Fuller, Smith, & Turner Well Set For Future Following Beer Disposal

(Alliance News) - Brewer Fuller Smith, & Turner PLC on Thursday reported a strong annual performance in its Managed Pubs & Hotels business.

Sales for the 52 weeks to March 30 in the unit rose 4.9% like-for-like, accelerated from 2.9% growth the year prior. Tenanted Inns also did well, with like-for-like operating profit up 1%, though the year before, it had risen 3%.

Fuller's revenue for the year rose 7% to GBP431.1 million, with pretax profit falling 40% to GBP26.1 million. This was due to previously disclosed costs of GBP17.1 million, including GBP6.0 million for the sale of its beer business to Asahi for GBP250 million since the year's end.

The adjusted pretax profit figure was flat, at GBP43.2 million.

Fuller's is paying a final dividend for its A and C shares of 4.35 pence a share, taking the total to 20.15p, up 3% on the year before. The B share final dividend is 0.435p, taking the total to 2.015p, also up 3%.

Beer and cider volumes for the year were flat year-on-year, Fuller's continued, with the year before having declined by 1%.

Chief Executive Simon Emeny said: "It would be impossible to review the last financial year without mentioning the sale, post-year-end, of the Fuller's Beer Business, a transformational move that has changed the face of our company. Fuller's has always taken decisions for the very long term and this sale was no exception.

"It gives us an even clearer focus on sustainable growth from the higher-margin part of our business and has the added advantage of putting us in a strong position to deal with potentially turbulent times ahead as the UK navigates the implications of exiting the EU."

"Underpinning this position is a premium pubs and hotels business in robust health. We have had another year of like for like growth that has outperformed the industry, while our successful Tenanted business has continued to build on the new turnover agreement that creates genuine, sustainable partnerships between our Tenants and ourselves," Emeny continued.

For the first 16 weeks of its new financial year, Fuller's Managed Pubs & Hotels like-for-like sales have risen 1.2%, with total sales up 2.3%. Operating profit in Tenanted Inns is down 3% like-for-like.

This comes against some "incredibly difficult" comparatives, Emeny said, including the hot summer of 2018 and the football World Cup.

Shares were 2.0% higher on Thursday morning at 1,086.20p each.