based payment accounting standard during
the year which requires recognition of an accounting charge for share option
plans. The charge to the profit and loss account for the year for FRS 20 is
£90,000 (2006: £107,000). A corresponding entry has been made in the share-based
payment reserve in equity shareholders' funds to reflect this entry. Comparative
figures have been restated for the effects of this change.






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