FULLER, SMITH & TURNER P.L.C.
(“Fuller’s”, the “Company”, or the “Group”)
Financial results for the 26 weeks to 30 September 2023
Strong progress as revenues and profits continue to rise
Financial and Operational Highlights
| Unaudited | Unaudited | Audited | |||
| 26 weeksended30 September | 26 weeks ended24 September | 53 weeks ended1 April | |||
| 2023 | 2022 | 2023 | |||
| £m | £m | £m | |||
| Revenue and other income | 188.8 | 168.9 | 336.6 | ||
| EBITDA1 | 34.8 | 28.9 | 51.8 | ||
| Adjusted profit before tax2 | 14.5 | 9.8 | 12.7 | ||
| Statutory profit before tax | 14.9 | 10.7 | 10.3 | ||
| Basic earnings per share3 | 17.65p | 13.13p | 12.98p | ||
| Adjusted earnings per share3 | 17.16p | 12.48p | 16.10p | ||
| Dividend per share | 6.63p | 4.68p | 14.68p | ||
| Net debt excluding lease liabilities4 | 129.4 | 129.2 | 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.
Financial and Operational Highlights (cont)
· Revenue up 12% to £188.8 million (H1 2023: £168.9 million), driven by strong performances across the estate
· Like for like sales in H1 up 12.7%, demonstrating market outperformance, substantially ahead of the industry’s Coffer CGA Business Tracker
· Adjusted profit before tax increased by 48% to £14.5 million (H1 2023: £9.8 million) – demonstrating strong profit conversion despite inflationary challenges
· Net debt is at £129.4 million (H1 2023: £129.2 million) with cash used to enhance the estate and finance shareholder returns
· Interim dividend increased in line with earnings to 6.63p (H1 2023: 4.68p), representing a 42% increase on last year
· Completed buy back of one million ‘A’ shares at an average price of 580p, and today announcing our intention to buyback an additional one million ‘A’ shares.
Strategic Highlights
· An excellent customer experience, resulting in like for like sales growth across all areas during the first half
o Food sales up 15.5%
o Drink sales up 10.9%
o Accommodation sales up 13.4%
· Continuing to invest for the long-term
o Enhancing the estate with £9.0 million capital investment
o Significant pipeline of investments planned
o Increased investment in our people, including new leadership training programme for all general managers
o Deployment of numerous ESG initiatives as part of our Life is too good to waste programme
· Effective proactive portfolio management with 21 of 23 pubs earmarked for transfer from managed to tenanted completed – remaining sites will complete imminently
· Further strengthening of the Balance Sheet, with reduced leverage, and headroom for acquisitions to drive long-term growth.
Current Trading
· Like for like sales for the 32 weeks to 11 November 2023 up 11.7%
· Primed for a strong Christmas with bookings already 11% ahead of prior year.
Chief Executive Simon Emeny said:
“We have had a strong start to the year – delivering excellent financial results and building a superb platform for future growth. While there are still a number of macro-economic elements to navigate, certain external factors are moving in our favour with office workers continuing to return to their desks and the City becoming a seven day operation with increased leisure spend at the weekend.
“There has been a welcome return of major events. Customers are increasingly seeking premium experiences when they are spending their money, and we have the benefit of the lucrative international tourist trade to come with inbound tourism still below pre-covid levels.
“These factors play to our strengths which, combined with our teams’ operational excellence, have resulted in our like for like sales rising 12.7% from the prior year – outperforming the market and well ahead of the industry’s Coffer CGA Business Tracker. There is demonstrable momentum and positivity in the business, we have an amazing group of dedicated team members, excellent leaders, and a keen focus on continuing to grow profitable sales using all the levers available to us.
“We have continued with our strong progress since the period end, with like for like sales for the first 32 weeks of the year growing by 11.7%. Trading in the City continues to grow and although we cannot rule out further tube or train strikes, we are looking forward to a good Christmas with bookings currently 11% ahead of last year.
“Our capital investment programme for the year will see us undertaking a number of large projects across the estate during the remainder of this financial year, enhancing our iconic pubs and hotels. We will also continue to invest in further development for our exceptional team members including the roll out of a new online training platform, to support our face to face learning, that will increase engagement.
“Fuller’s has a long-term vision, strong values and a clear strategy – all underpinned by our predominately freehold estate of iconic pubs in fantastic locations. While there is still a challenging economic environment to navigate, we have had a strong first half and with exciting plans in the pipeline, we are looking forward to the second half of the year with confidence.”
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