Coming from a quality outfit like Fuller, Smith & Turner (FSTA), this bumper set of interim results was hardly a surprise. The pub group reported a 9 per cent increase in cash profits for the first six months, with like-for-like sales growth of 7 per cent across its managed pubs and hotels. A 14 per cent increase in food sales was a key ingredient in the group's growth.
The tenanted estate also performed solidly, with profits rising 2 per cent to £6.3m despite a string of disposals (5 per cent like-for-like). Fuller's estate is too small to be affected by the abolition of the beer tie currently working its way through parliament, but the company showed signs of nervousness, shifting sales director and board member Richard Fuller into a new position to lobby the government.
A number of openings punctuated the first half, most notably the launch of London Pride at Heathrow's new Terminal 2. More openings are scheduled for the second half, but management is keen to maximise returns from recent acquisitions as well. These include The Stable, in which Fuller’s took a 51 per cent stake in June. The craft cider and gourmet pizza business hopes to target a younger, female demographic.
Brokerage Numis expects pre-tax profits of £36m for the full financial year, giving EPS of 50.7p. Last year the company made £34.1m and 46.3p.
| FULLER, SMITH & TUNER (FSTA) | ||||
|---|---|---|---|---|
| ORD PRICE: | 950p | MARKET VALUE: | £532m* | |
| TOUCH: | 922-950p | 12-MONTH HIGH: | 1,020p | LOW: 831p |
| DIVIDEND YIELD: | 1.7% | PE RATIO: | 19 | |
| NET ASSET VALUE: | 504p* | NET DEBT: | 56% | |
| Half-year to 27 Sep | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2013 | 146 | 16.8 | 28.7 | 5.8 |
| 2014 | 162 | 18.3 | 25.3 | 6.4 |
| % change | +10 | +9 | -12 | +10 |
Ex-div: 4 Dec Payment: 2 Jan *Includes family held 'B' shares | ||||
