Brewery sale pays off with profits leap for Young's

London brewer Young's decision two years ago to sell its Ram Brewery in Wandsworth for £46.6 million and spend the money on buying more pubs was fully vindicated today as it reported much higher than expected profits.

Under chief executive Stephen Goodyear, Young's spent £26.6 million buying nine more pubs and £9.4 million refurbishing more than dozen of its existing estate.

Among the new pubs are the Cock & Hen in Fulham, the Mitre in Lancaster Gate and the Marlborough in Richmond. Existing outlets that had major work done included the Flask in Hampstead, the Spotted Horse in Putney and the Bunch of Grapes at London Bridge.

Headline pre-tax profits jumped 55% to £18.6 million on revenues 6.6% higher at £122 million in the year to the end of March. The dividend rises 34% to 12.5p.

Goodyear said: "This is our first full year's trading since the major reorganisation and, given the current market conditions, the sale of the brewery looks well-timed. The proceeds from the sale have been invested in pub acquisitions and redevelopments for the long-term benefit of the business and our shareholders."

He said the first eight weeks of the new financial year had seen "resilient trading", with the managed estate showing a 3.4% increase in sales.