Fuller Smith & Turner outperforms with solid H1 growth

(Sharecast News) - Shares in Fuller Smith & Turner rose on Wednesday after the pubs group said adjusted earnings jumped by more than a quarter over the six months to 27 September, while bookings for Christmas are well ahead of last year.

The company hailed a "great set of results", outperforming the wider market with like-for-like sales growth of 4.6% across its managed pubs and hotels. Revenues totalled £207.5m over the first half, up from £194.1m the year before.

On a like-for-like basis, drinks sales were up 6.5% over last year, food sales increased 2.0% while accommodation sales were up 3.3%.

Adjusted pre-tax profit surged 28% year-on-year to £22.5m, though statutory pre-tax profits slumped 27% to £21.1m after the comparative period benefitted from a £17.2m profit from the disposal of The Mad Hatter hotel.

The company said that the positive momentum has continued into the second half, with year-to-date (32 weeks to 8 November) LFL sales growth holding at 4.6%, while Christmas bookings currently stand 16% ahead of the same time last year.

"We look forward to continuing to develop the business and drive returns for our shareholders," said executive chair Simon Emeny. "Our consistent long-term strategy provides a clear focus and vision, our balance sheet is in excellent shape and supports our ambition to grow, and we face the future with optimism, excitement and confidence."

Emeny called on the government to avoid "further punitive financial measures" for the hospitality sector in the upcoming budget, but said he was "frustrated by the lack of a clear plan to deliver the growth the Chancellor claims to be seeking".

"The country needs ambitious and innovative ways to drive sustainable economic success. It needs new ideas, new thinking - and I genuinely hope the government succeeds in that and succeeds quickly."

Shares were up 2.9% at 640p by 0844 GMT.

Fuller Smith & Turner