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Fuller's sees 6% rise in revenue despite "an array of cost pressures"

24 November 2017 by
Fuller's sees 6% rise in revenue despite "an array of cost pressures"

Fuller's has reported a 6% rise in revenue to £209m despite "cost pressures" such as increasing business rates and the introduction of the Apprenticeship Levy.

In the 26 weeks to 30 September 2017 adjusted profit before tax is up 4% to £23.8m from £22.8m in 2016 and EBITDA had increased 4% to £37.6m from £36.3m in 2016.

Chief executive Simon Emeny said the growth was driven by its managed pubs and hotels which "generate the largest share of turnover and profit" for Fuller's and have "outperformed the market".

The managed pubs and hotels saw like-for-like sales increase by 3.6% and a rise in accommodation sales of 8.2%. Tenanted inns like-for-like profit increased 3%, with 11 pubs sold and average EBITDA per pub rising 7%. Total beer and cider volumes for the Fuller's Beer Company rose 1%.

Emeny said: "The past six months have seen some unprecedented influences on the business, not only in our particular industry, but in the context of the wider UK economy and global political scene. I cannot remember a time when we have faced such an array of additional cost pressures, particularly in our managed pubs, starting with the 26% rise in business rates.

"The pub sector is now responsible for 2.8% of the total business rates bill, despite only generating 0.5% of total turnover. Over and above this increase, we have met with rises in the Apprenticeship Levy and National Living Wage rates, but in spite of this, we have continued to grow, delivering consistently strong returns for our shareholders. This is due to a clear, shared vision and a commitment to delivering an outstanding customer experience across the business."

Since the period end, Fuller's has acquired the Manor near Christchurch, Dorset, a freehold pub with 10 rooms, and is due to open two new London sites in Euston and Liverpool Street next year.

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