Fuller, Smith & Turner PLC (FSTA)
Fuller, Smith & Turner PLC: Final Results
30-Jul-2020 / 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.
STRICTLY EMBARGOED
UNTIL 7AM THURSDAY 30 JULY 2020
FULLER, SMITH & TURNER P.L.C.
("Fuller's", the "Group" or the "Company")
Financial results for the 52 weeks ended 28 March 2020
A transformational year for a long-term business
Financial and Operational Indicators
· Revenue and other income from continuing operations up 3% to GBP333.0 million (2019: GBP324.7 million)
· Pre IFRS 16 profit before tax for total Group operations of GBP174.5 million (2019: GBP26.1 million). Statutory
profit before tax for total Group operations of GBP166.2 million
· Basic earnings per share pre IFRS 16 for total Group operations of 305.86p (2019: 35.12p)
· Good performance from Managed Pubs and Hotels pre coronavirus with like for like sales[1] growth of 2.3% for the
49 weeks to 7 March 2020 (2019: +4.9%) - ahead of the industry average
· Like for like growth in all areas of the business - drinks sales up 1.7%, food sales up 1.9% and accommodation
sales up 5.9% for the 49 weeks to 7 March 2020
· Steady performance from Tenanted Inns - like for like profits[2] declined 3% (2019: +1%) in a tough trading
environment
· Net debt pre IFRS 16 reduced by GBP66.3 million to GBP178.9 million at year end
· Strong returns to shareholders during the year, equating to GBP1.33 per 'A' ordinary share
· GBP162.4 million profit from the sale of the Fuller's Beer Business
· Impact of coronavirus on 2019/20 trading is estimated in excess of GBP10 million
· Entire pubs and hotels portfolio closed post government coronavirus directive from 20 March 2020 - phased
reopening started 4 July with 163 Managed Pubs and Hotels and almost all Tenanted Inns open as of today.
Strategy Update
· Completed the sale of the Fuller's Beer Business to Asahi Europe Ltd for the enterprise value of GBP250 million in
April 2019
· Acquired Cotswold Inns & Hotels for an enterprise value of GBP40 million - seven stunning freehold sites that are a
great addition to our portfolio
· Returned GBP69 million to shareholders
· Voluntary contribution of GBP24 million to the defined benefit pension scheme
· Completed the Transitional Services Agreement with Asahi in April 2020
· Purchased Pier House - a new freehold office for our support centre in our Chiswick heartland
· Opened The Windjammer at Royal Docks, a new build site, and The Bear of Burton near Christchurch, Dorset - an
outstanding pub with rooms
· Sold the freehold of The Castle, Acton for GBP10.3 million.
Current Trading and Outlook
· Over 75% of Managed Pubs and Hotels and almost all Tenanted Inns already reopened
· Too early to draw meaningful conclusions for the longer term, but comfortable with current levels of trade
· Issued GBP100 million of commercial paper through the Bank of England Covid Corporate Financing Facility
· Completed the integration of Cotswold Inns & Hotels and Bel & The Dragon
· Completed the sale of The Stable to Three Joes.
Commenting on the results, Chief Executive Simon Emeny said: "When we released our interim statement in December
2019, we were on track to finish the financial year in a good position having received the proceeds from the sale of
the Fuller's Beer Business and with a clear future path laid out before us. It had been a transformational year for
Fuller's - but we would never have anticipated that we would end it in March with the whole hospitality industry in a
state of closure and with no income stream.
"Against this backdrop, it is easy to forget that the financial year started in April 2019 with the sale of the
Fuller's Beer Business to Asahi Europe Ltd for an enterprise value of GBP250 million, followed in October 2019 by the
acquisition of Cotswold Inns & Hotels - seven stunning hotels in the heart of the Cotswolds - from existing bank
facilities. The decision to sell the Fuller's Beer Business at that time has proved fortuitous and ensured we were in
a strong position, with substantial liquidity headroom, when the coronavirus pandemic struck.
"While it is still early days, it is pleasing to see our teams welcoming guests back and we have taken a range of
actions and measures to ensure our pubs are safe and inviting. The first stage of our three stage plan saw 27 pubs
open on 4 July 2020 and another 136 since - meaning over 75% of our Managed Pubs and Hotels are now open. Almost all
our Tenanted Inns have also reopened. While it is too early to draw any meaningful conclusions, we are comfortable
with the level of trade and we continue to monitor footfall in those areas where our pubs are not yet open.
"While we are prepared for business, particularly in London, to take some time to return to normal, we are well
placed to satisfy the uptick in demand for staycations as many customers holiday closer to home - an opportunity we
are supporting with marketing activity for our Beautiful Bedrooms. We continue to focus on minimising cash burn and
returning to profitability. During August, we will gradually reintroduce rent for Tenants - but on a tapered basis to
help with their own return to sustainable trading levels.
"In these uncertain times, it is challenging to accurately predict the future. But having begun reopening our pubs
nearly four weeks ago, it is encouraging to see customers returning to our pubs and this steady growth in consumer
confidence will be the key to success - not just of our Company or our industry but the economy as a whole. We have a
well-balanced estate geographically and that, combined with a freehold asset base and the calibre of our people, puts
us in a stronger position than many to build towards sustained profitability in this full year and a strong start to
the FY2022 financial year.
"A freehold approach is a fundamental foundation of our long-term business. It is not always fashionable, but yet
again it underpins our ability to survive the toughest of times. We are proud to be 175 years old this year and with
our balanced and well-invested estate, prudent approach to finance and amazing team of dedicated people, we will
still be here for generations to come."
-Ends-
For further information, please contact:
Fuller, Smith & Turner P.LC.
Simon Emeny, Chief Executive 020 8996 2000
Adam Councell, Finance Director 020 8996 2000
Georgina Wald, Corporate Comms Manager 020 8996 2198
Instinctif Partners
Justine Warren 020 7457 2010
Notes to Editors:
Fuller, Smith & Turner PLC is the premium pubs and hotels business that is famous for beautiful and inviting pubs
with delicious, fresh food, a vibrant and interesting range of drinks, and engaging service from passionate people.
Fuller's has 215 Managed Pubs, with 1,028 boutique bedrooms, and 177 Tenanted Inns. The estate is predominately
located in the South of England (44% of sites are within the M25) and stretches from our City of London heartland to
the Jurassic Coast via the New Forest. Our Managed Pubs and Hotels include 15 iconic Ale & Pie pubs, seven stunning
hotels in the Cotswolds and Bel & The Dragon - six exquisite country inns located in the Home Counties. In summary,
Fuller's is the home of great pubs, outstanding hospitality and passionate people, where everyone is welcome and
leaves that little bit happier than they arrived.
Photography is available from the Fuller's Press Office by email at pr@fullers.co.uk.
Copies of this statement, the Annual Report and results presentation will be available on the Company's website,
www.fullers.co.uk [1]. The presentation will be available from 12 noon on 30 July 2020.
FULLER, SMITH & TURNER P.L.C.
FINANCIAL RESULTS FOR THE 52 WEEKS ENDED 28 MARCH 2020
CHAIRMAN'S STATEMENT
The last financial year has been truly transformational for Fuller's - in more ways than we could have imagined. It
started with the sale of the Fuller's Beer Business to Asahi Europe Limited for the enterprise value of GBP250 million
and culminated with the entire estate temporarily closed to our customers and the whole country in a state of
lockdown. Against this backdrop, your Company delivered a solid performance and is well-prepared as we start to
reopen our premium pubs and hotels.
As a focused pubs and hotels business, we have had a good year delivering GBP333 million in revenue and other income
and GBP19.7 million of adjusted profit before tax[3]. This includes the detrimental impact of the closure of the
business during the last month of trading. Prior to the closure of the business, the year to date financial
performance was in line with the Board's expectations and the final quarter was delivering positive results and
strong progress. Profit before tax[4] was GBP174.5 million including the profit on the sale of the Fuller's Beer
Business.
On a like for like basis, our pubs again outperformed the industry with sales rising by 2.3% to 7 March 2020, when we
started to see significant financial impact as our customers stayed at home due to the coronavirus outbreak.
Our Balance Sheet remains strong at the reporting date, supported by a predominately freehold estate and significant
levels of liquidity. This has been achieved by successive generations of management, who have stuck to their
long-term focus and have built the foundations of the business patiently and carefully to withstand financial shocks,
however they are caused. This position has been enhanced by the Company being assessed as Investment Grade by our
lenders, which has enabled us to access the Bank of England's Covid Corporate Financing Facility, under which we have
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