Shareholders in Fuller, Smith & Turner (FSTA) can say 'cheers' to another strong year with like-for-like sales up 3.7 per cent at its managed pubs and hotels. This was mainly thanks to food and accommodation, the latter branded the "stand-out performer" with higher occupancy rates increasing like-for-like sales by 6.4 per cent. Management pointed to tourists wanting the experience of staying in a traditional British boozer, as well as growing numbers of Brits on a 'staycation'.
The brewery arm was also a strong performer, with revenue up 17 per cent to £148m on the back of the acquisition of specialist craft beer wholesaler Nectar, without which volumes fell 2 per cent. But the group's tenanted pubs had a more challenging year with comparable profits down 1 per cent. Fuller has identified 20 of these pubs to drop from its portfolio, with four sold before the period-end. It will push investment in its remaining tenanted pubs up by more than half to £3m a year, in an effort to improve both back and front of house.
Analysts at Peel Hunt expect pre-tax profit £44.2m in the year to March 2018, giving an EPS of 62.2p, compared with £42.9m and 61.4p in FY2017.
| FULLER, SMITH & TURNER (FSTA) | ||||
|---|---|---|---|---|
| ORD PRICE: | 1,062p | MARKET VALUE: | £593m* | |
| TOUCH: | 1,063-1,094p | 12-MONTH HIGH: | 1,125p | LOW: 925.5p |
| DIVIDEND YIELD: | 1.8% | PE RATIO: | 18 | |
| NET ASSET VALUE: | 561p* | NET DEBT: | 67% | |
| Year to 1 Apr | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2013 | 272 | 33.7 | 50.4 | 14.0 |
| 2014 | 288 | 33.5 | 52.1 | 15.1 |
| 2015 | 322 | 36.1 | 51.2 | 16.6 |
| 2016 | 351 | 39.2 | 59.3 | 17.9 |
| 2017 | 392 | 39.9 | 59.2 | 18.8 |
| % change | +12 | +2 | - | +5 |
Ex-div: 22 Jun Payment: 27 Jul *Includes family-owned B and C shares | ||||
