REG - Fuller,Smith &Turner - Results for the 52 weeks to 29 March 2025
11/06/2025 07:00
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RNS Number : 2878M Fuller,Smith&Turner PLC 11 June 2025
STRICTLY EMBARGOED
UNTIL 7AM WEDNESDAY 11 JUNE 2025
FULLER, SMITH & TURNER P.L.C.
("Fuller's", the "Company", or the "Group")
Financial results for the 52 weeks to 29 March 2025
Success today and confidence in tomorrow
Financial and Operational Highlights
52 weeks 52 weeks
ended ended
29 March 30 March
2025 2024
£m £m
Revenue and other income 376.3 359.1
Adjusted EBITDA(1) 67.6 60.8
Adjusted profit before tax(2) 27.0 20.5
Statutory profit before tax 33.8 14.4
Basic earnings per share(3) 47.49p 15.16p
Adjusted earnings per share(3) 34.22p 24.48p
Dividend per share(3) 19.76p 17.75p
Net debt excluding lease liabilities(4) 142.2 133.1
All figures above are from continuing operations.
1 Earnings before interest, tax, depreciation, amortisation, profit on
disposal of property, plant and equipment, and separately disclosed items.
2 Adjusted profit before tax is the profit before tax excluding
separately disclosed items.
3 Per 40p 'A' or 'C' ordinary share. Basic EPS is calculated using
earnings attributable to equity shareholders after tax including separately
disclosed items. Adjusted EPS excludes separately disclosed items.
4 Net debt excluding lease liabilities comprises cash and short-term
deposits, bank overdraft, bank loans, debenture stock and preference shares
net of debt issue costs.
· Revenue up 4.8%, to £376.3 million (FY2024: £359.1 million), driven
by an excellent performance across the estate
· Like for like sales up 5.2%, against a successful prior year
· Impressive profit conversion, with adjusted profit before tax
increasing 32% to £27.0 million (FY2024: £20.5 million)
· Translating to very strong adjusted earnings per share growth - up
40% to 34.22p (FY2024: 24.48p)
· Total dividend increased by 11% to 19.76p (FY2024: 17.75p)
· Completed the initial share buyback programme, which resulted in the
repurchase of 6.5 million 'A' shares - with an average price of £6.13, this
represents a 26% discount to the £8.30 price of the 6.5 million 'A' share
equity placing in 2021
· A new share buyback programme commenced in March 2025 with the
intention of acquiring up to one million 'A' shares - further enhancing
shareholder returns
· Agreed a new £185 million bank facility with a consortium of
existing relationship banks. The unsecured facility is available until 31
August 2028, at an interest margin 75bps lower than existing terms, reflecting
the strong financial position of the Company.
Strategic Highlights
· Another year of impressive growth across the business:
o Food like for like sales increased by 4.8%
o Drink like for like sales increased by 5.3%
o Accommodation like for like sales increased by 5.4%
· Invested £28 million in the existing estate, including 14
transformational schemes including those at The Drayton Court in Ealing and
The Head of the River in Oxford - now a fully electric hotel
· Enhanced returns through proactive estate management:
o Completed the sale of 37 non-core tenanted pubs to Admiral Taverns for
£18.3 million, resulting in a more profitable and sustainable tenanted
business
o Completed the sale of The Mad Hatter for a total consideration of £20
million
o Acquired Lovely Pubs - seven stunning pubs in affluent Warwickshire and
Worcestershire villages for £22.5 million - and The White Swan, Twickenham
· Continued investment in our people at all levels, including further
roll out of Lead your Way programme to our Head Chefs
· Alignment of our operating divisions to reflect our most valuable
customer groups and ensure consistent delivery of an outstanding customer
proposition.
Current Trading and Outlook
· Trading and profit growth momentum continuing into the new financial
year, with like for like sales for the first 10 weeks rising by 4.2%
· Michael Turner retiring as Chairman at the AGM on 22 July 2025, with
Simon Emeny becoming Executive Chairman
· Company well-positioned to continue to deliver excellent returns to
shareholders through future growth and prudent Balance Sheet management.
Chief Executive Simon Emeny said:
"It has been an excellent year for Fuller's. We have continued to build on our
existing momentum and have delivered strong like for like sales growth in our
Managed Pubs and Hotels of 5.2%. We have converted this strong revenue growth
into improved profitability with adjusted profit before tax rising by 32% and
even more pleasing is that these results, combined with our effective
allocation of capital, have delivered impressive adjusted earnings per share
growth of 40%.
"We have started the new financial year well with like for like sales in the
first 10 weeks of the year rising by 4.2%. We have completed our investment at
The Chamberlain in the City of London, one of our largest hotel sites, which
reopened in May and we have a number of clear priorities for the year focused
on our properties, our people and our customer proposition.
"After 18 years as our Chairman, Michael Turner will be retiring at the AGM on
22 July 2025. Michael has played a leading role in Fuller's for 47 years - and
his contribution cannot be underestimated. He retires with our best wishes and
gratitude, and he leaves an incredible legacy.
"Our estate is well invested, predominately freehold, and full of iconic gems
in great locations. Our people are dedicated and engaged, and our customers
are more resilient to economic turbulence than most. Our financial position is
robust and we make sensible decisions for the long-term. I have no doubt that
interesting times are ahead and I'm looking forward with confidence and
excitement."
-Ends-
For further information, please contact:
Fuller, Smith & Turner P.L.C.
Simon Emeny, Chief Executive 020 8996 2000
Neil Smith, Finance Director 020 8996 2000
Georgina Wald, Corporate Comms Manager 020 8996 2198
Instinctif Partners
Justine Warren 020 7457 2010
Forthcoming dates in the financial calendar:
AGM: 22 July 2025
Half year results announcement FY2026: 12 November 2025
Full year results announcement FY2026: 10 June 2026
Notes to Editors:
Fuller, Smith & Turner is a premium pubs and hotels business. With an
outstanding estate of iconic pubs and hotels across the Southern half of
England, our purpose is to create experiences that nourish the soul. At our
heart is the warm and inviting welcome of a fantastic pub or hotel, delivered
by an exceptional team of over 5,000 talented individuals. We have been
delighting our customers - with delicious, fresh, seasonal food, an exciting
drinks range, and beautiful bedrooms - for 180 years. Fuller's has 185 Managed
Pubs and Hotels, with 1,028 bedrooms and 153 Tenanted Inns, all aiming to
ensure that everyone leaves that little bit happier than they arrived.
Photography is available from the Fuller's Press Office on 020 8996 2000 or by
email at pr@fullers.co.uk (mailto:pr@fullers.co.uk) .
This statement will be available on the Company's website, www.fullers.co.uk
(http://www.fullers.co.uk) . An accompanying presentation will be available
from 12 noon on 11 June 2025.
CHAIRMAN'S STATEMENT
In my final year as Chairman, I am delighted to reflect on such an excellent
12 months for your Company. Adjusted profits in the year are up 32% to £27
million driven by our excellent like for like sales growth of 5.2%.
Particularly pleasing is the progress of two important measures for
shareholders - adjusted earnings per share, which are up an extremely
impressive 40%, and total dividends per share, which have increased by 11% -
demonstrating our commitment to a progressive dividend policy.
This strong performance has been achieved despite the business operating in a
challenging and, at times, volatile economic environment. The geopolitical
situation has caused uncertainty in global markets and the decisions made by
the Chancellor in her October budget hit the sector hard and reduced
confidence in hospitality stocks. The changes to National Insurance
contributions took everyone by surprise and I fear it could be terminal for a
number of smaller operators in our market.
The financial prudence that Fuller's has adhered to for decades has always
provided a solid foundation for the business to grow and develop, and we are
in the best possible position today. The Company is very different in its
composition to the one I joined in 1978 - but I am delighted to say that it
has never been stronger. While the trading divisions may be different - with
the off licence business and brewery having been divested - our values of
family, respect, longevity and always doing things the right way have remained
intact and continue to underpin the way we do business.
During the year, I have been impressed with our continued commitment to our
people and our properties. We deliver outstanding training programmes that
enable us to attract and retain the best people, growing our talent from
within wherever possible. I have also been delighted with our excellent
refurbishment programme - always undertaken with our premium customer in mind,
keeping our businesses fresh and relevant. Schemes such as The Head of the
River in Oxford - now a fully electric hotel - underpin our commitment to
sustainability, while others - like The Chamberlain Hotel in the City of
London - ensure we maintain our market-leading position.
We have made some changes to the Board during the year, with Helen Jones
retiring and Jane Bednall joining. I would like to thank Helen for her overall
contribution and particularly for chairing the Remuneration Committee and her
excellent work supporting employee engagement. I am delighted to welcome Jane
who brings a wealth of relevant experience and who will take over this
important people role.
On the financial front, we continue to leverage our excellent capital
allocation framework, and I'm delighted to see our share buyback programme
continue. Your Company is in rude financial health and well-placed for
whatever the world throws our way.
DIVIDEND
The Board is pleased to announce a final dividend of 12.35p (FY2024: 11.12p)
per 40p 'A' and 'C' ordinary share and 1.235p (FY2024: 1.112p) per 4p 'B'
ordinary share, representing an increase of 11%. This will be paid on 24 July
2025 to shareholders on the share register as at 4 July 2025. The total
dividend of 19.76p (FY2024: 17.75p) per 40p 'A' and 'C' ordinary share and
1.976p (FY2024: 1.775p) per 4p 'B' ordinary share represents an 11%
year-on-year increase.
A FOND FAREWELL
It has been an incredible honour and a real privilege to have had the
opportunity to contribute to advancing the Fuller's business during my 47
years with the Company. Over the past 33 years, I have been fortunate to
fulfil the roles of Managing Director, Chief Executive and in 2007 I took over
from my mentor, Anthony Fuller, as Chairman. During that time, I have been
blessed to work with some very gifted individuals, who were part of great
teams within our business, and our success over the last three decades is due
to them. I would like to thank all of them for making my job so fulfilling and
such fun. I will be retiring at the AGM on 22 July this year.
Throughout my tenure I have strived to make sure that the Board protects and
develops Fuller's to ensure it is in an even stronger position for the next
generation. The strength of performance of the business over the last year
provides me with comfort that we have succeeded in that objective.
In Simon Emeny, with whom I have worked for 28 years, we have an excellent new
Executive Chairman, and I have no doubt that he will continue to promote our
ethos. He may be the first Chairman of this amazing Company who is not a
member of the three founding families - but he truly is family in all but
name. His dedication, commitment and, most importantly, achievements for
Fuller's are second to none and I am delighted to be handing over the reins to
such a strong successor. Simon has an excellent team to support him. I will be
watching with pride and look forward to seeing the results of his stewardship.
He is more than a colleague - I count him as a true friend, and I wish him
every success in the future.
Finally, I wish to pay tribute to our incredible team members across the
business. They are the people who delight our customers every day - and they
are the source of our success. I have loved working with them, and I would
like to thank those who work for us now, and those who have contributed to our
success during my tenure. Our team members really do make the difference and
enable us to stand apart from our peers. Thank you for your hard work, your
loyalty and your good humour.
Michael Turner
Chairman
10 June 2025
CHIEF EXECUTIVE'S REVIEW
OVERVIEW
It has been an excellent year for Fuller's. We have continued to build on our
existing momentum and have delivered strong like for like sales growth in our
Managed Pubs and Hotels of 5.2%. We have converted this strong revenue growth
into improved profitability with adjusted profit before tax rising by 32%.
Even more pleasing is that these results, combined with our effective
allocation of capital, has delivered impressive adjusted earnings per share
growth of 40%.
In addition, we have delivered against our strategic objectives - contributing
to the long-term results that are so important to us. Our long-term strategy
and vision remain unchanged, and it is worth reflecting on the actions we have
taken over the last few years to put us in the position of strength we are in
today.
Making the right decisions at the right time has always been a hallmark of
this Company. The transfer of 23 high quality but smaller Managed Pubs to our
Tenanted Inns division, followed by the sale of 37 non-core Tenanted pubs,
further improved EBITDA in our high-quality Tenanted estate while raising £18
million of capital. We subsequently put that capital to work with the
acquisition of Lovely Pubs - seven top end, predominately freehold, sites that
immediately enhanced our existing, excellent Managed estate.
Combined with this, we have been effectively implementing our capital
allocation framework to secure the financial strength of the business and
enhance returns for shareholders. This improved financial strength has been
recognised by the banking markets as evidenced by our recent bank refinancing,
where we agreed with our existing relationship lenders a new £185 million
bank facility for the next three years at a significantly lower cost. This
provides the business with headroom to enable further capital investment and
acquisitions at a lower annual interest rate.
In market conditions where equity values are low, particularly relative to the
asset value of the business, we see significant value for shareholders through
the implementation of a share buyback programme. In January 2025 we completed
the initial share buyback programme, which resulted in the repurchase of 6.5
million 'A' shares, representing 12% of the 'A' shares in issue. These shares
were repurchased at an average price of £6.13, which represents a 26%
discount to the £8.30 price of the 6.5 million 'A' share equity placing in
2021. Subsequently we have initiated a further buy back of an additional one
million 'A' shares, which is on-going.
This excellent capital management, in combination with the improved underlying
profits of the business, has driven impressively strong growth in earnings per
share at a time of economic turbulence, global uncertainty and increased costs
due, primarily, to rising wage costs.
We are in a very strong position to both grow organically and to take
advantage of appropriate opportunities that may arise.
FIT FOR THE FUTURE
With the financial foundations in place, we want to ensure that our people and
our properties are ready to tackle the challenges ahead, and that we continue
to deliver an outstanding offer and proposition for our premium customer base.
The strategic direction of the Company and its long-term success is driven by
the Board. After 18 years as our Chairman, Michael Turner will be retiring at
the AGM on 22 July 2025. Michael has played a leading role in Fuller's for 47
years - and his contribution cannot be underestimated. Since the day I joined
Fuller's in 1996, Michael has been inspirational and supportive. He retires
with our best wishes and gratitude, and he leaves an incredible legacy.
I will be taking on the role of Executive Chairman. It is a move I am
relishing - and I see the move as evolution, not revolution. I'm looking
forward to continuing to lead our excellent Executive Team and to taking
Fuller's on the next stage of its journey.
In addition, Fred Turner is being promoted to Chief Operating Officer, which
will broaden his responsibilities, bringing sales, marketing and operations
across both Managed and Tenanted together to leverage the synergies and
maximise the opportunity across these key functions. Fred has successfully led
the Managed Pubs and Hotels business since June 2019, and I know the business
will benefit as he takes on this wider commercial remit. We have also
strengthened our Board with the appointment of Jane Bednall - an experienced
Non-Executive Director who will have a particular focus on employee
engagement.
Continued investment in our people and properties
Our commitment to continuous investment in our people at all levels is an area
that we are particularly proud of and the Lead Your Way development programme,
now in its second year, is a great example of that.
Having taken all our General Managers and the majority of our Support Centre
managers through this detailed and extensive programme, we are making great
progress with our Head Chefs. The impact has been outstanding - our leaders
are motivated, confident and making real change.
We are excited to continue with our very successful apprenticeship programmes
and will be recruiting a further 200 apprentices, both back and front of
house, next year. The commitment we make to our teams, and the investment we
make in their personal and professional development, has helped us to drive up
retention rates and encourage internal promotions, and the average tenure for
our General Managers now stands at 11 years.
To further aid this goal, we will be rolling out two new programmes - a Level
2 Customer Service apprenticeship and a Level 4 Head Chef apprenticeship. We
already utilise all our Apprenticeship Levy and, as further recognition of our
success, we were delighted to see Handerline Morency of The Plough at East
Sheen take the title of Apprentice of the Year at the NITA awards - our second
successive triumph in this nationally-recognised competition.
During the full year, we have invested £28 million in the Managed estate,
including 14 major schemes, garden investments, and the refurbishment of 277
bedrooms - 27% of our room stock. The results have justified the decision to
invest, and we know that our premium clientele expect our iconic pubs and
hotels to be maintained at a high standard. It is good for our customers, good
for our teams and good for business.
We also enhanced our estate through acquisitions during the year. In August
2024 we acquired Lovely Pubs - an outstanding collection of seven gorgeous
sites in villages across Worcestershire and Warwickshire. This acquisition
enhances our estate, and gives us a foothold in a new, affluent area that
borders existing businesses. Our asset management strategy is highlighted with
this deal. The seven pubs cost us £22.5 million - just over the £20 million
we gained from the sale of The Mad Hatter Hotel in Southwark. We finished the
financial year with another acquisition - The White Swan in Twickenham, a real
gem in our heartland.
A premium customer base that is more resilient to economic fluctuations
During the year, we have grown sales by 4.8% and improved our operating
margins by 1.1 percentage points. The key to this sales growth has been the
excellent work we have undertaken to gain an even deeper understanding of our
customers. Not just who they are, but where they spend their money, what
drives decisions around choice of location and frequency of visit and ensuring
that our marketing attracts them in the first instance and retains them going
forwards.
Having identified our most valuable customer groups, we have aligned our pubs
accordingly into three key operational areas - London City, which includes our
transport hub sites, Premium Neighbourhood, and Destination - which includes
Bel & The Dragon, Cotswold Inns & Hotels and Lovely Pubs. Aligning the
estate by customer cohort allows us to implement standards and an offer across
businesses that we know appeal to the core customer, while retaining the
flexibility and individuality that our pubs are famous for.
We have supported this with upweighted digital communications, and this has
helped drive our pre-booked sales business. This important and growing element
now accounts for 29% of all Managed Pubs and Hotels revenue and pre-booked
sales grew by 7% in the last full year. Our General Managers are seeing real
benefit from this move - in terms of planning and labour scheduling - and all
our Managed businesses now auto-confirm bookings of eight people and under. We
have seen a 27% increase in pre-booked sales in our gardens for the coming
summer and there is still a sizeable opportunity to grow this further in
relation to pre-booked outdoor covers.
We have a range of systems and digital touchpoints in place across the
business and one of our priorities for the year ahead is to embrace Artificial
Intelligence (AI). We are already identifying areas that AI could support -
particularly around customer sentiment understanding, price strategy, room
rate management and labour productivity. It represents an exciting opportunity
and I look forward to seeing the team realise its potential.
Life is too good to waste
Underpinning everything that we do is our commitment to ESG and our Life is
too good to waste programme. We are on target to meet our Net Zero commitments
and we have already reduced our operational emissions by 58% against our 2020
baseline. Other successes during the year include the reopening The Head of
the River in Oxford, which is now fully electric following an extensive
investment, our first Gold Award from Green Tourism, which went to The Red
Lion in Hillingdon, and a further reduction in our gas consumption of 8%.
The Life is too good to waste programme covers planet, people and community -
and we have made progress in all areas. During the year, we rolled out our
Call Time On It initiative, which was launched to reinforce that unacceptable
behaviour has no place in the Company. It comes as a direct result of
listening to our colleagues across the business through both the annual
Happiness Index survey and through My Voice, which provides a year-round
mechanism for team members to let us know how they are feeling and of the
issues they face.
The third pillar of the campaign is around community, and we have had a great
year of fundraising across the Company, with donations for the full year
totalling £273k. During the year we agreed to extend our partnership with
Special Olympics GB for another two years and we were delighted to hit the
milestone of £1 million raised for this excellent charity during our
partnership. The holistic approach we have taken with our charity partner also
saw the launch, during the year, of our Guide to Neurodiverse Recruitment,
which we wrote with the support of Special Olympics GB and LVS Schools.
Employment levels among people with Intellectual Disabilities are
frighteningly low and we are delighted to play a small part in addressing
this.
TENANTED INNS
Our Tenanted Inns have had an excellent year and the business has never been
in better shape. The combination of the actions we took in moving some smaller
Managed Pubs and Hotels into the Tenanted business, and selling 37 non-core
sites has led to an incremental rise in Tenanted Inns EBITDA per pub of 23%.
It remains an excellent cash generator for the business, as well as a source
of innovation, and provides flexibility for us to move pubs to the best
operating model for that business, at that time.
In line with our Managed business, our Tenanted pubs also deliver a quality
offer to a premium customer base - and this provides a degree of economic
resilience for our Tenants. We continue to invest jointly with our engaged and
entrepreneurial Tenants and I am delighted to report that profits in this part
of the business rose by 5% during the year.
FINANCIAL REVIEW
We are pleased to have delivered another strong set of financial results,
making significant progress on the prior year, with total revenue up 4.8% from
£359.1 million to £376.3 million. Despite the challenging environment, we
have improved operating margins from 9.6% to 10.7%, resulting in adjusted
profit before tax growing by an impressive 32% to £27.0 million (FY2024:
£20.5 million).
Not only have we improved profitability, but we have also further strengthened
the Balance Sheet through delivering on our capital allocation framework. This
effective utilisation of capital will drive long-term growth and returns for
shareholders, as demonstrated in this year's results.
In the past two years we have made significant strategic decisions to
proactively manage our estate, to strengthen our financial position and
improve returns. We completed on the sale of The Mad Hatter, Southwark for
£20 million (£17 million already received with a further £3 million to be
received at the end of the lease), and we sold 37 non-core pubs to Admiral
Taverns for £18.3 million. These proceeds have been reinvested in acquiring
the high quality, largely freehold, Lovely Pubs business for an enterprise
value of £22.5 million in August 2024. We also acquired the freehold of The
White Swan in Twickenham in March 2025.
We have continued to invest in our existing estate to maintain its premium
position, with a total of £27.8 million invested in FY2025, including a
number of significant projects such as £4.0 million on The Chamberlain, City
of London, £2.2 million on The Drayton Court, Ealing and £1.9 million on The
Head of the River, Oxford. This strategic investment and proactive management
of the estate, coupled with the 23 pubs transferred from Managed to Tenanted
in the prior year, means the estate is well positioned to continue to prosper
and to deliver the premium experience our customers expect.
In the year, we have returned £34.6 million to our shareholders; we paid a
dividend of £10.7 million to shareholders and £23.9 million was used for
share buybacks as part of our ongoing share buyback programme. A programme to
buy back 6.5 million 'A' shares was completed in January 2025 and a further
one million 'A' shares buyback commenced in March 2025. The returns to
shareholders in the year were an increase of £12.2 million or 54% on the
prior year.
In March 2025, we refinanced our banking facilities with new unsecured
facilities of £185 million, comprising a revolving credit facility of £100
million and a term loan of £85 million. These facilities have been agreed for
a tenure of three years through to August 2028 with the option to extend for a
further two years. The new facilities' interest margin is 75bps lower than our
previous facilities' terms which will lower our annual interest cost and
demonstrates the continued commitment to the business from our relationship
banks.
Finally, to further demonstrate the financial strength of the business and
reduce the exposure to future liabilities, we completed a full buy-in of the
Fuller's pension plan with Legal & General. The plan is fully funded,
saving £2.6 million a year in employer contributions, while placing the plan
with a well-regarded insurer who could provide an enhanced level of security
and member service.
Managed Pubs and Hotels like for like sales increased by 5.2% on the prior
year, outperforming the market on average by 2.5 percentage points. All
categories of revenue showed significant like for like growth against the
prior year, with food up by 4.8%, drinks up by 5.3% and accommodation sales up
by 5.4%.
Tenanted Inns revenue was marginally down on prior year, but profits have
increased due to the significant estate management over the last two years. In
July 2024 we sold 37 sites to Admiral Taverns and in the prior year we
transferred 23 sites from Managed to Tenanted. The average EBITDA per site has
grown by 23% demonstrating the value of the proactive management of the
estate.
The strong underlying growth in profitability along with the effective
application of our capital allocation framework has seen adjusted earnings per
share grow to 34.22p, up 40% on prior year.
Total net finance costs (before separately disclosed items) have decreased by
£0.6 million to £13.4 million. The reduction in costs is due to the decrease
in the Bank of England base rate from 5.25% at the beginning of the year to
4.50%. The Group has a zero premium cap and collar over £60 million of the
term facility which has a floor of 3.10% and a cap of 5.00%. This gave some
protection at the beginning of the year through to August 2024 when the rate
was cut to 5.00%. Overall, this has meant that the average cost of borrowing
was 7.6% in the current financial year compared to 8.0% in the prior year.
The net position on separately disclosed items is a profit before tax of £6.8
million (FY2024: £6.1 million expense). This principally consists of the
profit on disposal of properties of £18.9 million which includes The Mad
Hatter, Southwark for £17.2 million and the sale of 37 sites to Admiral
Taverns at a profit to book value of £1.0 million. This is net of an
impairment charge of £10.4 million, of which £9.8 million is in relation to
the write down of 26 properties and a further £1.0 million on the write down
of goodwill net of the reversal of impairment on one property.
The underlying effective tax rate has decreased to 27.4% (FY2024: 28.3%). The
decrease in effective tax rate is mainly due to the increased profit before
tax and falling depreciation on assets not qualifying for capital allowances.
Net debt (excluding leases) was at £142.2 million which was an increase of
£9.1 million on the prior year end (FY2024: £133.1 million). Although net
debt has increased on last year, with increased profits, debt leverage has
reduced to 2.3 times (FY2024: 2.5 times).
The defined benefit pension scheme surplus has decreased by £16.9 million to
£0.4 million accounting surplus (FY2024: £17.3 million surplus). We have
completed a full buy-in of the Fuller's pension plan which involved the
purchase of an insurance policy from Legal & General which, for accounting
purposes, is considered an investment decision with the resulting investment
loss being recognised through Other Comprehensive Income.
The proposed final dividend of 12.35p per 'A' and 'C' ordinary share (FY2024:
11.12p), together with the interim dividend of 7.41p per share already paid
makes a total of 19.76p per share which is an increase of 11% on the prior
year.
CURRENT TRADING AND OUTLOOK
We have continued to build on the momentum of the last year with like for like
sales in the first 10 weeks of the year rising by 4.2%. We have completed our
investment at The Chamberlain in the City of London, one of our largest hotel
sites, which reopened in May and we have a number of clear priorities for the
year focused on our properties, our people and our customer proposition.
We will continue to be prudent with our Balance Sheet - but with the
confidence that we are well-funded and able to take advantage of any
appropriate acquisition opportunities. Our priority remains delivering great
returns for our shareholders, while looking after our wonderful pubs and
hotels and our fantastic people.
Our estate is well invested, predominately freehold, and full of iconic gems
in wonderful locations. Our people are dedicated and engaged, and our
customers are more resilient to economic turbulence than most. Our financial
position is robust and we make sensible decisions for the long-term. I have no
doubt that interesting times are ahead and I'm looking forward with confidence
and excitement.
Simon Emeny
Chief Executive
10 June 2025
Condensed Group Income Statement
For the 52 weeks ended 29 March 2025
52 weeks ended 29 March 2025 52 weeks ended 30 March 2024
Note Before separately disclosed items Separately disclosed items Total Before separately disclosed items Separately disclosed items Total
£m £m £m £m £m £m
Revenue 2 376.3 - 376.3 359.1 - 359.1
Operating costs 3 (335.9) (12.1) (348.0) (324.6) (6.8) (331.4)
Operating profit 40.4 (12.1) 28.3 34.5 (6.8) 27.7
Finance costs 4 (13.4) - (13.4) (14.0) 0.7 (13.3)
Profit on disposal of properties 3 - 18.9 18.9 - - -
Profit before tax 27.0 6.8 33.8 20.5 (6.1) 14.4
Tax 5 (7.4) 0.8 (6.6) (5.8) 0.5 (5.3)
Profit for the year 19.6 7.6 27.2 14.7 (5.6) 9.1
Group Note 52 weeks ended 52 weeks
ended
29 March 2025
30 March 2024
Pence
Pence
Earnings per share per 40p 'A' and 'C' ordinary share
Basic 6 47.49 15.16
Diluted 6 46.98 15.04
Adjusted 6 34.22 24.48
Diluted adjusted 6 33.85 24.29
Earnings per share per 4p 'B' ordinary share
Basic 6 4.75 1.52
Diluted 6 4.70 1.50
Adjusted 6 3.42 2.45
Diluted adjusted 6 3.39 2.43
Condensed Group Statement of Comprehensive Income
For the 52 weeks ended 29 March 2025
Note 52 weeks 52 weeks
ended ended
29 March 2025 30 March 2024
£m £m
Profit for the year 27.2 9.1
Net actuarial losses on pension schemes 12 (18.3) (0.3)
Tax related to items that will not be reclassified to profit or loss 5 4.5 0.1
Other comprehensive losses for the year, net of tax (13.8) (0.2)
Total comprehensive income for the year, net of tax 13.4 8.9
Condensed Group Balance Sheet
29 March 2025
Note At 29 March 2025 At 30 March 2024
£m £m
Non-current assets
Intangible assets 27.1 28.6
Property, plant and equipment 8 585.7 581.9
Investment properties 1.3 1.5
Retirement benefit obligations 12 1.6 18.7
Right-of-use assets 10 52.8 58.7
Other financial assets - 0.1
Total non-current assets 668.5 689.5
Current assets
Inventories 4.6 4.0
Trade and other receivables 12.0 8.4
Current tax receivable - 0.1
Cash and cash equivalents 11 13.8 12.2
Total current assets 30.4 24.7
Assets classified as held for sale 3.0 8.4
Total assets 701.9 722.6
Current liabilities
Trade and other payables (53.3) (59.7)
Provisions (0.4) (0.8)
Lease liabilities 10 (5.2) (4.4)
Current tax payable (0.2) -
Total current liabilities (59.1) (64.9)
Non-current liabilities
Borrowings 11 (156.0) (145.3)
Lease liabilities 10 (55.6) (61.5)
Retirement benefit obligations 12 (1.2) (1.4)
Deferred tax liabilities (18.3) (18.2)
Total non-current liabilities (231.1) (226.4)
Net assets 411.7 431.3
Capital and reserves
Share capital 23.8 25.4
Share premium account 53.2 53.2
Capital redemption reserve 5.3 3.7
Own shares (30.1) (32.9)
Retained earnings 359.5 381.9
Total equity 411.7 431.3
Condensed Group Statement of Changes in Equity Share Share Capital Own Retained Total
For the 52 weeks ended 29 March 2025
capital
premium
redemption
shares
earnings
£m
£m
account
reserve
£m
£m
£m
£m
Group
At 1 April 2023 25.4 53.2 3.7 (21.3) 381.6 442.6
Profit for the year - - - - 9.1 9.1
Other comprehensive expense for the year - - - - (0.2) (0.2)
Total comprehensive income for the year - - - - 8.9 8.9
Shares purchased to be held in ESOT or as treasury - - - (12.4) - (12.4)
Shares released from ESOT and treasury - - - 0.8 (0.3) 0.5
Dividends (note 7) - - - - (10.0) (10.0)
Share-based payment expense - - - - 1.7 1.7
At 30 March 2024 25.4 53.2 3.7 (32.9) 381.9 431.3
Profit for the year - - - - 27.2 27.2
Other comprehensive expense for the year - - - - (13.8) (13.8)
Total comprehensive income for the year - - - - 13.4 13.4
Shares purchased to be held in ESOT or as treasury - - - (23.9) - (23.9)
Shares released from ESOT and treasury - - - 0.1 - 0.1
Treasury shares cancelled in the year (1.6) - 1.6 26.6 (26.6) -
Dividends (note 7) - - - - (10.7) (10.7)
Share-based payment expense - - - - 1.5 1.5
At 29 March 2025 23.8 53.2 5.3 (30.1) 359.5 411.7
Condensed Group Cash Flow Statement Note 52 weeks ended 52 weeks ended
For the 52 weeks ended 29 March 2025
29 March 30 March
2025 2024
£m £m
Profit before tax 33.8 14.4
Net finance costs before separately disclosed items 4 13.4 14.0
Separately disclosed items 3 (6.8) 6.1
Depreciation and amortisation 27.2 26.3
Adjusted EBITDA 67.6 60.8
Difference between pension charge and cash paid (1.5) (2.6)
Share-based payment charge 1.5 1.7
Change in trade and other receivables (1.0) 0.6
Change in inventories (0.6) 0.2
Change in trade and other payables (6.1) 6.9
Cash impact of operating separately disclosed items 3 (0.2) 1.7
Cash generated from operations 59.7 69.3
Tax paid (2.0) (1.0)
Net cash generated from operating activities 57.7 68.3
Cash flow from investing activities
Purchase of property, plant and equipment (53.2) (27.2)
Sale of property, plant and equipment and assets held for sale 40.5 -
Net cash outflow from investing activities (12.7) (27.2)
Cash flow from financing activities (23.9) (12.4)
Purchase of own shares
Receipts on release of own shares to option schemes 0.1 0.5
Interest paid (10.0) (10.4)
Preference dividends paid 7 (0.1) (0.1)
Equity dividends paid 7 (10.7) (10.0)
Repayment of bank loans 11 (124.0) -
Drawdown of bank loans 11 134.3 4.5
Repayment of the debenture 11 - (6.0)
Principal elements of lease payments 11 (8.3) (8.7)
Payment of loan arrangement fees 11 (0.8) (0.4)
Net cash outflow from financing activities (43.4) (43.0)
Net movement in cash and cash equivalents 1.6 (1.9)
Cash and cash equivalents at the start of the year 11 12.2 14.1
Total cash and cash equivalents at the end of the year 11 13.8 12.2
Notes to the Condensed Financial Statements
For the 52 weeks ended 29 March 2025
1. Preliminary statement
The consolidated financial statements of Fuller, Smith & Turner P.L.C. for the 52 weeks ended 29 March 2025 were authorised for issue by the Board of Directors on 10 June 2025.
The financial information presented does not constitute the Group's annual
report and accounts for either the 52 weeks ended 29 March 2025 or the 52
weeks ended 30 March 2024 within the meaning of Section 435 of the Companies
Act 2006, but is derived from those accounts. The Group's statutory accounts
for 2024 have been delivered to the Registrar of Companies and those for 2025
will be delivered following the Company's annual general meeting. The
independent auditor's reports on both the 2025 and 2024 accounts were not
qualified or modified. The independent auditor's reports for both 2025 and
2024 did not contain any statements under Section 498 of the Companies Act
2006.
The Group financial statements are presented in Sterling and all values are shown in millions of pounds (£m) rounded to the nearest hundred thousand pounds, except when otherwise indicated. The accounting policies used have been applied consistently, except where set out below, and are described in full in the statutory financial statements for the 52 weeks ended 29 March 2025, which will be mailed to shareholders on or before 20 June 2025 and delivered to the Registrar of Companies. The financial statements will also be available from the Company's registered office: Pier House, 86-93 Strand-on-the-Green, London, England, W4 3NN, and on its website, from that date.
Going concern
At 29 March 2025, the Group's Balance Sheet comprises of 87% of the estate
value being freehold properties and available headroom on facilities of £49.7
million and £13.8 million of cash and resulting net debt of £142.2 million.
During the year, the Group secured a new facility of £185 million until
August 2028. The unsecured banking facilities of £185 million, are split
between a revolving credit facility of £100 million and a term loan of £85
million. Under the facilities agreement, the covenant suite (tested quarterly)
consist of net debt to adjusted EBITDA (leverage) and adjusted EBITDA to net
finance charges. The Group's debentures of £20 million are not due for
repayment until 2028.
The Group has modelled financial projections for the going concern period,
which is defined as the 12-month period from the date of approval of these
financial statements to the end of Q1 FY2027, based upon two scenarios, the
"base case" and the "downside case". The base case is the Board approved
FY2026 budget as well as the Q1 FY2027 plan which forms part of the Board
approved three-year plan. The base case assumes that sales will continue to
grow, but with modest food and drink volume growth. The base case assumes that
staff costs will increase, impacted by the National Minimum Wage and
employers' National Insurance costs resulting in continued wage inflation
across all job roles. The base case scenario indicates that the Group will
have sufficient resources to continue to settle its debts as they fall due and
operate well within its covenants for the going concern assessment period.
The Group has also modelled a "downside case" which assumes that sales volumes
reduce by 10% in FY2026 and 5% in FY2027 from the "base case" and that staff
costs increase at a higher rate than assumed in the "base case". In this
"downside case", there are mitigating actions that management could implement
which have not been modelled, such as overhead cost reduction and reduction of
capital expenditure and other property spend to essential maintenance. Further
mitigating actions would also include disposals of licensed and unlicensed
properties. Under this scenario, the Group would still have sufficient
resources to settle liabilities as they fall due and headroom on its covenants
through the duration of the period.
The Group has also performed a reverse stress test to ascertain how far EBITDA
would have to decline before it failed the covenant tests. EBITDA would need
to decrease by 48% from the base case to fail the covenant tests. The
Directors have concluded that the reduction in EBITDA required to breach the
covenants is too remote and that this scenario is therefore considered
implausible.
The Directors have also determined that, over the period of the going concern
assessment, there is not expected to be a significant financial impact because
of climate change.
After due consideration of the matters set out above, the Directors are
satisfied that there is a reasonable expectation that the Group has adequate
resources to continue in operational existence for the going concern
assessment period, being the 12 months from the date of signing these
financial statements through to the end of Q1 FY2027, and have therefore
adopted the going concern basis in the preparation of these financial
statements.
2. Segmental Analysis
Operating Segments
For management purposes, the Group's operating segments are:
- Managed Pubs and Hotels, which comprises managed pubs and managed
hotels.
- Tenanted Inns, which comprises pubs operated by third parties
under tenancy or lease agreements.
The most important measure used to evaluate the performance of the business is
adjusted profit, which is the profit before tax, adjusted for separately
disclosed items. The operating segments are organised and managed separately
according to the nature of the products and services provided, with each
segment representing a strategic operating unit. The managed pubs and hotels
operating segments have been aggregated to one reportable segment on the basis
they have similar economic characteristics. Economic indicators assessed in
determining that the aggregated operating segments share similar
characteristics included expected future financial performance, operating and
competitive risks and return on capital. As such the operating segments meet
the aggregation criteria in paragraph 12 IFRS 8 Operating Segments.
As segment assets and liabilities are not regularly provided to the Chief
Operating Decision Maker, the Group has elected, as provided under IFRS 8
Operating Segments, not to disclose a measure of segment assets and
liabilities.
52 weeks ended 29 March 2025 Managed Pubs and Hotels Tenanted Unallocated(1) Total
£m Inns £m £m
£m
Revenue
Sale of goods and services 304.4 23.9 - 328.3
Accommodation income 36.7 - - 36.7
Total revenue from contracts with customers 341.1 23.9 - 365.0
Rental income 1.6 9.7 - 11.3
Revenue 342.7 33.6 - 376.3
Segment result 47.6 14.4 (21.6) 40.4
Operating separately disclosed items (12.1)
Operating profit 28.3
Profit on disposal properties 18.9
Net finance costs (13.4)
Profit before tax 33.8
Other segment information
Additions to property, plant & equipment 49.3 3.4 - 52.7
Depreciation and amortisation 23.3 3.2 0.7 27.2
Impairment of property and goodwill net of reversals 9.0 1.4 - 10.4
52 weeks ended 30 March 2024 Managed Pubs and Hotels Tenanted Unallocated(1) Total
£m Inns £m £m
£m
Revenue
Sale of goods and services 288.1 24.1 - 312.2
Accommodation income 35.5 - - 35.5
Total revenue from contracts with customers 323.6 24.1 - 347.7
Rental income 1.7 9.7 - 11.4
Revenue 325.3 33.8 - 359.1
Segment result 41.6 13.7 (20.8) 34.5
Operating separately disclosed items (6.8)
Operating profit 27.7
Net finance costs (13.3)
Profit before tax 14.4
Other segment information
Additions to property, plant & equipment 23.0 3.9 0.1 27.0
Depreciation and amortisation 22.4 3.0 0.9 26.3
Impairment of property and right-of-use assets net of reversals 5.1 3.2 - 8.3
1 Unallocated expenses represent primarily the salaries and costs of
central management and support services. Unallocated capital expenditure
relates to additions to the head office
3. Separately Disclosed Items
The Group presents separately disclosed items on the face of the Income
Statement for those material items of income and expense which, because of the
nature or expected infrequency of the events giving rise to them, merit
separate presentation to allow shareholders to understand better the elements
of financial performance in the year.
52 weeks ended 52 weeks ended
29 March 2025 30 March 2024
£m £m
Amounts included in operating profit:
Impairment of properties, right-of-use assets and assets classified as held (10.4) (8.3)
for sale net of reversal of impairments (note 9)
Insurance and legal claims - 0.4
VAT provision release - 1.1
Professional fees (0.9) -
Pension past service costs (0.8) -
Total separately disclosed items included in operating profit (12.1) (6.8)
Profit on disposal of properties 18.9 -
Separately disclosed finance credits/(expenses):
Finance credit on net pension liabilities 0.8 0.7
Finance charge on the write down of arrangement fees (0.8) -
Total separately disclosed finance credits - 0.7
Total separately disclosed items before tax 6.8 (6.1)
Separately disclosed tax:
Profit on disposal of properties (0.7) -
Other items 1.5 0.5
Total separately disclosed tax 0.8 0.5
Total separately disclosed items 7.6 (5.6)
The impairment charge of £10.4 million (30 March 2024: £8.3 million) relates
to the write down to their recoverable value of 23 properties (£9.2 million),
three assets held for sale properties (£0.6 million), the write down of
goodwill (£1.0 million), net of the reversal of impairment for one property
(£0.4 million).
Professional fees of £0.9 million include £0.7 million of fees incurred as
part of the acquisition of Lovely Pubs and £0.2 million of fees incurred as
part of the bank facility refinancing.
The pension past service cost of £0.8 million relates to the recognition of
an additional liability in relation to the equalisation of retirement ages
between 17 May 1990 and 21 July 1992.
£18.9 million of profit has been recognised on the sale of 45 properties,
including 37 tenanted sites sold to Admiral Taverns (there were no disposals
of properties in the 52 weeks ended to 30 March 2024).
The finance charge on the write down of arrangement fees of £0.8 million
relates to the remaining loan arrangement fee on the previous facility at the
date of refinancing.
The cash impact of operating separately disclosed items before tax for the 52
weeks ended 29 March 2025 was £0.2 million cash outflow (30 March 2024: £1.7
million cash inflow).
4. Finance Costs
52 weeks ended 52 weeks ended
29 March 2025 30 March 2024
£m £m
0.3 0.3
Finance Income
Interest income from financial assets
Finance Costs
Interest expense arising on:
Financial liabilities at amortised cost - loans and debentures (10.4) (11.1)
Financial liabilities at amortised cost - preference shares (0.1) (0.1)
Financial liabilities at amortised cost - lease liabilities (3.2) (3.1)
Net Finance costs before separately disclosed items (13.4) (14.0)
Finance credit on net pension liabilities (note 3) 0.8 0.7
Finance charge on the write down of arrangement fees (note 3) (0.8) -
Net finance costs after separately disclosed items (13.4) (13.3)
5. Taxation
Group
52 weeks ended 52 weeks ended
29 March 2025 30 March 2024
£m £m
Tax charged in the Income Statement
Corporation tax 2.2 1.7
Total current tax expense 2.2 1.7
Deferred tax:
Origination and reversal of temporary differences 5.1 4.0
Amounts over provided in previous years (0.7) (0.4)
Total deferred tax expense 4.4 3.6
Total tax charged in the Income Statement 6.6 5.3
Analysed as:
Before separately disclosed items 7.4 5.8
Separately disclosed items (0.8) (0.5)
6.6 5.3
Reconciliation of the Total Tax Charge
The tax expense in the Income Statement for the year is lower (2024: tax expense is higher) than the standard rate of corporation tax in the UK of 25% (2024: 25%). The differences are reconciled below:
52 weeks ended 52 weeks ended
29 March 2025
30 March 2024
£m
£m
Profit before tax expense 33.8 14.4
Accounting profit multiplied by the UK standard rate of corporation tax of 25% 8.5 3.6
(2024: 25%)
Items not deductible for tax purposes 0.5 0.2
Deferred tax over provided in previous years (0.7) (0.4)
Net movements in respect of property (1.7) 1.9
Total tax charged in the Income Statement 6.6 5.3
Deferred tax charged/(credited) to the Income Statement 52 weeks ended 52 weeks ended
29 March 2025
30 March 2024
£m
£m
Deferred tax depreciation 1.3 1.2
Unrealised capital gains (on PP&E) (3.0) (1.2)
Retirement benefit obligations 0.3 0.8
Tax losses 1.9 2.9
Other 3.9 (0.1)
Deferred tax in the Income Statement 4.4 3.6
Tax relating to items credited to the Statement
of Comprehensive Income
Deferred tax:
Net actuarial losses on pension scheme (4.5) (0.1)
Total tax credited in the Statement of Comprehensive Income (4.5) (0.1)
6. Earnings Per Share
Group
52 weeks ended 52 weeks ended
29 March 2025 30 March 2024
£m £m
Profit attributable to equity shareholders 27.2 9.1
Separately disclosed items net of tax (7.6) 5.6
Adjusted earnings attributable to equity shareholders 19.6 14.7
Number Number
Weighted average share capital 57,270,000 60,043,000
Dilutive outstanding options and share awards 625,000 482,000
Diluted weighted average share capital 57,895,000 60,525,000
40p 'A' and 'C' ordinary share Pence Pence Pence
Basic earnings per share 47.49 15.16 12.98
Diluted earnings per share 46.98 15.04 12.96
Adjusted earnings per share 34.22 24.48 16.10
Diluted adjusted earnings per share 33.85 24.29 16.07
4p 'B' ordinary share Pence Pence
Basic earnings per share 4.75 1.52
Diluted earnings per share 4.70 1.50
Adjusted earnings per share 3.42 2.45
Diluted adjusted earnings per share 3.39 2.43
For the purposes of calculating the number of shares to be used above, 'B'
shares have been treated as one-tenth of an 'A' or 'C' share. The earnings per
share calculation is based on earnings from continuing operations and on the
weighted average ordinary share capital which excludes shares held by trusts
relating to employee share options and shares held in treasury of 4,599,962
(2024: 3,410,735).
Diluted earnings per share amounts are calculated using the same earnings
figure as for basic earnings per share, divided by the weighted average number
of ordinary shares outstanding during the year plus the weighted average
number of ordinary shares that would be issued on the conversion of all the
dilutive potential ordinary shares into ordinary shares.
Adjusted earnings per share are calculated on profit before tax excluding
separately disclosed items and on the same weighted average ordinary share
capital as for the basic and diluted earnings per share. Adjusted earnings per
share measures have been included as the Directors consider that these
measures better reflect the underlying earnings of the Group.
7. Dividends
52 weeks ended 52 weeks ended
29 March 2025 30 March 2024
£m £m
Declared and paid during the year
Equity dividends on ordinary shares:
Final dividend for 2024: 11.12p (2023: 10.0p) 6.5 6.1
Interim dividend for 2025: 7.41p (2024: 6.63p) 4.2 3.9
Equity dividends paid 10.7 10.0
Dividends on cumulative preference shares (note 4) 0.1 0.1
Proposed for approval at the Annual General Meeting
Final dividend for 2025: 12.35p (2024: 11.12p) 6.8 6.5
The pence figures above are for the 40p 'A' ordinary shares and 40p 'C' ordinary shares. The 4p 'B' ordinary shares carry dividend rights of one-tenth of those applicable to the 40p 'A' ordinary shares. Own shares held in the employee share trusts do not qualify for dividends as the Trustees have waived their rights. Dividends are also not paid on own shares held as treasury shares.
8. Property, Plant and Equipment
Group Land & buildings - owned & used Plant machinery Fixtures & fittings Total
£m Land & buildings - owned & lessor & vehicles £m £m
£m £m
Cost
At 1 April 2023 496.4 111.6 6.3 187.2 801.5
Additions 7.7 5.2 - 14.1 27.0
Disposals (0.1) (0.1) - (2.8) (3.0)
Transfer of use (30.2) 30.2 - - -
Transfer to asset held for sale (1.4) - - (0.3) (1.7)
At 30 March 2024 472.4 146.9 6.3 198.2 823.8
Additions 34.9 1.7 - 16.1 52.7
Disposals (3.2) (15.6) - (9.8) (28.6)
Transfer to asset held for sale (3.1) - - (0.3) (3.4)
At 29 March 2025 501.0 133.0 6.3 204.2 844.5
Depreciation and impairment
At 1 April 2023 70.0 11.3 1.7 135.2 218.2
Provided during the year 4.9 1.7 - 13.1 19.7
Disposals - - - (2.7) (2.7)
Transfer of use (4.8) 4.8 - - -
Impairment loss net of reversals (note 9) 3.8 3.2 - - 7.0
Transfer to assets held for sale (0.1) - - (0.2) (0.3)
At 30 March 2024 73.8 21.0 1.7 145.4 241.9
Provided during the year 6.0 1.5 - 13.1 20.6
Disposals (1.3) (1.7) - (8.9) (11.9)
Impairment loss net of reversals (note 9) 8.8 - - - 8.8
Transfer to assets held for sale (0.4) - - (0.2) (0.6)
At 29 March 2025 86.9 20.8 1.7 149.4 258.8
Net book value at 29 March 2025 414.1 112.2 4.6 54.8 585.7
Net book value at 30 March 2024 398.6 125.9 4.6 52.8 581.9
Net book value at 1 April 2023 426.4 100.3 4.6 52.0 583.3
9. Impairment
Group 52 weeks ended 52 weeks
29 March 2025
ended
£m
30 March
2024
£m
Impairment losses
Property, plant and equipment 9.2 9.1
Right-of-use assets - 1.3
Assets held for sale(1) 0.6 -
Intangible assets 1.0 -
Impairment reversals - Property, plant and equipment (0.4) (2.1)
Total net impairment charge 10.4 8.3
(1 Assets held for sale were impaired after classification to assets held for
sale, therefore under IFRS 5 this is an adjustment to fair value.)
During the 52 weeks ended 29 March 2025, the Group recognised an impairment
loss of £9.2 million (2024: £9.1 million) on property, plant and equipment
and an adjustment to fair value of £0.6 million (2024: nil) on assets held
for sale in respect of the write down of 26 properties where their asset
values exceeded the higher of fair value less costs to sell or their value in
use. The losses were driven principally by changes in the local competitive
environment in which the pubs are situated. Net of the impairment loss there
is £0.4 million (2024: £2.1 million) of impairment reversal recognised for
one pub where investment has led to a significant growth in performance.
10. Leases
Amounts recognised in the Balance Sheet
Group 2025 2024
£m £m
Right-of-use assets
Properties 52.5 58.6
Equipment 0.3 0.1
52.8 58.7
Lease liabilities
Current 5.2 4.4
Non-current 55.6 61.5
60.8 65.9
Set out below are the carrying amounts of right-of-use assets recognised and the movements during the period:
Group Property Equipment Total
£m £m £m
Net carrying value as at 30 March 2024 58.6 0.1 58.7
Lease amendments(1) (0.2) 0.4 0.2
Depreciation (5.9) (0.2) (6.1)
Net carrying value as at 29 March 2025 52.5 0.3 52.8
(1) Lease amendments include lease terminations, modifications, reassessments and extensions to existing lease agreements.
11. Analysis of Net Debt
52 weeks ended 29 March 2025 At 30 March Cash Non At 29 March
flows
cash(1)
2024
£m
£m 2025
£m
£m
Cash and cash equivalents:
Cash and short-term deposits 12.2 1.6 - 13.8
12.2 1.6 - 13.8
Financial liabilities:
Lease liabilities (65.9) 8.3 (3.2) (60.8)
(65.9) 8.3 (3.2) (60.8)
Debt:
Bank loans(2) (123.8) (9.5) (1.2) (134.5)
Debenture stock (19.9) - - (19.9)
Preference shares (1.6) - - (1.6)
Total borrowings (145.3) (9.5) (1.2) (156.0)
Net debt (199.0) 0.4 (4.4) (203.0)
52 weeks ended 30 March 2024 At 1 April Cash Non At 30 March
flows
cash(1)
2023
£m
£m 2024
£m
£m
Cash and cash equivalents:
Cash and short-term deposits 14.1 (1.9) - 12.2
14.1 (1.9) - 12.2
Financial liabilities:
Lease liabilities (71.8) 8.7 (2.8) (65.9)
(71.8) 8.7 (2.8) (65.9)
Debt:
Bank loans(2) (119.4) (4.1) (0.3) (123.8)
Debenture stock (25.9) 6.0 - (19.9)
Preference shares (1.6) - - (1.6)
Total borrowings (146.9) 1.9 (0.3) (145.3)
Net debt (204.6) 8.7 (3.1) (199.0)
(1) Non-cash movements relate to the amortisation of arrangement fees,
arrangement fees accrued, and movements in lease liabilities.
(2) Bank loans are net of arrangement fees and cash flows include the payment
of arrangement fees.
12. Pensions
The amount included in the Balance Sheet arising from the Group's obligations
in respect of its defined benefit retirement plan are:
2025 2024
£m £m
Fair value of Scheme assets 86.0 112.3
Present value of Scheme liabilities (85.6) (95.0)
Surplus in the Scheme 0.4 17.3
Included within the total present value of Group and Company Scheme
liabilities of £85.6 million (2024: £95.0 million) are assets and
liabilities which are entirely unfunded. These are shown separately on the
Balance Sheet as there is no right to offset the assets of the funded Scheme
against the unfunded Scheme.
2025 2024
£m £m
Retirement benefit obligations - included in non-current assets 1.6 18.7
Retirement benefit liabilities - included in non-current liabilities (1.2) (1.4)
Surplus in the Scheme 0.4 17.3
Defined benefit obligation Fair value of Scheme assets Net defined surplus
2025 2024 2025 2024 2025 2024
£m £m £m £m £m £m
Balance at beginning of the year (95.0) (98.8) 112.3 113.4 17.3 14.6
Included in profit and loss
Net interest credit (4.5) (4.6) 5.3 5.3 0.8 0.7
Administration expenses - - (0.1) (0.3) (0.1) (0.3)
Past service costs (0.8) - - - (0.8) -
(5.3) (4.6) 5.2 5.0 (0.1) 0.4
Included in Other Comprehensive Income
Actuarial losses relating to:
Actual return less expected return on Scheme's assets - - (28.2) (4.0) (28.2) (4.0)
Experience gains arising on Scheme liabilities 9.9 3.7 - - 9.9 3.7
9.9 3.7 (28.2) (4.0) (18.3) (0.3)
Other
Employer contributions - - 1.5 2.6 1.5 2.6
Benefits paid 4.8 4.7 (4.8) (4.7) - -
4.8 4.7 (3.3) (2.1) 1.5 2.6
Balance at end of the year (85.6) (95.0) 86.0 112.3 0.4 17.3
Key assumptions
The key assumptions used in the valuation of the Scheme are set out below:
2025 2024 2023
Years Years Years
Mortality assumptions
Current pensioners (at 65) - males 21.4 21.4 22.0
Current pensioners (at 65) - females 23.8 23.8 24.2
Future pensioners (at 65) - males 22.7 22.7 23.3
Future pensioners (at 65) - females 25.2 25.2 25.6
The Scheme is now closed to future accrual. The average age of the members who
were active at closure is 60 for males and 58 for females. The average age of
all non-pensioners is 59.
Key financial assumptions used in the valuation 2025 2024 2023
of the Scheme
Rate of increase in pensions in payment 2.95% 3.05% 3.20%
Discount rate 5.75% 4.85% 4.75%
Inflation assumption - RPI 3.00% 3.10% 3.20%
Inflation assumption - CPI (pre 2030/post 2030) 2.10%/3.00% 2.20%/3.10% 2.3%/3.2%
Assets in the Scheme 2025 2024
£m £m
Corporate bonds - 46.0
Index linked debt instruments 1.3 31.6
Overseas equities - 8.0
Alternatives - 20.8
Cash 1.3 3.6
Annuities 83.4 2.3
Total market value of assets 86.0 112.3
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