FULLER, SMITH & TURNER P.L.C.
(“Fuller’s”, the “Company”, or the “Group”)
A year of excellent progress
Financial and Operational Highlights
| 52 weeksended30 March | 53 weeksended1 April | ||
| 2024 | 2023 | ||
| £m | £m | ||
| Revenue and other income | 359.1 | 336.6 | |
| Adjusted EBITDA1 | 60.8 | 51.8 | |
| Adjusted profit before tax2 | 20.5 | 12.7 | |
| Statutory profit before tax | 14.4 | 10.3 | |
| Basic earnings per share3 | 15.16p | 12.98p | |
| Adjusted earnings per share3 | 24.48p | 16.10p | |
| Dividend per share3 | 17.75p | 14.68p | |
| Net debt excluding lease liabilities4 | 133.1 | 132.8 | |
All figures above are from continuing operations.
1 Earnings before interest, tax, depreciation, amortisation, profit on disposal of property, plant and equipment, and separately disclosed items.
2 Adjusted profit before tax is the profit before tax excluding separately disclosed items.
3 Per 40p ‘A’ or ‘C’ ordinary share. Basic EPS is calculated using earnings attributable to equity shareholders after tax including separately disclosed items. Adjusted EPS excludes separately disclosed items.
4 Net debt excluding lease liabilities comprises cash and short-term deposits, bank overdraft, bank loans, debenture stock and preference shares net of debt issue costs.
Financial and Operational Highlights (cont)
· Revenue up 7%, against a 53-week year, to £359.1 million (FY2023: £336.6 million), driven by strong performances across the estate
· Like for like sales up 11.0%, significantly outperforming the industry’s CGA RSM Hospitality Business Tracker on average by four percentage points
· Strong profit conversion, with adjusted profit before tax increased by 61% to £20.5 million (FY2023: £12.7 million)
· Operating cash flow used to fund estate enhancements and finance shareholder returns in the form of dividends and share buybacks – net debt stable at £133.1 million (FY2023: £132.8 million)
· Total dividend increased by 21% to 17.75p (FY2023: 14.68p)
· Bought back three million ‘A’ shares since September 2022, with a further one million ‘A’ shares in progress since March 2024. Today we announce our intention to buy up to a further two and a half million ‘A’ shares – bringing the total number of shares repurchased to 6.5 million shares.
Strategic Highlights
· An excellent year for the Company, with strong like for like sales and volume growth across all areas of the business:
o Food like for like sales increased by 14.5%
o Drink like for like sales increased by 9.8%
o Accommodation like for like sales increased by 7.8%
· Invested £27.2 million in our existing estate of iconic properties, including transformational schemes at The Rising Sun in the heart of the New Forest, The Windmill at Portishead, The Butcher’s Hook & Cleaver in Smithfield, and The Forester in Ealing
· Completed the roll out of our Lead Your Way programme to all General Managers – demonstrating our commitment to develop our people
· Continued proactive management of the estate to enhance shareholder value:
o Transferred 23 pubs from Managed Pubs and Hotels to Tenanted Inns, generating an incremental £1.0 million profit in a full year
o Agreed terms on the sale of The Mad Hatter in SE1, which will realise £20 million of value – due July 2024
o Agreed sale of a portfolio of 37 non-core pubs to Admiral Taverns for £18.3 million, at a £1.6 million premium to the gross asset value of £16.7 million.
Current Trading
· Good sales momentum continuing, with like for like sales for the 10 weeks to 8 June 2024 up 4.4%
· 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
· Company in a great position for future growth.
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 last 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.
“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. We will continue with our share buyback programme, and we will benefit from the sale of The Mad Hatter in July 2024 for a total consideration of £20 million, and £18.3 million from the sale of 37 non-core pubs to Admiral Taverns.
“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.
-Ends-