Profits up at Fuller’s pub company despite ‘unprecedented influences on business’

24/11/2017 - 10:43
Fuller, Smith & Turner, the British pub company trading under the name Fuller’s, has reported positive financial results across the board for the 26 weeks to 30 September.

With increase in revenue, pre-tax profit, EBITDA and earnings per share, and a "particularly positive" showing from its managed pubs, chief executive Simon Emeny said the group’s key measures are “moving in the right direction” despite the influence of cost pressures such as business rates the National Living Wage.

Fuller’s reported a 6% increase in revenue to £209.3 million against the same period last year and a boost of 4% in adjusted profit to £23.8 million.

The performance of the company’s managed pubs and hotel estate helped lift overall numbers as it delivered a profit of 6% driven by like-for-like sales growth of 3.6%.

Operating profit in its tenanted inns divison was up 0.1% on the year before, despite the sale of 11 pubs during the period

Emeny said: “I am delighted to be reporting good financial figures with all the group’s key measures moving in a positive direction. This growth has been driven by our managed pubs and hotels, which generate the largest share of our turnover and profit and have once again outperformed the market.

“The last six months have seen some unprecedented influences on the business, not not only in our particular industry, but in the context of the wider UK economy and global political scene.

"I cannot remember a time when we have faced such an array of additional cost pressures, particularly in our managed pubs, starting with the 26% rise in business rates. The pub sector is now responsible for 2.8% of the total business rates bill, despite only generating 0.5% of total turnover.

"Over and above this increase, we have met with rises in the Apprenticeship Levy and National Living Wage rates, but in spite of this, we have continued to grow, delivering consistently strong returns for our shareholders.

"This is due to a clear, shared vision and a commitment to delivering an outstanding customer experience across the business."

EBITDA performed in line with adjusted profit, increasing by 4% across the group while interim dividends for shareholders were also up 4% to 7.55p.

The company also decreased its net debt by £1.3 million to £201.5 million.

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