DJ Fuller, Smith & Turner PLC: Half-Year Results
Fuller, Smith & Turner PLC (FSTA)
Fuller, Smith & Turner PLC: Half-Year Results
26-Nov-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 26 NOVEMBER 2020
FULLER, SMITH & TURNER P.L.C.
("Fuller's", the "Company", or the "Group")
Financial results for the 26 weeks to 26 September 2020
Financial and Operational Indicators
· Mandated closure of the estate for 14 weeks of the 26 week trading period. Phased
reopening from 4 July 2020 but 66% trading weeks lost in Managed business due to
ongoing restrictions on consumer behaviour
· During the final two months, with the majority of the estate open, the Group made
an operating profit of GBP2.0 million despite severe restrictions in place
· Managed like for like sales outside of London were 92% of prior year. Overall like
for like sales were 75% including transport hubs and Central London pubs
· Tight management of cash burn and recovery of working capital contributed to net
debt only increasing by GBP9 million to GBP187 million
· Accessed GBP100 million of commercial paper through the Covid Corporate Financing
Facility
· Financing and liquidity position underpinned by strength of freehold portfolio
· Interim dividend suspended due to current economic situation.
H1 2021 H1 2020 FY 2020
GBPm GBPm GBPm
Revenue and other income 45.6 167.1 319.7
Adjusted (loss)/profit before tax1 (22.2) 17.9 19.4
Net debt excluding lease liabilities2 187.4 23.0 178.9
All figures above are from continuing operations
1) Adjusted (loss)/profit before tax is the (loss)/profit before tax excluding
separately disclosed items.
2 Net debt comprises cash and short-term deposits, bank overdraft, bank loans, CCFF,
debenture stock and preference shares.
Strategy Update
· Successful trading from staycations in our hotels and pubs with rooms -
particularly in popular tourist destinations - with occupancy levels of 79%,
demonstrating the benefits of our balanced estate
· Utilised closure period to continue capex programme - ensuring our pubs and hotels
are always in prime condition
· Completed the integration of Cotswold Inns & Hotels, which has delivered immediate
benefits
· Concluded the Transitional Services Agreement with Asahi
· Opened The White Horse, Wembley - giving us a foothold in an iconic area that is
currently being redeveloped, and where we were underrepresented
· Accelerated planned implementation of new digital initiatives driven by early
identification of changes in consumer behaviour
· Streamlined central support and Managed Pubs and Hotels teams across the business
· Long term strategy remains focused on providing outstanding food, drink and
hospitality in well-invested, iconic locations.
Current Trading & Outlook
· All pubs temporarily closed due to second national lockdown from 5 November 2020 -
with swift management action taken to achieve minimal stock losses
· 98% of team members on furlough or flexi-furlough
· Like for likes sales in our Managed Pubs and Hotels for the 34 weeks to 21 November
2020 at 69% of prior year
· Strong engagement with, and retention of, Tenants with commercial rent for our
Tenanted Inns again suspended while pubs are under enforced temporary closure
· Well-motivated and prepared teams throughout the business primed to deliver
exceptional customer service on reopening in COVID-secure pubs and hotels
· Structured reopening planned from 2 December 2020
· High consumer confidence in our premium pubs and hotels expected to lead to strong
demand as we reopen the estate in a safe and steady manner.
Commenting on the results, Chief Executive Simon Emeny said: "The imminent roll out of
a vaccine is excellent news for the future. The tightening of the tier system will
present further challenges over the winter months, but we welcome the Prime Minister's
comments that we will see the need for restrictions fall away in the spring. Without
doubt, a return to normality is in sight.
"When the current lockdown was announced, we acted swiftly to implement the lessons
learned last time round and this latest closure has been made with minimal stock
losses. We also immediately placed 98% of our team members - across our pubs, hotels
and in our support functions - on furlough or flexi-furlough, thereby minimising our
cash burn. The extension of the Coronavirus Job Retention Scheme until March 2021
provides a degree of breathing space and will allow us to apply a sensible and measured
approach to costs as we reopen our estate, particularly at the most affected sites in
our city centres.
"We entered this crisis in a position of strength, buoyed by the sale of the Fuller's
Beer Business. We have used the time and space created by the pandemic wisely -
completing targeted investments in our estate, rightsizing our teams and utilising the
support available to manage our cash reserves where possible. It has not been easy, but
prudent financial management, an estate that is 92% freehold, and a strong Balance
Sheet mean that we will be in the best possible position to get back on a growth
trajectory.
"We know our customers want to come back, we know they trust us to look after them and
provide a safe and sensible environment to enjoy a great Fuller's experience and, over
and above this, we have a dedicated and passionate team of people with the ability and
desire to delight, surprise and welcome back those customers.
"We are optimistic about the future in the medium term and beyond, but there is no
doubt that this will be a tough winter and a very different looking Christmas. We will
start to reopen our estate in a measured way, navigating the tier system and the
restrictions that come with it. However, it is important that we see beyond these
obstacles and look at the bigger picture. The excellent news of successful vaccines
gives us confidence where previously there was uncertainty, and with the sensible
decisions we have taken during the pandemic, Fuller's is well-placed for future
success.
"This business is armed with a well-invested and well-balanced, freehold estate,
excellent people, robust financial foundations, a clear and consistent strategy, and
the drive and desire to lead the way out of this crisis. The long-term future for
Fuller's looks positive."
-Ends-
For further information, please contact:
Fuller, Smith & Turner P.L.C.
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 212 managed pubs,
with 1,028 boutique bedrooms, and 176 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 on 020 8996 2198 or by email at
pr@fullers.co.uk.
This statement will be available on the Company's website, www.fullers.co.uk [1]. An
accompanying presentation will also be available from 11.00 on 26 November 2020.
FULLER, SMITH & TURNER P.L.C.
FINANCIAL RESULTS FOR THE 26 WEEKS ENDED 26 SEPTEMBER 2020
CHAIRMAN'S STATEMENT
It has been an incredibly challenging six months for the country, for the hospitality
industry and for Fuller's. The impact of coronavirus has touched every part of the
physical and economic landscape and once again we find ourselves in a state of national
lockdown.
The rollercoaster of emotions from closure, to reopening, through the well-designed and
inspired Eat Out to Help Out scheme and then back down into a quagmire of increasingly
onerous restrictions, tier alert levels and finally back to temporary closure, has been
tough on our business and even tougher on our people.
The Government has been supportive and destructive in almost equal measure - but we are
grateful for the recent extension of the furlough scheme. We urge the Chancellor to
follow this with extensions to the business rates holiday and the VAT reduction. We
know that our sector can lead the economic recovery - however we will need this
longer-term support to rebuild our businesses and return to growth.
In the short term, we need clarity of message and a clear roadmap out of the
coronavirus crisis. We know we can play a major role and we relish the challenge of
doing so. Should the Chancellor need any further encouragement, the net tax deficit
from Fuller's alone for the first six months of the year is over GBP70 million. The
country needs pubs, restaurants and hotels fully open - and soon - for the financial
contribution they make, the jobs they create, and the significant role they play in the
emotional wellbeing of our customers and our teams.
Unfortunately, we again find ourselves in a position where we have had to take the
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