Fuller, Smith & Turner FY profit flat
Pub group Fuller, Smith & Turner said on Thursday that full-year profits were flat, with a "good" performance from its managed pubs.
In the year to 28 September, adjusted pre-tax profit was steady at £17.9m, while revenue rose 6% to £174.8m. Adjusted earnings per share ticked up 1% to 26.17p and the interim dividend was held at 7.8p a share.
The company said it made a £164.5m profit from the sale of the Fuller’s beer business to Asahi Europe.
Managed pubs and hotels saw like-for-like sales growth of 2.7%, down from 4.1% growth in the first half. Meanwhile, tenanted revenue was up 3% but LFL profits fell 3% versus a 4% increase in the first half.
In the 36 weeks to 7 December 2019, LFL sales in its managed pubs and hotels rose 2.1%, with total sales up 5.1%. In the tenanted inns business, LFL sales were down 2%.
The company said these were "solid results in the context of consumer unease reflecting the ongoing political and Brexit uncertainty".
Chief executive Simon Emeny said: "The first half of this year has seen the biggest transformation in Fuller's history. It has been a time of unprecedented change - and not without its challenges - but we have made good progress and we have a clear view and plan for the next steps in our journey from vertically integrated brewer and retailer to focused premium pubs and hotels business."
At 1220 GMT, the shares were down 0.4% at 926p.
Broker Peel Hunt upped its rating on the shares to ‘add’ from ‘hold’ and lifted the price target to 1,050p from 950p after the results.
"We believe there is upside to both LFL sales and margin forecasts over the next two years, as well as expansion if Fullers chooses to utilise its £120-150m of financial firepower. Reflecting this, recent price weakness and a true asset value that we believe is well above £10 a share, we are upgrading our recommendation," it said.