- Fuller’s reported pre-tax profits rose 40% to £14.4m in the year to March.
- The company’s operating margins increased despite higher food and labor costs.
Fuller, Smith & Turner has hailed an “excellent” year, reporting higher profits against a backdrop of elevated cost pressures.
The hotel group, which operates pubs and hotels in London and the south, reported that its pre-tax profits rose 40 per cent to £14.4 million in the year to March 30.
Although the west London-based company endured higher food and labor costs, the latter due to the rise in the national living wage, its operating margins still improved by 2.2 percentage points to 9.6 per cent.
Cheers to that: Fuller hotel group’s reported pre-tax profits rose 40 per cent to £14.4 million in the year to March 30.
Its results further showed that revenue rose 7.1 per cent to £359.9 million, thanks in part to a strong like-for-like performance at the company’s city sites.
This follows a difficult time for Fuller’s central London venues, which have been hit hard by Covid-19 restrictions with demand shifting towards suburban and rural pubs amid the growth of working from home.
They were also significantly affected by reduced consumer incomes, declining tourist numbers and multiple rail workers’ strikes over the past two years.
The recovery in trade helped the company’s comparable urban turnover rise by 15.6 per cent, after soaring by around a third the previous year.
Meanwhile, comparable food sales rose 14.5 percent, while beverage sales rose 9.8 percent due to growing demand for low- and no-alcohol beers.
Simon Emeny, chief executive of Fuller’s, said the company “delivered excellent results in the last financial year, despite the high inflationary environment”.
“As of today, those inflationary pressures – especially with regard to food and energy – have eased, giving us additional confidence for next year.”
Analysts also anticipate that the upcoming European Football Championship will bolster the pub sector, which is still struggling with a considerable volume of closures.
According to recent data from chartered accountant Price Bailey, 769 pub businesses filed for insolvency in 2023, the highest number in a decade and around 250 more than the previous year.
Julie Palmer, partner at Begbies Traynor, said: “The Fullers are looking forward to warm summer nights, lovely hot weekends and a stellar performance from England at the Euros.
“If it achieves all three this summer, the iconic pub group will have reason to be happy, especially given the prospect of expanded licenses if the Three Lions do particularly well.”
Pubs will be able to stay open for an extra two hours on match days this summer if England or Scotland reach the semi-finals of the tournament.
Fuller, Smith and Turner Actions They were steady at 720 pence on Thursday morning and have risen around 32 per cent in the last 12 months.
