The chief executive of Fuller’s has said the company “in excellent shape” following a great start to the year, despite challenges that exist in the hospitality landscape.
Like for like sales for the company’s Managed Pubs & Hotels in H1 were 5.2%, demonstrating “continued market outperformance” while adjusted profit before tax increased by 21% to £17.6 million compared to £14.5 million in the first half of the year.
Chief executive Simon Emeny said: “We have had a great start to the year – delivering on all five pillars of our strategy and ensuring that we succeed in our purpose, to create experiences that nourish the soul. In our Managed Pubs and Hotels, we have delivered like for like sales growth of 5.2% – ahead of the industry’s CGA RSM Hospitality Business Tracker on average by two percentage points – and our adjusted profit before tax has risen by 21%.
“Our estate is in amazing shape. The sale of 37 non-core tenanted pubs to Admiral Taverns for £18.3 million, followed by the acquisition of the Lovely Pubs business on a multiple of 7.25x EBITDA for £22.5 million, gives us 185 outstanding Managed Pubs and Hotels and 153 excellent Tenanted Inns.
“Without a shadow of doubt, our estate has never been in such good shape, and we continue to invest to maintain our quality, with £10 million of capital expenditure in the first half.
“We will be investing a further £20 million in our estate during the second half, including substantial schemes at The Drayton Court in West Ealing, The Chamberlain in the City and the Bel & The Dragon in Odiham. We also continue to look at appropriate opportunities to drive our long-term strategy of growing the estate.
“Following our strong first half results, we have continued to build on our momentum with like for like sales for the 32 week period rising by 5.4%. This sustained underlying performance, combined with the added benefit from our Lovely Pubs acquisition and encouraging Christmas bookings up 15%, provides us with confidence that we are on track to meet current market expectations for the financial year.
“In summary, everything that is in our control is going well. We have an outstanding, predominately freehold, well-invested estate, a driven and motivated team – who are supported by continuous development – and a clear, consistent strategy. We are in excellent shape, and despite the fresh challenges presented by the Chancellor’s recent budget, we remain positive and optimistic about the future.”
