Fuller’s lfls up 5.3%, urges Starmer to reform biz rates

23-Jul-2024 - Last updated on 23-Jul-2024 at 08:37 GMT

16-week results: Fuller's has announced a like-for-like sales boost (the Harp pub in central London pictured)

Fuller, Smith & Turner (Fuller’s) has announced its like-for-like sales (lfls) are 5.3% up in the first 16 weeks of its financial year to 20 July and, as inflationary pressures ease, its margins are improving too.

The pubs and hotels business, which operates 178 managed businesses, with 1,009 boutique bedrooms and 154 Tenanted Inns, said since the year end, it has completed the sale of 37 non-core pubs to Admiral Taverns for a cash realisation of £18.3m and completed the sale of the Mad Hatter in Southwark for a total consideration of £20m.

Fuller’s said the sale of these properties has strengthened its balance sheet, reducing its underlying net debt to £92m, which provides the capacity to fund its ongoing share buyback programme and leaves the business well positioned to take advantage of appropriate acquisition opportunities.

Momentum continues

Chief executive Simon Emeny said: “I am delighted to see our sales growth momentum continue, particularly against the backdrop of easing inflation, which will help us to grow margins and profit, as well as revenue. You can feel the positivity across the business, with our team members working energetically to drive our continued success.

“We have had a strong start to the financial year and we look forward to the opportunities the future will bring. We have a new UK Government in place, and I urge Sir Keir Starmer to stand by his commitment to overhaul our archaic business rates system. The Labour Party has a clearly stated objective to grow the economy and the hospitality sector can be an excellent engine to help deliver that growth.

Riverside pub reopened

“With the continued commitment of our inspiring teams, we will take the company forward, grow the business, and deliver excellent returns for all our stakeholders.”

Earlier this month, Fuller’s reopened London pub, the Head of the River, on the Thames after a renovation.

General manager David Oram said at the time: “I’m delighted to reopen the Head of the River fully. Our beautiful riverside dining area, bar and garden reopened earlier in the spring and it’s been wonderful seeing so many people back dining and drinking with us. But now we can offer the full experience with newly refurbished bedrooms.”