REG-Fuller, Smith & Turner PLC Fuller, Smith & Turner PLC: Business Update and Trading Statement

Fuller Smith & TurnerAnnouncement

15/11/2019 07:05

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   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.

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   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 £31m.  

   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.

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   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

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