Fuller’s Adjusted Profit Jumps 25%, Outlook Ahead of Forecasts

Fuller, Smith & Turner (LON: FSTA), the London-listed pubs and hotels group, reported a 25% rise in half-year adjusted profit before tax to £28.2m and said full-year adjusted profit should beat market expectations. The shares rose in early trading.

The shares were quoted at 834.3p at 8.34am today, up 2.24% from yesterday’s 816p close. The quote is delayed rather than live. That sits just below Thursday’s 840p close, the highest in a series running since the start of May.

For the 26 weeks to the 26th of September, adjusted profit before tax, excluding one-off items, was £28.2m, up from £22.5m a year earlier. Revenue rose 6.5% to £220.9m, adjusted earnings per share rose 33% to 39.81p, and the interim dividend rose 6% to 8.35p.

Fuller’s said it now expects adjusted profit before tax for the full year to beat current market expectations, meaning analysts’ consensus forecasts. It gave no figure. Like-for-like sales, from sites open in both periods, are up 5.8% over the first 32 weeks, and Christmas bookings are 16% ahead.

The half benefited from conditions that may not repeat. Management estimates the exceptional summer weather and the football World Cup added about £2m to £3m of profit.

The group also bought 12 pubs for £37.5m. Net debt excluding leases, meaning borrowings less cash, was £140.2m against £138.3m a year earlier, but is guided to about £190m to £195m by year-end.

Executive Chairman Simon Emeny put the outlook in firm terms:

We are delighted with our progress so far in this financial year and, with such a strong start, we are confident that we will exceed current market expectations for the full year.

Simon Emeny, Fuller, Smith & Turner

The shares had already climbed 16% from 702p on the 7th of October to yesterday’s close, so the results arrive with the stock near the top of its recent range.