Young’s ditches AIM as pub chain eyes FTSE 250 inclusion
Young’s has become the latest company to unveil plans to quit London’s small-cap stock market as the pub giant sets its sights on inclusion into the FTSE 250.
The Wandsworth-based business said it will apply to join the main market of the London Stock Exchange, in a move which it said will “enhance the company’s corporate profile and appeal, including facilitating investment in the company by a broader group of UK and global institutional shareholders”.
Young’s market capitalisation of £450m means it is not far off the roughly £500m boundary for inclusion into London’s mid-cap FTSE 250 index.
“Our ambition is to move to the FTSE 250,” chief executive Simon Dodd told City PM.
“We’re excited…we think the main market will deliver better things for us in the long term.”
Young’s shares rose 0.9 per cent to 820p early on Thursday morning following news of the stock exchange move. The stock is up by nearly 10 per cent since the start of the year.
“Over the last two decades, AIM has provided a highly supportive environment for Young’s, helping us to realise our growth ambitions and secure vital funding, especially during the difficult period of the pandemic,” said chief executive Simon Dodd.
“We are very proud of the growth we have achieved and believe a move to the main market is a natural and exciting next step for Young’s, and one that will open the door to a wider group of investors.”
LSEG’s AIM market has shed dozens of constituents over the past two years as companies bemoan poor valuations, low levels of liquidity and difficulty raising cash from existing shareholders. Some members have delisted to become private companies while others have moved over to other exchanges. But AIM continues to welcome a small number of new entrants, such as US toolmaker Power Probe which floated last month.
But Dodd insisted there was “no animosity with AIM” adding: “We have had a good 20 years.”
Young’s toasts strong Christmas sales
Young’s, which operates nearly 300 pubs across the UK, today said it saw a 11.2 per cent jump in sales over the Christmas period.
That compares favourably to London-listed rival Fuller’s, which saw 8.2 per cent sales growth over Christmas, and Wetherspoon, which was up 8.8 per cent.
Young’s City Pub estate, which it acquired in late 2023 for £162m, performed exceptionally well, with growth of 26 per cent across Christmas and Boxing Day.
Total revenue across Young’s estate of pubs was up 5.6 per cent over the 14 weeks to 5 January.