Young's declares 'great shape' after Christmas trading as company faces £11m tax hike

Young & Co, the pubs-and-rooms operator with around 228 pubs and 5,600 employees, has reported a successful Christmas trading period despite increased costs for the hospitality sector this year.

The company revealed that revenue in the five weeks to January 13 rose by 30.4 per cent, with like-for-like sales up 11.6 per cent, as reported by City AM.

Despite a drop of just over 13 per cent in the last six months, its share price rose more than four per cent in early trades.

Trading on key festive days was also strong, with combined like-for-like sales covering Christmas Eve, Christmas Day and Boxing Day up 10.5 per cent.

Chief executive Simon Dodd said the festive period had delivered "some of the highest daily sales in Young’s history".

Looking ahead, Dodd expressed caution about the challenges facing consumers and the industry due to the increase in both National Insurance contributions and National Living Wage, but remained optimistic about the year ahead.

The company is bracing for a cost hike of £11m due to higher national insurance contributions and a higher living wage, but has previously stated it has no plans to raise prices in response.

Dodd's comments echo those of pub giants Mitchells & Butlers and Fuller, Smith & Turner, both of which have reported confidence and optimism despite the challenges facing hospitality.

Mitchells, the proprietor of chains such as Harvester, Toby Carvery, and All Bar One, experienced like-for-like sales growth of 10.4 percent during the peak festive three-week period. Meanwhile, Fullers reported like-for-like sales growth of 10.2 percent across the five-week Christmas and New Year period.