Fuller, Smith & Turner's sales recovery continues YTD

Pub landlord Fuller, Smith & Turner said on Thursday that its sales recovery was continuing, especially in the City and West End of London.

Fuller's said total sales up 3% against pre-pandemic levels and 81% year-on-year over the first 16 weeks of the new financial year. On a like-for-like basis, sales for the 16 weeks to 16 July were up 27% year-on-year.

The FTSE 250-listed company stated it was "well-financed", with total available facilities of £226.0m and with net debt reduced from £131.9.0m at the start of the financial year to £123.6m on 17 July 2022, demonstrating a "healthy recovery" in free cash flow generation.

Fuller's also said the "underlying strength" of its long-term business was reflected in the group's implied net asset value per share of £13.80.

During the period, Fuller's acquired one new site – The Queen's Arms at Heathrow's Terminal Two – which will open in early August 2022, while it added a further three sites were in "advanced stages of negotiation".

Chief executive Simon Emeny said: "We are pleased with our sales growth trajectory, particularly in our Central London sites where momentum is building well. The industry-wide inflationary cost pressures around food supply, labour, and particularly energy are showing little signs of abating. Our premium offer and effective supply chain management provide a degree of protection, but we are not immune from its effects on costs or consumer behaviour.

"Fuller's is a long-term business with a strong balance sheet, a clear strategy, and great people to execute it. Hospitality continues to bear the brunt of many challenging external factors, but we remain confident that Fuller's is well placed to continue to prosper."

As of 1115 BST, Fuller's shares were down 0.93% at 604.34p.

Reporting by Iain Gilbert at Sharecast.com