Wandsworth-based Young’s, which operates nearly 300 pubs across the UK, said it would apply to join the main market of the London Stock Exchange as it targets eventual FTSE 250 eligibility
Young’s is looking to move to the FTSE 250(Image: Getty Images)
Young’s has emerged as the latest firm to announce its departure from London’s small-cap stock market as the pub operator targets entry into the FTSE 250.
The Wandsworth-headquartered company revealed it will seek admission to the main market of the London Stock Exchange, in a step 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 valuation of £450m puts it within touching distance of the approximately £500m threshold required for entry into London’s mid-cap FTSE 250 index.
“Our ambition is to move to the FTSE 250,” chief executive Simon Dodd told City AM. “We’re excited…we think the main market will deliver better things for us in the long term.”
Young’s stock climbed 0.9 per cent to 820p in early trading on Thursday after the exchange transition was announced. The shares have gained almost 10 per cent year-to-date.
“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 Mr 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 lost numerous listed companies over the last two years, with firms citing underwhelming valuations, limited liquidity and challenges securing capital from current shareholders. Whilst some have delisted to go private, others have transferred to alternative exchanges.
Nevertheless, AIM continues to attract a handful of new listings, including US toolmaker Power Probe, which joined the market last month.
Mr Dodd emphasised there was “no animosity with AIM” stating: “We have had a good 20 years.”
Young’s, which runs nearly 300 pubs nationwide, announced today that it recorded an 11.2 per cent rise in sales during the festive period.
This outperformed London-listed competitor Fuller’s, which reported 8.2 per cent sales growth over Christmas, and Wetherspoon, which posted an 8.8 per cent increase.
Young’s City Pub portfolio, acquired in late 2023 for £162m, delivered particularly strong results, with growth of 26 per cent across Christmas and Boxing Day.
Overall revenue across Young’s pub estate increased by 5.6 per cent during the 14 weeks ending 5 January.
