Fuller, Smith & Turner PLC (FSTA)
Fuller, Smith & Turner PLC: Business Update and Trading Statement
15-Nov-2019 / 07:00 GMT/BST
Dissemination of a Regulatory Announcement that contains inside information
according to REGULATION (EU) No 596/2014 (MAR), transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.
15 November 2019
Business Update and Trading Statement
Fuller, Smith & Turner P.L.C. ("Fuller's" or "the Company"), the premium
pubs and hotels business, today provides the following update.
The business continues to trade well with total sales in our managed estate
growing 5.2% and like for like sales growth of 2.3% for the 32 weeks to 9
November 2019, against strong comparatives for the corresponding period last
year albeit with some margin erosion due to industry wide cost pressures.
As previously communicated, 2019 has been an unprecedented year of change
for Fuller's following the disposal of the Brewing Business to Asahi;
delivery of the Transitional Services Agreement ("TSA") associated with the
sale; and migration to a new Enterprise Resource Planning system ("ERP").
As a result of the sale of the brewing business, underlying earnings of the
retained business have been aligned accordingly and the vast majority of the
central overheads reflecting Fuller's former integrated structure have been
retained by the Company until the TSA agreement with Asahi comes to an end
by May next year.
Whilst it was not underestimated that this would be a period of significant
transition for the business, the costs associated with carrying the central
overhead previously allocated to the Beer Company have transpired to be
materially higher than expected, with additional resource required to assist
the business through this complex separation period. In part, this has been
impacted further by the migration to a new ERP system which has not yet
delivered the expected benefits and additional costs have been incurred
operating the system as a result.
It is anticipated that the current level of overhead will continue until the
TSA agreement concludes by May 2020. Thereafter, the Company will be able to
transition to a structure more appropriate for a focused premium pubs and
hotels business.
As a result of the above, it is anticipated that profit performance for the
full year ending 28 March 2020 will be broadly in line with the prior year
on a comparable basis, resulting in adjusted profit before tax in the region
of GBP31m.
Looking forward our strategy is clear and remains on track as we look to
deliver our growth plans for the future as a focused premium pubs and hotels
business. This has been evidenced most recently by our acquisition of
Cotswold Inns and Hotels, comprising seven high quality, freehold country
inns and hotels, together with two vibrant leasehold bars in Birmingham's
city centre.
A more detailed update and further guidance will be provided at the
Company's Half Year results on 12 December 2019.
Fuller's Chief Executive Simon Emeny said:
"This is a transitional year for the Company following the sale of the
brewing business and subsequent separation of a highly integrated business.
There have been many moving parts to navigate and we have incurred some
greater than anticipated costs as a result which have had a short term
impact on our financial performance. Whilst we are taking the action to
address these, the impact of this will not be felt in the current financial
year.
"Trading is good in light of exceptionally strong comparatives last year and
the continued challenge of cost inflation facing our sector. Our strategy
remains on track and we will continue to execute our growth ambitions and
maximise the opportunities open to us as a focused pubs and hotel business."
This announcement contains inside information and the person responsible for
making this announcement on behalf of Fuller's is Adam Councell, Group
Finance Director.
For further information, please contact:
Fuller, Smith & Turner P.LC.
Simon Emeny, Chief Executive 020 8996 2000
Adam Councell, Group Finance Director 020 8996 2000
Georgina Wald, Corporate Comms Manager 020 8996 2198 / 07831 299801
Instinctif Partners
Justine Warren 020 7457 2020
Notes to Editors:
Fuller, Smith and Turner P.L.C. is a premium pub and hotel business. The
Company runs 179 Tenanted pubs and 215 Managed Pubs and Hotels, with a focus
on delicious fresh, home-cooked food, outstanding cask and craft ale, great
wine and exceptional service. The Company also has 1028 boutique bedrooms in
its Managed estate. The Fuller's pub estate stretches from Brighton to
Birmingham and from Bristol to the Greenwich Peninsula, including 174
locations within the M25. In June 2018 Fuller's acquired Bel & The Dragon,
comprising six stunning country inns (included in the pub numbers above),
and the Company also owns The Stable, a craft cider and gourmet pizza
restaurant business, which has 16 sites in England and Wales. In April 2019,
Fuller's sold its brewing division to Asahi Europe Ltd. The Company
subsequently announced the acquisition of Cotswold Inns and Hotels last
month, comprising a collection of seven high quality, freehold country inns
and hotels in the Cotswolds, together with two vibrant leasehold bars in
Birmingham's city centre.
ISIN: GB00B1YPC344
Category Code: TST
TIDM: FSTA
OAM Categories: 2.2. Inside information
Sequence No.: 29360
EQS News ID: 913651
End of Announcement EQS News Service
(END) Dow Jones Newswires
November 15, 2019 02:00 ET (07:00 GMT)
