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Fuller, Smith & Turner, the west London brewer and pub owner, bought no pubs at all last year and in December lost to Young’s in bidding for Geronimo Inns, notes the Tempus column in the Times. This summer, it lost another bidding auction, to buy the Capital Pub Company, to Greene King this time. The battle became distinctly bad-tempered, with the target management making it clear that they would prefer to be bought by anyone but Fuller’s. Instead, Fuller’s is taking a longer route, buying individual pubs or small numbers in the same deal. It has acquired ten so far over the past six months, including the famous Coach & Horses in Soho and The Lamb & Flag in Covent Garden, the last for an undisclosed but apparently generous sum. Yesterday the company added another five new pubs from Marston’s in a deal worth £16 million, including another couple of London landmarks, The Hand & Flower in Olympia and The Wellington in Waterloo. Also on the list, The Pavilion End in the City. It brings the total estate to 365. The shares are trading on 17 times’ this year’s earnings; high enough, given the difficult times in the market, says the paper.
http://www.investegate.co.uk/Article.aspx?id=20110629141928PB646
Certainty for Capital shareholders · The possible offer of 200 pence per share1 represents a very attractive price for Capital's shareholders, being a 53% premium to the share price immediately prior to Fuller's initial approach. · The proposal by Fuller's would provide Capital shareholders with the certainty of a cash exit in the near term. Fuller's reiterates that it would like to work towards a recommended transaction and establish a constructive dialogue with Capital and continues to believe that it is in the interests of Capital's shareholders for the Board of Capital to engage with Fuller's in order to deliver an attractive cash offer in a timely manner. There can be no guarantee that a formal offer of 200 pence per Capital share1 will be announced by Fuller's even if the pre-conditions to announcing such offer, as stated in Fuller's announcement of 17 June 2011, are satisfied or waived. Fuller's reserves the right to make an offer on less favourable terms than those set out in this announcement in the circumstances referred to in its announcement of 17 June 2011.
Possible Offer for The Capital Pub Company PLC ("Capital") This is an announcement falling under Rule 2.4 of the City Code on Takeovers and Mergers (the "Code") and does not constitute an announcement of a firm intention to make an offer under Rule 2.5 of the Code. Accordingly, shareholders in The Capital Pub Company PLC are advised that there can be no certainty that any formal offer for The Capital Pub Company PLC will be forthcoming, even in the event that the pre-conditions in the announcement dated 17 June 2011 are satisfied or waived. Fuller's notes the announcement made yesterday by Capital regarding its final results for the year ended 26 March 2011, its current trading and prospects and the possible offer of 200 pence per share1 (including the proposed final dividend of 2.25 pence per share announced yesterday) announced by Fuller's on 17 June 2011.
http://www.investegate.co.uk/Article.aspx?id=201106220700108660I
You wont find a shoddy Fullers Pub. Quality in everything they do- and how refreshing is that these days. The beer is very good too.................
Southeast focus lifts Fuller's Date: Friday 10 Jun 2011 LONDON (ShareCast) - Economic resilience in the southeast of England helped brewer and pub operator Fuller, Smith and Turner post a strong rise in profits in the year to 2 April. The company, whose pubs only stretch as far north as the Midlands, saw adjusted pre-tax profits rise by 10% from the previous year to £29.3m on revenues up 6% to £241.9m. The company also said it got off to a strong start to the new financial year, helped by the Royal Wedding and other bank holidays as well as the warm weather. “With wages in the UK running behind inflation, our customers' incomes are being squeezed and we will have to work hard in the current year and beyond to earn their custom,” the company said. “We believe, however, that as the consumer is forced to become ever more discerning, our high quality offer of leading beer brands and well invested, often historic, pubs will be increasingly attractive and position us well for growth.” The company reduced its net debt by £19.2m to £88.5m during the year. The total dividend of 11.8p is up 7% on the previous year. ---
Profit up, divi up, debt down - cant be bad in the current climate
CEO "I am pleased to announce a very strong set of results for the financial year driven by an excellent performance in our Managed Pubs and Hotels. Our revenues grew by 6% to £241.9 million (2010: £227.7 million) and adjusted profit before tax (excluding exceptional items) increased by 10% to £29.3 million (2010: £26.6 million). Our adjusted earnings per share rose by 9% to 37.36p (2010: 34.19p). "Over the last five years our adjusted earnings per share have grown 71% demonstrating the Company's long term consistent out performance of the market. During this period the UK economy has endured the deepest trough since the Second World War and has still not recovered to its pre-recession level. "We have made a good start to the new financial year in what has been a very unusual first nine weeks of trading with a Royal Wedding, five bank holidays and generally very good weather. Like for like sales in our Managed Pubs and Hotels for the nine weeks to 4 June 2011 have grown by 6.8%. For the same period total beer volumes are 1% higher than last year, with continued weakness in the UK On Trade again offset by growth elsewhere, particularly Exports and the Off Trade. "With wages in the UK running behind inflation, our customers' incomes are being squeezed and we will have to work hard in the current year and beyond to earn their custom. We believe, however, that as the consumer is forced to become ever more discerning, our high quality offer of leading beer brands and well invested, often historic, pubs will be increasingly attractive and position us well for growth. We have the financial strength to invest further in new opportunities and should benefit from the "London factor" as the calendar turns towards 2012.
Corporate Progress · Another very strong set of results · Managed Pubs and Hotels profits6 up 15% with like for like sales up 3.9% · Tenanted Inns profits6 level · Total Beer volumes up 2% · Net Debt to EBITDA reduced to 1.9 times · Since year end four pubs acquired and major brewery investment underway
Financial results for the 53 weeks ended 2 April 2011 Financial Performance · Revenue up 6% to £241.9 million (2010: £227.7 million) · Adjusted profit before tax1 up 10% to £29.3 million (2010: £26.6 million) · Profit before tax up 16% to £31.0 million (2010: £26.8 million) · EBITDA2 of £46.6 million (2010: £43.6 million) · Adjusted earnings per share3 up 9% to 37.36p (2010: 34.19p) · Basic earnings per share4 up 28% to 44.12p (2010: 34.37p) · Final dividend4 increased by 8% to 7.05p (2010: 6.50p5)
http://www.investegate.co.uk/Article.aspx?id=201106100700082054I
If you had bought shares in West London brewers Fuller Smith and Turner (FSTA) 10 years ago, you would have seen the value of your investment multiply tenfold. The brewer is a steady, rather than spectacular, performer, but there is no doubting the quality of the management or the products. Profits are expected to rise from £26.8 million to £28 million in the year to March and to keep on rising for the next couple of years. The shares are not cheap - selling on a forward earnings multiple of 16 and yielding a smidgeon under 2%. Shares to buy, hold and sell Fri, 20/05/2011 - 17:00 | Jim Levi
Things haven't got any easier since their update in July, but Fullers has proved resilient in the past and analysts expect some decent figures tomorrow against a tough backdrop. One to keep an eye on.