Happy Hour: Fuller’s returns to profitability as pandemic restrictions ease
Fuller, Smith & Turner (Fuller’s) is rebuilding its business following severe pandemic restrictions with profitable half-year results.
The group has reported a healthy adjusted profit of £4.6m, after being down £22.2m during its first six months in last year’s results.
Revenue has more than doubled, despite the pub operator suffering two months of pandemic restrictions including banning indoor drinking and dining.
Its EBITDA has also grown over the period to £22.8m after wallowing in negative numbers in last year’s results.
Fuller’s has now managed like-for-like sales for seven weeks to 13 November at 90 per cent of 2019’s pre-pandemic levels.
Meanwhile, rural pubs and hotels are performing above 2019 levels, and central London is benefitting from study growth following the return of workers to the City.
The company will only benefit further from the return of international travel and tourists visiting the capital.
Net debt remains high, at £131.5m excluding lease liabilities.
While Fuller’s has cut debt by £56m in the first six months, its recovery is reliant on bustling trade continuing throughout the winter without pandemic restrictions.
It is also facing industry-wide supply pressures and soaring energy costs.
For now, though, the business is cash-generative with trade continually increasing.
It also successfully completed a £52m equity placing in April 2021 to strengthen its balance sheet.
Fuller’s has also reported an interim dividend payment of 3.90p per ‘A’ and ‘C’ ordinary share.
Following the results, shares are now up 2.8 per cent on the FTSE All-Share.