Fuller's sales up 6.3% in managed and 5% in tenanted

During the first nine weeks of this year like-for-like sales rose 5.5% for managed pubs and like-for-like profits were up 2% in the tenanted estate.

Beer and cider volumes rose 4% across the year but fell 2% in the last nine weeks.

The company reported total revenue for the year up 12% to £321.5m with EBITDA up 8% to £58.7m and adjusted pre-tax profits rising 7% to £36.4m.

During the year the company opened eight new pubs and acquired a 51% stake in craft cider and pizza concept The Stable​. It has predicted at least four more new sites will open in the current year.

The company said there had been record levels of investment in the existing estate, with “excellent returns on redeveloped sites”.

The company said that its Managed Pubs and Hotels continue to outperform the industry with like for like growth of 6.3%, generating total revenues of £213.8m (2014: £186m) - an increase of 15%. Operating profits across its 188-strong managed estate increased by 11% to £25m (2014: £22.5m), which it said reflected “the increased capital investment in our estate and 108 weeks of closure while these redevelopments took place”.

Managed like for like food sales were up by 7.8%, drinks sales up 5.6% and accommodation increased by 7.3% during the year.

It said: “Next year, we intend to continue this programme with an even greater number of projects scheduled. Acquisitions and investment in our current pubs have helped to realise our vision of creating and operating stylish pubs with a focus on delicious, fresh cooked food and an excellent portfolio of premium drinks. Our sales have increased in all areas of the business.”

The company said that like for like profits rose by 5% across its Tenanted Inns business with total profits rising by 2% to £12.6m (2014: £12.3m). Average EBITDA per pub increased by 5%, with total EBITDA increasing by 2% to £14.2m (2014: £13.9m). Three pubs, The Duke of York in Tunbridge Wells, The Bear & Ragged Staff in Romsey and Grand Central in Brighton, were transferred to the group’s managed estate and two pubs sold.

The group’s net debt increased from £139.8m at the start of the year to £162.6m as a result of acquisitions and the continued investment in its existing estate. Total capital expenditure for the year of £56.3m included the purchase of 51% of The Stable and the acquisition of six new pubs. It also built and opened two new riverside pubs and has continued investments in the refurbishment of its existing estate.

During the year, the company said it successfully arranged new £180m bank loan facilities and a further £20m one year fixed term loan. The new £180m facilities have a five year term expiring in August 2019, have no amortisation requirements and provide £30m of additional funding over and above the former arrangements, which were due to expire in May 2015.

It said that the new financial year has got off to a good start with solid sales for the nine weeks to 30 May 2015. Like for like sales in its Managed Pubs and Hotels have risen by 5.5% and like for like profits in its Tenanted Inns have increased by 2%. However, beer and cider volumes have decreased by 2%.

Since the year end, the company has purchased The King’s Head in Earl’s Court Village and opened a new site for The Stable on the waterfront in Plymouth. It said it was looking forward to opening another riverside pub, The Sail Loft on Greenwich Reach, later this year and has plans to open at least another four sites for The Stable (Cardiff, Winchester, Southampton and Whitechapel.

Chief Executive Simon Emeny said: “It has been another year of excellent progress for the company and I am delighted to be reporting growth in all three areas of the business. Our Managed Pubs and Hotels business continues to outperform the industry, the Fuller’s Beer Company has seen growth in all channels and our Tenanted business has had an outstanding year.

“We have a robust business that has continuously evolved over time, keeping us at the forefront of our industry and providing a base for us to always look for new opportunities to keep the business fresh, relevant and in a strong position to grow for the future. These opportunities have to complement our overall vision to provide a first class experience for discerning customers.

“We have taken on new companies, new brands and new ideas over the last two years and while they have all started well, the best is yet to come. We are looking forward to completing the integration of these new businesses and building for our future. We will also continue to invest heavily in our existing pub estate and develop our range of brands.

“We have a successful business model, interesting fledgling opportunities, a first class, predominately freehold estate, a team with passion and ability and a very healthy balance sheet. This gives me confidence that we will continue to deliver strong results for our customers, our employees and our shareholders.”