London-based pub firm and brewer Fuller’s enjoyed a 12% increase in revenue over the past year (53 weeks to 1 April 2017), thanks to a strong performance by its managed pubs and hotels division.
Revenues rose to £392m over the period, while adjusted profit before tax also increased 5% to £42.9m.
Fuller’s managed pubs and hotels division saw like-for-like sales growth of 3.7%, driven by growth in food and accommodation.
However, like-for-like profits in its tenanted inns were down by 1%, although EBITDA per pub was up 2%. Total beer and cider volumes were also down by 2%.
During the course of the year, Fuller’s invested £22m in its existing inns estate and acquired five new pubs as well as adding an additional 71 bedrooms. It also opened four new restaurants for the Stable brand, and acquired another 25% share in that business, taking its ownership to 76%.
Fuller’s like-for-like sales in the first nine weeks of the company’s new financial year since 1 April 2017 were up by 6.6%, while tenanted inns saw like-for-like profits rise 5%. Total beer and cider volumes were up 7% in the first nine weeks.
However, the company, which runs runs 190 tenanted pubs and 198 managed pubs and hotels, warned about impending cost pressures, including business rates, the apprenticeship levy, the rising national living wage, and recruitment pressures due to the UK’s departure from the European Union.
Chief executive Simon Emeny said: “It has been another good year for Fuller’s with a strong set of results for the company. Food and accommodation have driven like-for-like sales growth in our managed pubs and hotels and the targeted investments we have made in both new sites and redeveloping our existing estate have generated excellent returns. We have purchased five new sites and completed 25 major refurbishments in the last 53 weeks.
“We are only nine weeks into the new financial year, but we have had a very strong start, albeit against our softest quarter last year, with like-for-like sales in our managed pubs and hotels up 6.6%, like-for-like profits in our tenanted inns up 5% and volumes in the Fuller’s Beer Company rising 7%.
“There are a number of headwinds that will have a significant financial impact on both Fuller’s and the industry as a whole, but we face the future in a strong position. Our managed pubs and hotels are in good shape and although there is a lot of work and a long way to go, we have a clear vision and solid strategy for both our tenanted inns and the Fuller’s Beer Company.”