Fuller's reports strong trading momentum, reduced debt

23rd Jul 2024 08:54

(Sharecast News) - Pub operator Fuller, Smith & Turner reported strong trading momentum for the 16 weeks ended 20 July in an update on Tuesday.

The London-listed company, which was holding its annual general meeting, said it achieved like-for-like sales growth of 5.3% during the period, benefiting from easing inflationary pressures which had helped to recover margins.

In a strategic move to strengthen its balance sheet, Fuller's completed the sale of 37 non-core pubs to Admiral Taverns for £18.3m, and sold the Mad Hatter in Southwark for £20m.

It said those transactions had reduced its underlying net debt to £92m, enhancing its financial flexibility.

With an improved balance sheet, Fuller's said it was well-positioned to fund its ongoing share buyback programme and seize appropriate acquisition opportunities.

"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," said chief executive officer Simon Emeny.

"You can feel the positivity across the business, with our team members working energetically to drive our continued success.

"We have had a strong start to the financial year, and we look forward to the opportunities the future will bring."

Emeny noted the new UK government, urging prime minister Sir Keir Starmer to "stand by his commitment" to overhaul the country's "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.

"I look forward to providing a further update on 13 November when we will issue our half year results for the 26 weeks to 28 September."

At 0841 BST, shares in Fuller, Smith & Turner were down 0.06% at 715.56p.

Reporting by Josh White for Sharecast.com.