22nd Nov 2013 09:01
LONDON (Alliance News) - London Pride brewer Fuller, Smith & Turner PLC lifted its interim dividend by 8.4% Friday after revealing a 6.1% increased in half-year revenue, driven by a strong performance by its 174 managed pubs and hotels.
Like fellow London-based brewer Young & Co.'s Brewery PLC, which reported on Thursday, Fuller credited "glorious summer weather" in southern England for filling its pub gardens with drinkers.
Fuller said the sales momentum has continued into the second half, with like-for-like sales at its managed pubs and hotels up 7.8% in the 33 weeks to November 16.
Revenue for the 26 weeks ended September 28 was GBP146.3 million, up from GBP137.9 million for the same period a year before. Revenue from managed pubs and hotels grew by 10% to GBP94.4 million. Fuller's 211 tenanted pubs fared less well, with revenue rising 1.9% to GBP16.0 million.
Revenue from brewing rose by only 1.0% to GBP58.3 million, as the summer drinkers opted for foreign lagers.
Adjusted profit, excluding exceptional items, rose 7.7% to GBP18.1 million from GBP16.8 million. However, including a net GBP1.3 million in exceptionals, pretax profit declined 2.9% to GBP16.8 million from GBP17.3 million. The items included reorganisation costs of GBP1.3 million, mostly from redundancies within its brewery sales force and supply chain team.
Fuller said it also took a property impairment charge of GBP0.5 million, GBP0.3 million of acquisition costs expensed, and GBP0.3 million of finance costs on net pension scheme liabilities. These were offset by a profit on the disposal of non-core properties of GBP0.5 million and the release of "onerous" lease provisions of GBP0.6 million.
Fuller, which closed its final salary pension scheme to new members in 2005, said it is now in consultations to close it to new accruals from January 1, 2015.
Net debt decreased by GBP4.2 million during the first half to GBP134.4 million, as strong cash generation was offset by GBP7.9 million in investment. Fuller spent GBP3.8 million to acquire Cornish Orchards Ltd. in June, and also made several pub and property investments.
Fuller said it is trying to increase its exports, with Sweden its biggest foreign markets and Russia also performing well for it.
Fuller declared an interim dividend of 5.80 pence per share, up from 5.35p a year before.
In morning trade Friday, Fuller shares are quoted at 989.00 pence, down 1.50p.
By Tom Waite; [email protected]; @thomaslwaite
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