FDBusiness.com

Fuller, Smith & Turner has reported a 2% rise in EBITDA to £38.2 million and a 6% jump in revenue to £222.1 million for 26 weeks ended 29 September 2018 as the UK brewer, pub operator and hospitality group increased investment for long-term growth. However, adjusted profit before tax slipped by 1% to £23.6 million.

The results reflected a good performance from the Managed Pubs and Hotels business with like for like sales rising 4.1%, and strong results from Tenanted Inns with like for like profit up 4% (2017/18: 3%). Total beer and cider volumes for The Fuller’s Beer Company rose marginally by 0.2%, with revenue up 7% and operating profit up 9%.

Simon Emeny, chief executive of Fuller, Smith & Turner.

Fuller, Smith & Turner currently runs 182 tenanted pubs and 203 managed pubs and hotels. The group also has 782 boutique bedrooms in its managed estate. The Fuller’s pub estate stretches from Brighton to Birmingham and from Bristol to the Greenwich Peninsula, including 173 locations within the M25. In June 2018 Fuller’s acquired Bel & The Dragon, comprising six country inns and the company also owns The Stable, a craft cider and gourmet pizza restaurant business, which has 17 sites in England and Wales.

The Fuller’s Beer Company brews a portfolio of premium beers including London Pride, Frontier Premium London Lager and a variety of cask and craft keg beers supported by a changing seasonal range. It also owns Cornish Orchards, a craft cider maker, and Nectar Imports, a wholesale drinks business. In February 2018, Fuller’s also acquired Dark Star Brewing, a craft cask brewer based in Sussex.

Simon Emeny, chief executive of Fuller, Smith & Turner, comments: “I am pleased to be reporting another good performance. Each division is delivering growth and we continue to benefit from having a well-balanced business. Our excellent management team has further strengthened the business through a clear vision, a strong set of values and a commitment to growth through offering an outstanding customer experience and recruiting, developing and retaining the best people.

“While our revenues have continued to grow, we experienced a small drop in group profits – however, this should be taken in context. We made a conscious decision to front-load our investment programme – impacting our profitability by £0.9 million. Although we would have seen profit increase had we not taken this action, we believe this is the right decision and ensures our estate is in the best possible position to benefit from the busy Christmas period and beyond.”