23rd Jan 2023 10:55
(Alliance News) - Fuller, Smith & Turner PLC warned that annual earnings will be below market expectations, with the UK pub and hotel chain saying rail strikes kept customers away.
London-based Fuller's has 208 managed pubs and hotels, plus 175 that are tenanted, mostly in south England and the Cotswolds.
The company's financial year ends in March. Pretax profit in financial 2022 was GBP11.5 million on revenue of GBP253.8 million.
Fuller's said that while sales in the four-week Christmas and New Year period were up 38% from a year before, they remained down 5% from the same period in 2019, before the Covid-19 pandemic. Train strikes throughout the holiday period reduced sales by GBP4 million, the company estimates.
In the 43 weeks to January 21, like-for-like sales were up 20% on a year before but down 3% from the same pre-pandemic period in financial 2020.
"We are encouraged by our underlying sales performance," said Chief Executive Simon Emeny. "While it is frustrating that the train strikes have set back our reported sales and earnings, it is reassuring that we are achieving our anticipated sales trajectory in periods unaffected by strikes."
In addition to the rail strikes, Fuller's said it has had to cope with high inflation, which has raised operating costs and narrowed profit margins.
"Although strike action and the cost-of-living crisis create short-term hurdles to our post-pandemic recovery, we remain confident in the resilience of the pub and the future opportunity for Fuller's, Emeny said.
Fuller's shares were down 2.4% at 482.00 pence each in London on Monday morning.
By Tom Waite, Alliance News editor
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