Fuller’s reports ‘recovering’ margins

Ahead of its Annual General Meeting (AGM) this week, Fuller, Smith & Turner P.L.C. issued a trading statement which revealed a like-for-like sales growth of 5.3%.

The statement, which concerns the first 16 weeks of the financial year, noted that, thanks to “inflationary pressures easing”, the pub and hotel operator’s margins “are recovering”.

The most major development for Fuller’s in recent weeks has been its offloading of 37 freehold pubs to Admiral Taverns, which, according to the statement, was for a cash realisation of £18.3 million. The sale of The Mad Hatter pub in Southwark brought the total consideration up to £20m, and reduced the company’s underlying net debt to £92m.

At the time, a statement from Fuller’s said that the sale would “further strengthen the company’s balance sheet, enabling additional investment in its pubs, as well as supporting future acquisition opportunities, as appropriate” – the most recent statement reiterated this final point.

Fuller’s currently oversees 178 managed businesses.

“I am delighted to see our sales growth momentum continue, particularly against the backdrop of easing inflation, which will help us to grow margins and profit, as well as revenue,” commented chief executive Simon Emeny.

Emeny also took the opportunity ahead of the AGM to call on the UK’s new Prime Minister to implement reforms to the costs businesses face.

“We have had a strong start to the financial year, and we look forward to the opportunities the future will bring. We have a new UK Government in place, and I urge Sir Keir Starmer to stand by his commitment to overhaul our archaic business rates system. The Labour Party has a clearly stated objective to grow the economy and the hospitality sector can be an excellent engine to help deliver that growth.”

“With the continued commitment of our inspiring teams, we will take the company forward, grow the business, and deliver excellent returns for all our stakeholders,” he continued, sharing that a “further update” concerning the half year results for the 26 weeks to 28 September 2024 would be shared on 13 November.

Many in the drinks industry have cited the new Labour government as an opportunity for a “fresh start”.