15 JUNE 2023
FULLER, SMITH & TURNER P.L.C.
(“Fuller’s”, the “Company”, or the “Group”)
Financial results for the 53 weeks to 1 April 2023
Return to strong like for like growth
Financial and Operational Highlights
| 53 weeksended1 April | 52 weeks ended26 March | ||
| 2023 | 2022 | ||
| £m | £m | ||
| Revenue and other income | 336.6 | 253.8 | |
| EBITDA1 | 51.8 | 44.3 | |
| Adjusted profit before tax2 | 12.7 | 7.2 | |
| Statutory profit before tax | 10.3 | 11.5 | |
| Basic earnings per share3 | 12.98p | 11.59p | |
| Adjusted earnings per share3 | 16.10p | 9.79p | |
| Dividend per share | 14.68p | 11.31p | |
| Net debt excluding lease liabilities4 | 132.8 | 131.9 | |
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. Adjusted EPS is calculated using earnings attributable to equity shareholders after tax excluding separately disclosed items. Basic EPS includes separately disclosed items.
4 Net debt excluding lease liabilities comprises cash and short-term deposits, bank overdraft, bank loans, debenture stock and preference shares.
· Revenues grew 33% to £336.6 million (FY2022: £253.8 million) as the business recovered from the impact of covid-related restrictions on trade
· Like for like sales in the year grew by 17.5% compared to prior year, with Central London growing by 40.1%
· Adjusted profit before tax increased by 76% to £12.7 million (FY2022: £7.2 million)
· Net debt at £132.8 million (FY2022: £131.9 million) with cash generated by the business funding investment in the estate and returns to shareholders
· Directors’ valuation of the total property portfolio in May 2022 at £995.6 million, approximately £400 million above our current book value – giving implied adjusted net asset value per share of £14.07
· Total dividend of 14.68p declared, representing a 30% increase on last year
· Board to keep further share buybacks under review in line with its capital allocation framework.
Strategic Highlights
· Clear long-term strategy, with all elements contributing to growing sales momentum and profitability
· Maintained investment in the existing estate, with £25 million invested in the period to enhance capital values and drive further growth
· Maximising our pubs’ potential through proactive portfolio management to ensure all pubs are operated to deliver a great customer experience, while optimising our returns
o Three new pubs opened during the year – The Rising Sun in the New Forest, The Willow in Bourton-on-the-Water, and The Queen’s Arms at Heathrow Terminal 2
o Four pubs transferred from Managed operations to Tenanted Inns in the year, with a further 23 identified, of which four transfers have already completed
o Small number of pubs earmarked for disposal
o Sale agreed on The Mad Hatter, Southwark, which will realise £20 million in value and a profit on disposal of £17 million
· Continued investment in our people to develop the leaders of the future and deliver best in class service for our customers
· Dawn Browne, People & Talent Director, promoted to Main Board from 3 July 2023
· Implementing a wide range of energy reduction initiatives as part of our Life is too good to waste programme.
Current Trading
· Strong sales momentum with like for like sales for the 10 weeks to 10 June 2023 up 13.9%
· Reopened The Admiralty, our iconic pub on Trafalgar Square, following a major fire last July and completed £2.5 million refurbishment at The Sanctuary House, near Westminster Abbey
· Low level of vacancies across the estate and strong pipeline of home-grown General Managers
· Delivering on our long-term strategy, purpose and vision to grow our business in a sustainable manner.
Chief Executive Simon Emeny said:
“We have made good progress in the last year, with continued investment in our people and properties, providing the perfect post-covid springboard for the future. Looking forwards, that future looks very positive. We continue to build on our five strategic pillars, investing in the areas that have the greatest impact on our business and growing our profitability. We live by our values and our culture, and despite having had a lot to contend with over the last year – with interruptions from tube and train strikes and high-cost inflation in energy, food and wages – our teams across the estate are successfully delivering experiences that nourish the soul.
“We are delighted that our sales momentum has continued into the new financial year and like for like sales for the first 10 weeks are up 13.9%. Our recent investments at The Willow in Bourton-on-the-Water, The Sanctuary House by Westminster Abbey, and The Admiralty in Trafalgar Square are outperforming our expectations, and we have exciting projects planned for this financial year at The Counting House in the City, The Forester in Ealing, and The Rising Sun near Bashley in the New Forest.
“I am more optimistic about the future than I have been since before the pandemic. While the well-documented inflationary environment has been a challenge, there are positive signs on the horizon. In addition, we are ever hopeful of a resolution to the ongoing train strikes to allow us to further benefit from the increasing numbers of office workers and international tourists returning to the Capital.
“We have a clear pathway to further growth based on enhancing profitability from our underlying business, proactively managing our property portfolio to ensure we are getting the best returns and continuing to seek out appropriate acquisitions.
“I am excited by the opportunities ahead, optimistic about the future, and confident in our ability to deliver excellent service to our customers, careers for our people and returns for our shareholders.”
-Ends-