15th Jun 2023 15:26
(Alliance News) - Fuller, Smith & Turner PLC's profit was hurt by inflation pressure, but analysts and investors cheered a sharp revenue hike.
Fuller's shares were 4.4% higher at 574.10 pence each in London on Thursday afternoon.
The pub chain said its revenue in the year to April 1 surged 33% to GBP336.6 million from GBP253.8 million, as its business improved from the impact of Covid-related resections on trade. Pretax profit, however, slipped 10% to GBP10.3 million from GBP11.5 million.
Operating costs increased 37% to GBP325.7 million from GBP237.3 million, hurting profit.
Looking forward, Chief Executive Simon Emeny said he is "more optimistic about the future" than he has been since before the pandemic.
Edison analyst Neil Shah took heart from Fuller's reporting an 18% rise in like-for-like sales, 40% in central London alone, a key location where workers are returning to offices and turning to pubs and bars for a post-shift refreshment.
Fuller's has also received a boost from holidayers, Shah noted.
"These strong results can be attributed to the continual growth of establishments throughout the nation, most notably opening a new location in Heathrow Airport's busy terminal 2," Shah added.
The London's Pride site at the terminal was opened back in July of last year.
Talking up the site to attract punters, the Fuller's website reads: "Jetting out of London means leaving behind one of the capital's greatest treasures – Fuller's beer. But thanks to London's Pride, Fuller's inaugural airside pub, passengers at Heathrow Terminal 2 can now enjoy the brewery's famous ales, food and service right up until take-off."
Edison's Shah believes Fuller's has done well to "overcome unseen hurdles".
"The company plans to continue these streamlines of growth, noting new establishments to open in the City and Ealing as more city workers and tourist return to London. With this, the group is well situated for success in the following year to come," Shah added.
By Eric Cunha, Alliance News news editor
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