Fuller’s posts ‘excellent results’ as upwards trend continues

13-Jun-2024 - Last updated on 13-Jun-2024 at 08:41 GMT

Future growth: Fuller's has completed or is on site at seven pubs in the past financial year

Fuller, Smith & Turner (Fuller’s) has delivered “excellent results” while latest like-for-like (lfl) sales for the 10 weeks to 8 June 2024 are up 4.4%.

On its current trading, the group said it had completed or on site at seven investment schemes since the start of new financial year, including the Astronomer in Liverpool Street and the Head of the River in Oxford and the company is in “a great position for future growth”.

The London-based pub operator announced revenue was up by 7% to £359.1m for the 52 weeks ended 30 March 2024 from £336.6m in 2023.

Other financial highlights included adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) £60.8m (FY23: £51.8m), adjusted profit before tax £20.5m (FY23: £12.7m) and statutory profit before tax £14.4m (FY23: £10.3m).

Food, drink and accom lfls up

Meanwhile, food lfl sales increased by 14.5%, drink lfl sales increased by 9.8 and accommodation lfl sales increased by 7.8%.

Fuller’s invested £27.2m into its pubs estate, including refurbs at the Rising Sun in the New Forest, the Windmill at Portishead, the Butcher’s Hook & Cleaver in Smithfield and the Forester in Ealing.

The business saw the transfer of 23 pubs from Managed Pubs and Hotels to Tenanted Inns, generating an incremental £1.0m profit in a full year while it agreed terms on the sale of the Mad Hatter in SE1, which will realise £20m of value – due July 2024 and agreed the sale of a portfolio of 37 non-core pubs to Admiral Taverns for £18.3m at a £1.6m premium to the gross asset value of £16.7m.

Fuller’s chief executive Simon Emeny said: “It has been a strong year for Fuller’s and I am pleased and proud of the progress we have made. All parts of the company have performed well – with like for like sales in our Managed Pubs and Hotels increasing by 11%, Tenanted Inns operating profit rising 4% and adjusted profit before tax rising 61% to £20.5 million.

“Fuller’s has delivered these excellent results in the past financial year despite the high inflationary environment. As of today, those inflationary pressures – especially in regard to food and energy – have reduced, which gives us additional confidence in the coming year.”

Leadership development programme

He added: “We have continued to build on this strong momentum with like-for-like sales in the first 10 weeks of the year rising by 4.4%. We have commenced a wide-ranging investment programme, with seven schemes already on site or completed since the start of the new financial year. Complementing this investment in our properties is continued investment in our people.

“We will be rolling out our leadership development programme to our support centre managers and Head Chefs and continuing to provide development opportunities to team members at all levels across the business.

“As a company, we are primed for further success and growth.

“With the solid financial foundation of a strong balance sheet and a first-class, predominately freehold estate of iconic pubs and hotels, combined with a team that has the ability and capacity to drive the business forward, we are confident and excited by the opportunities the future will bring.”