Sales of high-end gin and cocktails were up by a fifth at pub and brewer Fuller, Smith & Turner (FSTA), suggesting the focus on premium food and drink is working. And it's a good job as business rates for its managed houses will rise by £2m for the year to March 2018. Chief executive Simon Emeny said the new rates were being phased in, but the amount companies have to pay in the first year had risen from 15 per cent to 45 per cent. He said he would "have to see what happens to prices" as a result.
Like-for-like sales at the managed pubs and hotels division, which accounts for 63 per cent of operating profit, rose 3.4 per cent, lower than the growth rate this time last year. But Mr Emeny said that was mainly due to a weak first quarter and the lack of the Rugby World Cup. Like-for-like profits at the tenanted division dropped 2 per cent, but Mr Emeny said capital expenditure would be increased to "replicate the success in the managed estate". Eighteen tenanted sites have been earmarked for sale.
Analysts at Numis expect pre-tax profit of £42.6m in the year to March 2017, leading to EPS of 61.1p, up from £40.9m and 57.6p in FY2016.
| FULLER, SMITH & TURNER (FSTA) | ||||
|---|---|---|---|---|
| ORD PRICE: | 1,000p | MARKET VALUE: | £559m* | |
| TOUCH: | 990-1,000p | 12-MONTH HIGH: | 1,200p | LOW: 926p |
| DIVIDEND YIELD: | 1.8% | PE RATIO: | 16 | |
| NET ASSET VALUE: | 924p | NET DEBT: | 69% | |
| Half-year to 24 Sep | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2015 | 178 | 21.2 | 29.8 | 6.90 |
| 2016 | 198 | 21.4 | 32.1 | 7.25 |
| % change | +11 | +1 | +8 | +5 |
Ex-div: 1 Dec Payment: 3 Jan *Includes family-held B shares | ||||
