Financial results for the 26 weeks ended 27 September 2014 show Fuller’s with strong like-for-like sales up 6.5% in Managed Pubs and Hotels, Food Sales up 14%, Revenue up 10%, Profit up 8%.
The positive results led to Douglas Jack of Numis commenting:
“With managed LFL sales up 6.8%, tenanted LFL profits up 3% and brewing volumes up 4% after 33 weeks, we are upgrading our forecasts by 2% (2015E PBT: from £35.3m to £36.0m; consensus £35.3m). Due to trading and expansion momentum, we believe forecast risk remains on the upside.”
Commenting on the results, Simon Emeny, Chief Executive of Fuller’s, said:
“It has been an exciting six months for the Company and I am pleased to report a strong operational performance in our existing business combined with striking new long term investments for the future.
“Our business has a clear vision and long term strategy focusing on recruiting and developing the best people, enhancing our premium drinks portfolio, continuous investment in our estate and developing our range of freshly‐made seasonal dishes. The result of this strategy is another significant increase in sales and profit.
“We have seen a positive start to the second half. The Company is in robust health and we face the future with optimism and confidence. Our high quality predominantly freehold estate, passionate team and healthy balance sheet put us in an excellent position to continue to deliver good returns for the Company and our investors. ”
Financial Highlights
- Adjusted earnings per share up 12% to 27.67p (2013: 24.79p)
- Adjusted profit before tax up 8% to £19.6 million (2013: £18.1 million)
- Revenue up 10% to £161.6 million (2013: £146.3 million)
- EBITDA up 9% to £30.7 million (2013: £28.1 million)
- Interim dividend up 10% to 6.40p (2013: 5.80p)
- Net debt to EBITDA 2.6 times (2013: 2.5 times)
Operational Indicators
- Strong like for like sales growth of 6.5% in Managed Pubs and Hotels
- Tenanted Inns like for like profits increased by 5%
- Total beer and cider volumes rose by 6%
Strategy Update
- Acquired three new managed freehold sites – The Bull Hotel in Bridport, The Harp in Covent Garden and The Windmill in Portishead
- Opened London’s Pride at Heathrow, Terminal 2
- Good pipeline of openings to come during the rest of the year
- Acquired 51% of The Stable, craft cider and gourmet pizza business, and opened a seventh site with up to four more planned for the next 12 months
- London Pride activity is gaining momentum and wider portfolio of premium brands continues to drive new accounts
Current Trading
- Opened new flagship site, The Admiralty on Trafalgar Square
- One Over the Ait, a new build site at Kew Bridge, opens 21 November 2014 with two more riverside pubs due to open
- Completed purchase of a new leasehold site in Plymouth for The Stable
- Managed Pubs & Hotels like for like sales growth for the first 33 weeks up 6.8%
- Tenanted like for like profits up 3% during first 33 weeks
- Total beer and cider volumes up 4% during first 33 weeks