Fuller’s has returned to growth, with adjusted profits before tax of £7.2m, from a turnover of £253.8m.
Chief executive Simon Emeny highlighted the “difficult circumstances” of the performance, which covered the 52 weeks to 26 March 2022, a period significantly impacted by closures, restrictions and work from home guidance.
More recently, in the first 10 weeks of the new financial year, total sales were up 4% on pre-pandemic levels and are up 130% on the same period last year.
On a like-for-like basis, excluding closed periods, sales in the first 10 weeks of the year are up 21.4% on last year.
During the financial year, net debt excluding leases was reduced to £131.9m, with headroom for future growth in place with new four-year £200m bank facilities
A new Directors’ valuation of the total property portfolio puts at £995.6m - approximately £400m above the current book value, which implies an adjusted net asset value per share of £13.80.
Fuller’s will return to its dividend policy with a proposed final dividend of 7.41p in addition to the interim dividend of 3.90p paid earlier in the year.
Strategic highlights include the delivery of a digital transformation project, a central finance system, and a recruitment platform.
The pub company maintained capital investment in the estate, with £26m invested in the year to enhance capital values and drive growth.
Chief executive Simon Emeny said as a company, Fuller’s had used the last two years wisely.
“While steering the business through challenging trading conditions, we have also completed a number of strategic projects that will deliver benefits over the coming years,” he said. “We have successfully honed our offer, completed a digital transformation project, rolled out a new central finance system, delivered an employer brand and new recruitment platform. We have also refined our branding and reviewed and evolved our long-term strategy.”
Emeny said some of Fuller’s key sites were the worst affected during the pandemics, but that the company had built a balanced business to navigate evolving consumer trends and behaviour.
“The current year has started well. We welcome the gradual return of workers to the City and tourists to Central London, which is now underway, and we are seeing steady growth in our total weekly sales, which will have a positive impact in FY2023. Momentum in the City and Central London continues to build, and we are confident that we will see the benefits of our estate’s composition come into play.”
Market conditions remain challenging with fragile consumer confidence and well-documented high inflationary pressures, Emeny said.
“Our premium offering provides some protection from inflation, however we are certainly not immune from its effects. In common with our peers, we have seen significant increases in food and utility costs and are proactively working with our suppliers, and actively managing our offering, to mitigate the effects of inflation without impairing the customer experience.”
Despite a “volatile year of highs and lows” Fuller’s is starting the new financial year “on a high”.
“We may be facing some bracing headwinds, especially around energy and inflation, but we are well placed to tackle the issues with clear measures and solutions in place,” Emeny said.
“The great British pub has always been, and will always be, an affordable treat and has proved its resilience over time with its position at the very heart of the communities we serve. With an amazing team of people, great pubs and a clear strategy, we look forward to the future with confidence and excitement.”
