Fuller’s has seen a strong return to like-for-like growth, with CEO Simon Emeny saying he is more optimistic about the future than since before the pandemic.
The premium pub operator grew revenues by 33% to £336.6m (FY2022: £253.8m) 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% as the capital saw a strong bounceback.
Adjusted profit before tax increased by 76% to £12.7m (FY2022: £7.2 million). EBITDA was £51.8m.
Net debt is £132.8m (FY2022: £131.9m) 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 is £995.6m, approximately £400m above its current book value - giving implied adjusted net asset value per share of £14.07.
The board says it will keep further share buybacks under review in line with its capital allocation framework.
During the 53 weeks to 1 April 2023, Fuller’s invested £25m, with three new pubs opening- The Rising Sun in the New Forest, The Willow in Bourton-on-the-Water, and The Queen’s Arms at Heathrow Terminal 2.
Four pubs were transferred from managed operations to tenanted inns in the year, with a further 23 identified, of which four transfers have already completed
A small number of pubs have been earmarked for disposal, with a sale agreed on The Mad Hatter, Southwark, which will realise £20m in value and a profit on disposal of £17m.
Dawn Browne, people & talent director, will be promoted to main board on 3 July 2023.
In current trading, Fuller’s reports strong sales momentum with like-for-like sales for the 10 weeks to 10 June 2023 up 13.9%.
The Admiralty in Trafalgar Square reopened following a major fire last July, while a £2.5m refurbishment was completed at The Sanctuary House, near Westminster Abbey.
Chief executive Simon Emeny said the good progress and investment in people and property had provided the “perfect post-covid springboard for the future”.
“Looking forwards, that future looks very positive,” he said.
“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, The Sanctuary House and The Admiralty are outperforming our expectations, and we have exciting projects planned for this financial year at The Counting House, The Forester, and The Rising Sun.
“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.”
