Fuller, Smith & Turner H1 revenue up 11%

Brewer Fuller, Smith & Turner posted a rise in first-half pre-tax profit as revenue grew, thanks in part to a strong performance in its managed pubs and hotels.

In the 26 weeks to 24 September, adjusted pre-tax profit was up 6% to £22.8m on revenue of £197.6m, up 121% from the same period last year.

Adjusted earnings per share increased 6% to 32.44p and the company lifted its interim dividend by 5% to 7.25p.

Like-for-like sales in managed pubs and hotels grew 3.4%, supported by further growth in food.

Meanwhile, craft beer brands made a solid contribution, with strong growth for The Fuller’s Beer Company and operating profit before exceptional items up 8%, although total beer and cider volumes fell 4%.

Fuller said the impact of higher business rates and the National Living Wage, along with uncertainty about the UK’s exit from the European Union, “make for challenging times ahead”.

Chief executive Simon Emeny said: “We have had a good start to the year and our managed pubs and hotels, which represent the largest share of our profits, have yet again led the way with a rise in like for like sales that has outperformed the market.

“Trading since the period end has been good and as expected, with comparisons to last year being heavily influenced by the 2015 Rugby World Cup. For the first 33 weeks, like-for-like sales in our managed pubs and hotels grew 2.6%, tenanted inns like-for-like profits declined 2% and Fuller’s Beer Company volumes fell 5%.”

At 0910 GMT, the shares were up 1% to 1,000p.