Fuller Smith & Turner delivers strong H1, but warns of "pain" from tax changes

The company reported revenues of £194.1m in the six months to 28 September, up from £188.8m last year, with like-for-like sales rising 5.2% driven by underlying growth across food, drink and accommodation.

Adjusted pre-tax profit jumped 20.5% to £17.6m, helping the group to increase its interim dividend by 12% to 7.41p per share.

Fuller's said that momentum has continued into the third quarter, with LFL sales over the 32 weeks combined up 5.4% on last year, while the company has plans for £20m of capital expenditure over the second half.

"This sustained underlying performance, combined with the added benefit from our Lovely Pubs acquisition and encouraging Christmas bookings up 15%, provides us with confidence that we are on track to meet current market expectations for the financial year," said chief executive Simon Emeny.

He said the board remains "positive and optimistic" despite the fresh challenges presented in the recent budget.

Chair Michael Turner said changes to employers' national insurance contributions "will cause particular pain" and said chancellor Rachel Reeves' actions are a "direct attack on those labour-intensive industries that are the lifeblood of our economy".

From April next year, companies across the hospitality and leisure sectors will have to contend with the threshold on earnings at which national insurance applies dropping from £9,100 to £5,000, while the rate paid will jump from 13.8% to 15%.

"The unintended consequences of these actions will be to drive inflation higher, put pressure on wages, and will drive many businesses to the wall. I hope the government will reflect on its decisions and appreciate the incredible contribution hospitality, farming, and small businesses make to so much more than just the Treasury coffers," Turner said in a statement.