Fuller's sees profits surge after 'excellent' year

(Sharecast News) - Pubs and hotels group Fuller's has hailed an "excellent" 12 months, with adjusted profits up by a third over the period to 29 March, while good trading momentum continuing into the new financial year. Adjusted pre-tax profit totalled £27m for the year, up 32% on the £20.5m reported previously, as revenues rose 4.8% to £376m. Adjusted earnings per share rose to 34.22p from 24.48p.

Like-for-like sales were up 5.2%, with solid growth seen across all operations: food LFL sales rose 4.8%, drink LFL sales rose 5.3% and accommodation LFL sales rose 5.4%.

Meanwhile, profits were helped by the transfer of 23 smaller managed pubs to the Tenanted Inns division, along with the sale of 37 non-core tenanted pubs. The move raised £18m of capital, which went towards Fuller's acquisition of Lovely Pubs last August for £22.5m.

The board declared a final dividend of 12.35p, up 11% on last year, taking the full-year payout up to 19.76p, also up 11% on last year.

"It has been an excellent year for Fuller's," said chief executive Simon Emeny.

"We have converted this strong revenue growth into improved profitability with adjusted profit before tax rising by 32% and even more pleasing is that these results, combined with our effective allocation of capital, have delivered impressive adjusted earnings per share growth of 40%."

The new financial year has also started well, with LFL sales up 4.2% over the first 10 weeks, with the company "well-positioned to continue to deliver excellent returns to shareholders through future growth and prudent balance sheet management", it said.