Young & Co's Brewery

Website: Young & Co's Brewery
Index: Main Market
EPIC: YNGA
Supersector: Travel and Leisure
Sector: Travel and Leisure
Subsector: Restaurants and Bars
Market Cap: £435.73M
Payout Frequency: Semi-Annual

Young & Co's Brewery Dividend Analysis and Summary

Key Dividend Details

Final dividend (recommended): 12.22p per share
Total FY26 dividend (interim + recommended final): 24.44p (up 6.0% year-on-year vs 23.06p)
Ex-dividend date: 04/06/2026 (derived from record date below)
Record date: 05/06/2026
Payment date: 15/07/2026
Interim dividend paid during the year: 12.22p
Indicative yield: not stated in the RNS (depends on prevailing share price)

Coverage and Affordability

Adjusted EPS: 64.56p (+4.4% y/y); implied payout ratio on adjusted EPS ~38% (dividend cover ~2.6x).
Cash generation: Net cash from operations £105.2m; cash cost of dividends paid in the period £14.7m (proposed final c.£7.5m), indicating strong cash cover (c. 4–5x on an annualised basis).
Balance sheet: Net debt (pre-IFRS 16) reduced to £224.2m (from £248.3m); leverage (pre-IFRS 16) 2.0x adjusted EBITDA (post-IFRS 16: 2.7x).

Dividend Sustainability and Growth

Trajectory: Total dividend up 6% maintains the company’s “progressive” dividend policy.
Earnings support: Adjusted PBT £53.1m (+2.9%), adjusted EBITDA £115.2m (+1.4%); despite margin pressure (adjusted operating margin down 70bps to 14.0%), earnings and cash flow comfortably fund the dividend.
Cash and leverage: Continued deleveraging and ample headroom on facilities (£310m committed) underpin dividend resilience.
Capital intensity: Ongoing estate investment (£36.1m) and disciplined M&A are balanced by strong operating cash flow; payout remains conservative vs adjusted EPS.

Capital Allocation and Support

Shareholder returns: Ongoing share buyback (up to £10m; £6.1m repurchased in-period; additional £2.2m post-period) incrementally enhances dividend affordability per share.
Investment: Estate capex of £36.1m and targeted acquisitions aim to drive future cash flows supporting a progressive dividend.
Refinancing: Post-period refinancing of a £50m term loan and maintained covenant headroom support ongoing dividend capacity.

Structural Changes and Notable Events

Acquisition: Completed purchase of Cubitt House (8 leasehold pubs; 9th in development) on 22/04/2026 for £29.4m (asset purchase). Potential to enhance earnings and future dividend capacity once integrated.
Listing move: Admission to the Main Market (28/04/2026) from AIM; could broaden investor base and reinforce a stable, progressive dividend profile.
Share buyback: Ongoing programme reduces share count and supports per-share metrics relevant to dividends.
Portfolio activity: Select disposals and continued estate investment; integration synergies from the prior City Pub Group acquisition largely realised, aiding margins.

Risks and Flags to Dividend Stability

Cost inflation: Ongoing increases in National Living Wage, National Insurance, and food inflation continue to pressure margins (already evident in a 70bps margin decline).
Consumer backdrop: Macro uncertainty and discretionary spend risks could temper like-for-like growth.
Lease exposure: Growth via leasehold acquisitions (Cubitt House) adds fixed-cost leverage; right-of-use liabilities £82.8m, interest costs £18.0m.
Capital demands: Concurrent estate capex, M&A and buybacks compete for cash; however, current cash generation and leverage indicate adequate headroom.
Property revaluation volatility: Non-cash valuation movements can affect reported earnings, though not cash dividend capacity.
Pension: Small net deficit (£0.9m) remains manageable but requires ongoing contributions.

Dividends Used in Calculation:

Ex-Dividend Date	Payment Date	Type	Amount	Currency
12/06/2025	17/07/2025	Final	11.53p	GBX
20/11/2025	05/12/2025	Interim	12.2200p	GBX

Total (Annual Dividends Per Share): 23.75p

Dividend Yield = Annual Dividends Per Share (23.75p) ÷ Share Price (770p) = 3.08%

Ex Dividend Date	Payment Date	Type	Amount	Currency
04/06/2026	15/07/2026	Final	12.2200p	GBX
20/11/2025	05/12/2025	Interim	12.2200p	GBX
12/06/2025	17/07/2025	Final	11.53p	GBX
21/11/2024	06/12/2024	Interim	11.53p	GBX
04/07/2024	02/08/2024	Final	10.88p	GBX
23/11/2023	08/12/2023	Interim	10.88p	GBX
08/06/2023	13/07/2023	Final	10.26p	GBX
17/11/2022	02/12/2022	Interim	10.26p	GBX
09/06/2022	07/07/2022	Final	10.26p	GBX
18/11/2021	03/12/2021	Interim	8.55p	GBX
21/11/2019	06/12/2019	Interim	10.57p	GBX

Year

Number of Shares:

Payment	Paid	Amount
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