Interim Results - Pre-tax Profit Up 49%

Young & Co's Brewery PLC 11 November 1999 YOUNG & CO.'S BREWERY, P.L.C. Interim results For the 26 weeks to 25 September 1999 Key highlights: * Turnover increased to £45.0 million up 8.8% * Operating profit increased to £4.9 million up 14.1% * Adjusted profit before tax increased to £3.8 million** up 20.1% * Profit before tax increased to £5.0 million up 49.0% * Adjusted earnings per share of 19.35p** up 17.2% * Basic earnings per share of 28.85p up 58.6% * Dividend per share increased to 8.70p up 6.1% * Net assets per share increased to £10.31 up 3.2% * Total beer production up 22.6%, mainly due to new brewing contracts * Young's branded beer production up 1.9%, in direct contrast with market trends * New Finch's bar-restaurants trading well ahead of expectations * Continued progress in the free trade, with volume up 8.7% * Special London Ale adjudged 1999 Bottle Conditioned Beer of the Year by CAMRA ** Adjusted to exclude property sales Commenting on the results, John Young, Chairman of Young's Brewery said: 'Our continued progress reflects the actions we have taken to improve operating performance and the better trading conditions experienced during the summer. Our new Finch's bar-restaurants are trading well and we are examining opportunities for further sites. We also continue to make good progress in the free trade and our position here has been strengthened by our acquisition of Waggle Dance. With gearing at 18.7%, we have plenty of scope for future expansion both in our traditional heartland and further afield in the London commuter towns.' For further information: Pat Read, Chief executive Peter Whitehead, Finance director Young & Co.'s Brewery, P.L.C. 0181 875 7000 James Longfield/John Olsen Hogarth Partnership 0171 357 9477 YOUNG & CO.'S BREWERY, P.L.C. INTERIM REPORT FOR THE 26 WEEKS TO 25 SEPTEMBER 1999 Chairman's statement Profit is up 20.1% when adjusted to exclude £1.2M from property disposals. Turnover is up 8.8%, operating profit up 14.1% and basic earnings per share up 58.6% and by 17.2% when adjusted for property sales. I am pleased to report a 6.1% increase in the interim dividend to 8.70p per ordinary share, which will be paid on 9 December 1999 to shareholders on the register on 26 November 1999. These results show strong growth and reflect our determination to improve the company's operating performance and thereby deliver shareholder value. Brewing Beer production is up by 22.6% with resulting benefits in reduced unit costs. This is largely due to contract brewing but I am pleased to say production of our own brands is also up by 1.9%, in direct contrast with market trends. Total beer sales including factored beer increased by 15.2%. We have been successful in negotiating brewing and bottling contracts with national brewers. We have more in the pipeline. We are delighted that Special London Ale was adjudged 1999 Champion Bottle Conditioned Beer of the Year by the Campaign for Real Ale at the Great British Beer Festival, a well deserved award for a splendid beer. Pubs and hotels Managed Houses turnover is up 7.4% and profits up 5.6% helped by good summer weather. The first of our new Finch's bar-restaurants opened in Finsbury Square in May and the second in Chelmsford in October. Both are trading well ahead of expectations. Further sites are planned in Wimbledon and Oxford and other potential sites are being considered. A further four managed houses have either been acquired or contracts exchanged since September bringing the total of the managed estate to 119. We continue to examine opportunities for acquisition but remain committed to maintaining the quality of our estate. Hotel developments continue as we seek to make more profitable use of existing space and land. The previously reported developments continue as planned. These will add an extra 71 rooms bringing the total to 268. In addition we have recently received planning permission for a 76-bedroom hotel, including 8,000 square feet of leisure facilities, at the Castle, Putney and after eleven years of trying to obtain planning permission from Richmond Council, we have at last received consent for a hotel at the Coach and Horses, Kew Green. Hotel profits increased by 9.1%. With the increased expenditure on accommodation, we shall be extracting greater and greater value from our managed house estate. Beer volumes in tenanted pubs were down 4.7% but wines and spirits volumes were up 16.1%. Our tenanted estate continues to provide good returns and we are maintaining investment in this area in both refurbishing existing sites and seeking to acquire new ones. We have recently purchased a large tenanted pub in Dartford which brings the estate up to 68. As with our managed houses the quality of our estate is paramount and we were delighted that the Duke of Cambridge was runner up in The Times 1999 national Pub of the Year competition. Free trade Free trade continues to thrive. Total free trade volume was up 8.7% with particular successes in Take Home and National Accounts. We continue to invest in supporting our brands. Our latest advertising campaign launched in September uses the famous Young's Ram in a number of different poses with touches of both irreverence and humour. We acquired Waggle Dance, a honey flavoured beer, from Vaux in June. This has proved a success and has strengthened our presence in the Take Home market. In May we acquired a strategic investment in Smiles, the Bristol brewery. We now own 8.2% of the share capital of Smiles and this has given us a foothold for our beers both in Smiles' excellent pubs and in their free trade outlets in the West of England. New appointment We warmly welcome Lord Sharman of Redlynch, O.B.E. as a non- executive director. He has recently retired from KPMG International, where he was chairman since 1997, having previously been both chairman and UK senior partner of KPMG Worldwide. His other appointments include the chairmanship of Le Gavroche Ltd. Outlook With gearing at 18.7%, we have plenty of scope for future expansion, and we continue to pursue opportunities to grow our retail estate in our traditional heartland and now further afield to include the London commuter towns. John Young 11 November 1999 YOUNG & CO.'S BREWERY, P.L.C. Unaudited group profit and loss account For the 26 weeks ended 25 September 1999 26 weeks 26 weeks 52 weeks to Sept 99 to Sept 98 to Mar 99 £000 £000 £000 ------------------------------------------------------------------ Turnover 45,009 41,373 83,372 Operating costs (40,075) (37,050) (74,395) ------------------------------------------------------------------ Operating profit 4,934 4,323 8,977 Profit on sales of properties 1,230 217 713 ------------------------------------------------------------------ Profit on ordinary activities before interest 6,164 4,540 9,690 Net interest charge (1,171) (1,189) (2,272) ------------------------------------------------------------------ Profit on ordinary activities before tax 4,993 3,351 7,418 Tax on profit on ordinary activities (1,204) (942) (2,231) ------------------------------------------------------------------ Profit on ordinary activities after tax 3,789 2,409 5,187 Preference dividends on non-equity shares (53) (53) (107) ------------------------------------------------------------------ Profit attributable to ordinary shareholders 3,736 2,356 5,080 Ordinary dividends on equity shares (1,088) (1,062) (2,201) ------------------------------------------------------------------ Retained profit for the financial period 2,648 1,294 2,879 ================================================================== YOUNG & CO.'S BREWERY, P.L.C. Unaudited group balance sheet At 25 September 1999 At Sept 99 At Sept 98 At Mar 99 £000 £000 £000 ------------------------------------------------------------------ Fixed assets 170,075 168,091 168,551 ------------------------------------------------------------------ Current assets and liabilities Stocks 4,519 4,000 4,438 Debtors 6,719 6,051 5,816 Cash 5,246 351 4,035 ------------------------------------------------------------------ 16,484 10,402 14,289 ------------------------------------------------------------------ Creditors: amounts falling due within one year (15,852) (15,484) (14,729) ------------------------------------------------------------------ Net current assets/(liabilities) 632 (5,082) (440) ------------------------------------------------------------------ Total assets less current liabilities 170,707 163,009 168,111 Creditors: amounts falling due after more than one year (30,289) (27,615) (30,341) Provisions for liabilities and charges (5,521) (4,730) (5,521) ------------------------------------------------------------------ 134,897 130,664 132,249 ================================================================== Capital and reserves Called-up share capital: equity 6,475 6,475 6,475 non-equity 1,361 1,361 1,361 Share premium account 1,434 1,457 1,450 Revaluation reserve 91,661 92,189 91,587 Profit & loss account 33,966 29,182 31,376 ------------------------------------------------------------------ 134,897 130,664 132,249 ================================================================== YOUNG & CO.'S BREWERY, P.L.C. Unaudited group cash flow statement For the 26 weeks ended 25 September 1999 26 weeks 26 weeks 52 weeks to Sept 99 to Sept 98 to Mar 99 £000 £000 £000 ------------------------------------------------------------------ Net cash inflow from operating activities 6,647 8,801 14,591 ------------------------------------------------------------------ Interest received 87 15 70 Interest paid (1,059) (1,282) (2,405) Non-equity dividends paid (53) (53) (107) ------------------------------------------------------------------ Returns on investments and servicing of finance (1,025) (1,320) (2,442) ------------------------------------------------------------------ Corporation tax paid (1) (29) (1,734) ------------------------------------------------------------------ Purchases of tangible fixed assets (4,723) (7,232) (10,112) Sales of tangible fixed assets 1,500 881 2,707 ------------------------------------------------------------------ Capital expenditure (3,223) (6,351) (7,405) ------------------------------------------------------------------ Equity dividends paid (1,139) (1,075) (2,137) ------------------------------------------------------------------ Cash inflow before the use of liquid resources and financing 1,259 26 873 (Decrease)/increase in loan capital (38) (500) 2,347 (Decrease) in lease finance (10) (10) (20) ------------------------------------------------------------------ Increase/(decrease) in cash in period 1,211 (484) 3,200 ================================================================== Reconciliation of net cash flow to movement in net debt Increase/(decrease) in cash in period 1,211 (484) 3,200 Decrease/(increase) in debt in period 48 510 (2,327) ------------------------------------------------------------------ Decrease in net debt in period 1,259 26 873 Opening net debt (26,437) (27,310) (27,310) ------------------------------------------------------------------ Closing net debt (25,178) (27,284) (26,437) ================================================================== Notes (1) Recognised gains and losses The results above are all in respect of the continuing operations of the group. There are no profits or losses other than those disclosed above. (2) Taxation Corporation tax has been provided at a rate of 30% (1998, 31%; for the 52 weeks to 27 March 1999, 31%) on the profits for the 26 weeks to 25 September 1999. (3) Earnings and ordinary dividends per share 26 weeks 26 weeks to 52 weeks to to Sept 99 Sept 98 Mar 99 Pence Pence Pence Earnings --------------------------------------------------------------------- Basic earnings per 50p ordinary share 28.85 18.19 39.23 Effect of profit on sales of properties (9.50) (1.68) (4.21) --------------------------------------------------------------------- Adjusted earnings per 50p ordinary share 19.35 16.51 35.02 ===================================================================== Ordinary dividends --------------------------------------------------------------------- Interim 8.70 8.20 8.20 Final - - 8.80 --------------------------------------------------------------------- 8.70 8.20 17.00 ===================================================================== There are 12,949,636 ordinary shares in issue (1998 12,949,636). The trustees of the Ram Brewery Trust have waived their rights to dividends on shares held within the Ram Brewery Trust General Fund on behalf of the directors' share option schemes. (4) Accounts 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 year ended 27 March 1999, including an unqualified auditors' report, have been delivered to the Registrar of Companies. YOUNG & CO.'S BREWERY, P.L.C. The Ram Brewery, Wandsworth, London SW18 4JD For further information, contact John Young (Chairman), Patrick Read (Chief executive) or Peter Whitehead (Finance director). Telephone: 0181-875 7000

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