Young’s has reported revenue for the year to 31 March rose 25 percent from £388.8m to £485.8m, with operating profit rising 24.6 percent, from £57.3m to £71.4m, despite a marked increase in costs.

The positive performance follows the £162m takeover of City Pub Group in late 2023, which added 50 pubs to the company’s estate as well as 200 hotel rooms, helping boost total sales by 5.7 percent.

“I am delighted to announce another excellent set of results, reflecting the strength of the Young’s strategy,” said CEO Simon Dodd.

“While we remain mindful of the headwinds facing consumers and the wider issues that our industry will encounter, we are confident our premium, well-invested, predominantly freehold pub estate will continue to deliver profitable growth.”

Speaking to This is Money, Dodd said that the acquisition of City Group “accelerated our growth by about five years,” and with £47m invested last year in refurbishing and improving the company’s 277 pubs, he added that Young’s response to rising costs will be “invest our way out of it.”

The company will also aim to avoid blanket price increases, with Dodd adding: “We will do it on a pub-by-pub basis, some pubs won’t see an increase and some pubs will charge a little bit more.”