TIDMFSTA
RNS Number : 3722G
Fuller,Smith&Turner PLC
20 November 2015
FULLER, SMITH & TURNER P.L.C.
("Fuller's" or "the Company")
Half year results for the 26 weeks ended 26 September 2015
A strong first half from a great team of people
Financial Highlights
-- Adjusted earnings per share(1) up 11% to 30.74p (2014/15: 27.67p)
-- Adjusted profit before tax(2) up 10% to GBP21.6 million (2014/15: GBP19.6 million)
-- Revenue up 10% to GBP177.7 million (2014/15: GBP161.6 million)
-- EBITDA(3) up 8% to GBP33.3 million (2014/15: GBP30.7 million)
-- Interim dividend up 8% to 6.90p (2014/15: 6.40p)
-- Net debt to EBITDA(4) 3.0 times (2014/15: 2.6 times)
Operational Indicators
-- Like for like sales growth of 5.6% in Managed Pubs and Hotels
- against strong comparatives from last year
-- Good performance from Tenanted Inns, with like for like profits(5) increasing by 3%
-- A solid start for The Fuller's Beer Company with total beer and cider volumes up by 1%
Strategy Update
-- Acquired two new freehold pubs, plus the freeholds of three
existing sites including The Barrowboy & Banker on London
Bridge
-- Continued to invest in our people - with over 1,000 training
days per month and a rise in the hourly rate of all team members on
a development programme
-- Opened The Stable in Plymouth and Winchester and relocated
The Stable in Bath to a premium location
-- Strong performance from new beer brands - Oliver's Island is
now our second best-selling cask ale in the UK and Frontier sales
have doubled year on year
-- Continued focus on investing in our premium pub estate and brand portfolio to maintain clear differentiation over the competition
Current Trading
-- Managed Pubs and Hotels like for like sales up by 5.8% in first 33 weeks
-- Tenanted Inns like for like profits for first 33 weeks increased by 4%
-- Total beer and cider volumes have increased by 1% in the first 33 weeks
-- Purchased two new pubs since the period end - The Great
Northern Railway Tavern in Hornsey, North London, and The Sutton
Arms, Farringdon, London
-- Opened The Stable, Southampton in November 2015
Commenting on the results, Chief Executive Simon Emeny said: "We
have had a strong first half with all areas of the business in
growth, demonstrating the clear trading momentum underway in the
business. It is particularly rewarding, coming on the back of a
good prior year. During the last six months, our Managed Pubs and
Hotels have had excellent growth, the Tenanted Division has put in
another good performance and the Beer Company has also made
progress. Our commitment to providing the best drinks range, the
most delicious, freshly-cooked food, fantastic surroundings and
service that is second to none continues to deliver good
experiences for our customers and good returns for our
shareholders.
"The second half of the year has started well, with a number of
our pubs - particularly in West London - benefitting from a boost
during the Rugby World Cup. For the first 33 weeks, our like for
like sales in our Managed Pubs and Hotels have risen by 5.8% and
like for like profits in our Tenanted Inns have risen by 4%. Beer
and cider volumes have increased by 1% for the first 33 weeks.
"We have purchased two new sites since the period end. The Great
Northern Railway Tavern is in the North London suburb of Hornsey,
an area where we are currently under represented. The other is The
Sutton Arms, in the City, close to Farringdon Station. In addition,
we opened The Stable in Southampton, in the cultural quarter of
this university city. We have an exciting pipeline of acquisitions
and will be opening The Sail Loft on Greenwich Reach in
January.
"In short, having completed the first half of this financial
year, I look forward to the rest of the year with optimism. We have
the best team in the industry and iconic pubs, combined with the
financial firepower and business acumen to stay ahead of the
competition. Fuller's is a company with clear values, a consistent
and well communicated strategy and I know that we will continue to
deliver great beer and cider, delicious food and outstanding
service to our customers, great careers for our people and solid
returns for our shareholders."
1. Calculated using adjusted profit after tax and the same
weighted average number of shares as for the basic earnings per
share and using a 40p ordinary share. Basic earnings per share were
29.84p (2014/15: 25.33p)
2. Adjusted profit before tax is the profit before tax excluding
exceptional items. Statutory profit before tax was GBP21.2 million
(2014/15: GBP18.3 million)
3. Pre-exceptional earnings before interest, tax, depreciation,
profit on disposal of properties and amortisation
4. Net debt to EBITDA is adjusted as appropriate for
acquisitions and disposals in the last 12 months
5. Operating profit before exceptional items
-Ends-
For further information, please contact:
Fuller, Smith & Turner P.L.C.
Simon Emeny, Chief Executive
(press) 020 8996 2175
James Douglas, Finance Director
(analysts) 020 8996 2000
Georgina Wald, Corporate 020 8996 2198/07831
Communications Manager 299801
Instinctif Partners
Paul Downes 07900 244888
Justine Warren 07785 555692
Notes to Editors:
Fuller, Smith and Turner P.L.C. is an independent traditional
family brewer founded in 1845 and is based at the historic Griffin
Brewery in Chiswick, London, where brewing has taken place
continuously since 1654. The Company runs 189 Managed Pubs and
Hotels and 203 Tenanted pubs, with a focus on outstanding cask ale,
great wine, exemplary service and delicious fresh, home-cooked
food. The Company also has 651 boutique bedrooms in its Managed
estate. The Fuller's pub estate stretches from Brighton to
Birmingham and from Portishead to the Greenwich Peninsula,
including 172 locations within the M25. In 2014, Fuller's acquired
a 51% stake in The Stable, a craft cider and gourmet pizza
restaurant business. The Stable has 10 sites in the South and South
West of England.
The Fuller's Beer Company brews a portfolio of premium beers
including London Pride, ESB, Organic Honey Dew and Frontier Craft
Lager. In June 2013, the Company acquired Cornish Orchards, a craft
cider maker producing a range of award-winning ciders and premium
soft drinks. Fuller's is also the UK distributor for Sierra Nevada,
the premier US craft beer.
Photography is available from the Fuller's Press Office on 020
8996 2175 or by email at pr@fullers.co.uk.
Copies of this statement, the Interim Report and results
presentation will be available on the Company's website,
www.fullers.co.uk. The presentation will be available from 12 noon
on 20 November 2015.
FULLER, SMITH & TURNER P.L.C.
HALF YEAR RESULTS FOR THE 26 WEEKS ENDED 26 SEPTEMBER 2015
CHAIRMAN'S STATEMENT
I am once again delighted to announce an excellent set of
results. We continue to demonstrate market leadership, design some
outstanding pubs and hotels, work in true partnership with our
tenants to the benefit of all and develop the most exquisite beers
and ciders. We have also acquired two new freehold Fuller's pubs
and opened three new The Stable restaurants in the period under
review.
The team has delivered against our financial targets. Total
revenue has increased by 10% to GBP177.7 million (2014/15: GBP161.6
million), with a rise in adjusted profit before tax of 10% to
GBP21.6 million. I am also pleased to announce a rise in adjusted
earnings per share, a figure that is key to our shareholders, of
11% to 30.74p (2014/15: 27.67p).
The largest part of our business, our Managed Pubs and Hotels,
has again outperformed the industry average by a substantial
margin, with like for like sales increasing by 5.6% (2014/15:
6.5%). A significant proportion of this growth is driven by the
exceptional standard of customer service which we provide, the
result of a training programme that has more than doubled in the
last three years and the introduction of the service coach
programme. Through a thoroughly professional management team
anticipating upcoming trends and constant development of our team
members to home grow the managers of the future, we will always
ensure that we are at the leading edge.
After 15 years at the helm, our Tenanted Director Mike Clist is
retiring. He has led an outstanding operation which, on the back of
a string of impressive results has, during this half year, seen
like for like profits rise by 3%. As well as building the best
tenanted business in the industry, Mike has also been instrumental
in liaising with Government on behalf of the industry during recent
turbulent times and I would like to take this opportunity to give
him my heartfelt thanks.
Finally, The Fuller's Beer Company has also had a good six
months, with total beer and cider volumes rising by 1% in a
declining and increasingly fragmented market. It gives me great
pleasure to see brands like Oliver's Island and Frontier growing
sales and attracting new people to the beer market. With the
addition of Cornish Orchards' excellent ciders, we have a premium
range of products suitable for any pub, bar, restaurant or
supermarket.
As ever, all of our success is down to the talent and dedication
of our people. I am so proud of all they achieve and I congratulate
them on their success. I have seen many progress on the career
ladder and I am delighted Simon and his directors continue to
develop the stars of the future.
DIVIDEND
The Board is pleased to announce an increase of 8% in the
interim dividend to 6.90p (2014/15: 6.40p) per 40p 'A' and 'C'
ordinary share and 0.69p (2014/15: 0.64p) per 4p 'B' ordinary
share. This will be paid on 4 January 2016 to shareholders on the
share register as at 4 December 2015.
Michael Turner
Chairman
20 November 2015
CHIEF EXECUTIVE'S REVIEW
(MORE TO FOLLOW) Dow Jones Newswires
November 20, 2015 02:00 ET (07:00 GMT)
We have had a strong first half with all areas of the business
in growth, demonstrating the clear trading momentum underway in the
business. It is particularly rewarding, coming on the back of a
good prior year. During the last six months, our Managed Pubs and
Hotels have had excellent growth, the Tenanted Division has put in
another good performance and the Beer Company has also made
progress. Our commitment to providing the best drinks range, the
most delicious, freshly-cooked food, fantastic surroundings and
service that is second to none continues to deliver good
experiences for our customers and good returns for our
shareholders.
While it is our core businesses, Fuller's Inns and The Fuller's
Beer Company, that have made the largest contributions, the
targeted Company investments of the last two years - our
acquisition of the Cornish Orchards cider farm and a 51% stake in
The Stable craft cider and gourmet pizza restaurants - are
delivering ahead of expectations. In addition, the acquisition of
the UK distribution rights for Sierra Nevada has also helped to
open new doors and give us access to a different customer base,
which we have then capitalised on with the innovative craft range
launched by our outstanding brewing team.
The last six months has seen even more focus on our people - as
they are the front line in growing Fuller's in the future.
Following on from the introduction of innovative developments in
recruitment and training, particularly in our Managed Pubs, we have
recently announced new pay rates for those team members who are on
one of our six development programmes. I have always stated that
one of my goals is to increase the amount of internal promotions we
make and this is another step in achieving that aim, by rewarding
those who want to develop their careers in Fuller's.
In particular, I'm delighted with the progress we have made with
our Chef's Guild programme. We are now developing our food teams
from kitchen porter upwards. We have three levels of scholarship
and the courses culminate in a graduation ceremony that was this
year co-hosted by triple Michelin-starred chef, Pierre Koffmann, an
aspirational host in anyone's book.
We have also taken the opportunity during the period to secure
the long-term future of some of our sites by acquiring the
freeholds of The Barrowboy & Banker at London Bridge and The
Blackbird in Earl's Court, as well as the freehold of The Stable in
Poole. The purchase of properties that we currently operate will
never provide the same earnings enhancement as the acquisition of a
new site, but it is strategically important for us to secure the
future of key locations for the long term.
At the beginning of this year, we revised the transfer price of
products supplied by The Fuller's Beer Company to Fuller's Inns and
the basis of allocating shared costs. To aid comparability with the
current results, we have included additional disclosures to present
the prior period segmental information based on these revised
transfer prices and allocations. The percentage changes quoted for
the divisions are against these comparable results for the prior
period.
FULLER'S INNS
It has been another good six months for Fuller's Inns, with a
rise in our operating profit of 14% and an increase in like for
like sales in our Managed Pubs and Hotels of 5.6%. The Tenanted
Inns division has also seen another good six months, with like for
like profits rising by 3%.
We've added two new freehold pubs to the estate during the
period - The King's Head in Earl's Court Village and The Queen's
Head in Kingston. Since the period end, we have also added another
two pubs to the estate - The Great Northern Railway Tavern in
Hornsey, which gives us a foothold in a growing area of North
London where we are currently under-represented, and The Sutton
Arms in London EC1, close to Farringdon, an area being transformed
by Crossrail.
We have continued to invest heavily in our pub estate and have
spent GBP7.8 million on our pubs during the period on schemes
including The Hydrant at Monument, The Grand Central in Brighton,
The Sun and 13 Cantons in the heart of Soho, The Inn of Court,
Holborn and The Queen's Head in Brook Green, West London. As ever,
we look to stay one step ahead of the competition, keeping our pubs
fresh, relevant and appealing to our customers.
Managed Pubs and Hotels
Like for like sales have risen by 5.6% during the period, with
food sales up 8.3%, drinks sales up 4.9% and accommodation rising
by 2.2%. These results are down to the hard work of our well
trained pub teams and we believe that service is one of the key
elements to growing these figures further. The investment we have
made in how we recruit, develop and retain our people has been
substantial - our investment in training alone has more than
doubled over the last two years and we are on track to deliver
around 13,000 training days in this full year.
As part of this development plan, we now have a full and
structured career path for both front of house and kitchen teams
from bar staff and kitchen porter to general manager and head chef.
We are also identifying the operations managers of the future and
building their skills base ready for promotion when a vacancy
arises. We are delighted that anyone who is on one of these
development programmes is recognised with an increase in pay - a
move we have also extended to our service coaches who will all be
receiving, as a minimum, the new National Living Wage rate of
GBP7.20 per hour from the end of November, regardless of age.
Of course having great service, delicious food, the best premium
drinks range and inspiring venues is still not enough on its own -
you need to market the pub too. Today's consumer, armed with ever
improving smart phones and technology, expects to be communicated
with in that manner. We now have online booking for tables in 90%
of our pubs, have improved the direct booking process for our
hotels and we have been busy taking a fresh look at our whole
customer relationship management system, which has resulted in
better targeted emails with relevant offers for a very responsive
customer base.
In short, this means that we are now attracting the best team
members and the most discerning customers - and ensuring that we
have the right development plans and career progression for the
recruits and the best food, drinks, accommodation, venues and
service for the guests. And at the same time as doing all this, we
continually watch the market to ensure we are always a step ahead
of the competition.
Within our Managed Pubs and Hotels business, we have also been
busy with The Stable, opening new sites and, in a highly successful
move, relocating the Bath restaurant to a new, prime location with
plenty of outside seating - which has become a trademark of The
Stable sites where this can be accommodated. Our new site in
Plymouth has traded well, becoming an anchor site, attracting other
businesses and therefore increasing footfall in the area. In
Winchester, we have a site very close to the cathedral, in the
heart of the city and the team have made innovative use of Facebook
to promote the restaurant to the local community.
We continue to work in tandem with The Stable founders, Richard
and Nikki Cooper, and we are seeing benefits from improved
processes, particularly in terms of margin and payroll. We have a
full pipeline of sites coming on stream in the coming weeks.
Southampton opened earlier this month and Cheltenham, Cardiff and
Birmingham are imminent. Our expectation is that we will have 15
sites by the year end.
Tenanted Inns
It's been another great year for our Tenanted Inns - and a
momentous one too, as we say goodbye to Tenanted Director Mike
Clist who has headed this successful division for the last 15
years. His replacement, Fred Turner, is already in situ and the two
have had a comprehensive handover in recent months.
Tenanted like for like profits have risen by 3%, the average
EBITDA per pub has increased by 2%, and we have invested GBP1.0
million in improving the fabric of our tenanted pubs. As with our
managed estate, these rises come on the back of a strong first half
for last year too. During the period, we have disposed of two
tenanted pubs - The Prince of Wales in Hillingdon and The White
Hart in Hanwell.
Of particular note in the Tenanted estate is the like for like
rise in own beer volumes, which are up by 5%, supporting our view
that the balanced, premium portfolio offered by The Fuller's Beer
Company is a fundamental benefit to Fuller's tenants. The
concurrent like for like rise in wine sales of 3% reflects the way
our Tenanted estate is moving to a more premium position, with food
sales becoming increasingly important, and we expect this trend to
continue.
We continue to invest in online training, to help our tenants
develop their own team members, and our popular Tenants Extra
magazine is a useful way of sharing ideas and information among the
tenanted community.
THE FULLER'S BEER COMPANY
Volumes for The Fuller's Beer Company have risen by 1%, while
sales have risen 3%, reflecting the change in both our product and
sales channel mix. We have reinvested this growth into new sales
channels, such as Westside Drinks, increased marketing and carried
out further developments at Cornish Orchards. This has resulted in
profits remaining level.
The craft beer revolution is well and truly here and the way
today's consumer has so much respect for the skill of the brewer
and demand for new flavours and formats provides a good opportunity
for Fuller's. While we continue to focus our marketing activity on
London Pride, our other brands are also flourishing. Oliver's
Island has been selling well and this golden ale, which has
attracted new people to the ale category, is now our second biggest
cask ale brand in the UK.
(MORE TO FOLLOW) Dow Jones Newswires
November 20, 2015 02:00 ET (07:00 GMT)
Our investment in Cornish Orchards continues to deliver and we
are ahead of our investment plan. The cider is well received by
consumers, volumes have increased and we have gained new listings.
It also provides a valuable addition to our premium portfolio. Our
wine division also performed well, with sales up 5% on last year,
against an overall decline in wine sales according to CGA data.
Frontier, our craft lager launched in 2013, has continued to
grow. Volumes have doubled year on year and we are gaining a place
on the counter in more bars across the UK. We have recently
launched the brand in 330ml cans - which has helped to take it to a
whole new range of craft beer venues where it can be hard to keep a
permanent tap listing for any brand. We have also launched two
other brands in 330ml cans - Wild River and Black Cab Stout. Craft
beer bars like cans because they are quicker to chill than bottles,
are easily recyclable and look fantastic.
Although the beer market is still a challenging place to
operate, as the customer moves towards smaller, lower volume,
higher priced brands - while looking for interesting tastes and
flavours - we are in a good position to meet this new customer
demand. We have a strong range, the industry's leading brewing team
and the heritage and commitment to quality to ensure that the beers
we produce will sell, be easy to manage for the bar owner and come
in a suitable format for each specific venue.
FINANCIAL PERFORMANCE
The Group's net debt has increased by GBP28.6 million during the
period to GBP191.2 million, following strong cash generation from
operations, offset by high levels of investment, particularly in
securing the freeholds of great locations for our long term. Total
capital expenditure for the period of GBP53.4 million included
acquiring two new pubs, three freehold properties and significant
investment in our existing estate.
Of our GBP200 million of facilities arranged last year, GBP130
million has now been extended to August 2020. Of the remaining
facility, GBP20 million expires within 12 months and GBP50 million
expires in August 2019. Our undrawn committed facilities at 26
September 2015 are GBP28.5 million and this, and the freedom to add
more funding lines, gives us the flexibility to invest in future
opportunities as they arise.
EBITDA increased by 8% to GBP33.3 million (2014/15: GBP30.7
million). Our increased capital expenditure has resulted in the
ratio of net debt to proforma EBITDA increasing to 3.0 times
(2014/15: 2.6 times). Net finance costs before exceptional items
decreased marginally from GBP3.1 million to GBP2.9 million as a
result of the combined benefit of our new facilities and the
prevailing lower interest rates.
Net exceptional costs before tax of GBP0.4 million consists of
profits on property disposals of GBP1.6 million, offset by
acquisition costs expensed of GBP0.5 million, the reversal of
onerous lease provisions of GBP0.2 million, deemed remuneration of
the future purchase of shares in The Stable of GBP1.3 million and a
net interest charge on our pension deficit of GBP0.4 million.
Statutory profit before tax after exceptional items was GBP21.2
million (2014/15: GBP18.3 million). Tax has been provided for at an
effective rate of 20.4% (2014/15: 21.4%) on adjusted profits. The
overall effective tax rate of 21.2% (2014/15: 23.0%) was higher as
the result of non-tax deductible exceptional items. The net impact
of these items results in basic earnings per share increasing to
29.84p (2014/15: 25.33p).
The deficit on the defined benefit pension scheme has decreased
marginally from the year end to GBP24.2 million (March 2015:
GBP24.4 million, September 2014: GBP20.2 million). The reduction in
the value of scheme liabilities due to higher discount rate
assumptions has been offset by a reduction in the value of the plan
assets.
During the period 184,000 'A' ordinary 40p shares and 1,000,000
'B' ordinary 4p shares were purchased by the Company into treasury
for a total of GBP3.3 million. In addition 66,028 'A' ordinary 40p
shares and 247,321 'B' shares were purchased for GBP1.0 million by
the Trustees of the Company's Share Incentive Plan to cover future
issuance.
CURRENT TRADING AND PROSPECTS
The second half of the year has started well, with a number of
our pubs - particularly in West London - benefitting from a boost
during the Rugby World Cup. For the first 33 weeks, our like for
like sales in our Managed Pubs and Hotels have risen by 5.8% and
like for like profits in our Tenanted Inns have risen by 4%. Beer
and cider volumes have increased by 1% for the first 33 weeks.
We have purchased two new sites since the period end. The Great
Northern Railway Tavern is in the North London suburb of Hornsey,
an area where we are currently under represented. The other is The
Sutton Arms, in the City, close to Farringdon Station. In addition,
we opened The Stable in Southampton, in the cultural quarter of
this university city. We have an exciting pipeline of acquisitions
and will be opening The Sail Loft on Greenwich Reach in
January.
In short, having completed the first half of this financial
year, I look forward to the rest of the year with optimism. We have
the best team in the industry and iconic pubs, combined with the
financial firepower and business acumen to stay ahead of the
competition. Fuller's is a company with clear values, a consistent
and well communicated strategy and I know that we will continue to
deliver great beer and cider, delicious food and outstanding
service to our customers, great careers for our people and solid
returns for our shareholders.
Simon Emeny
Chief Executive
20 November 2015
FULLER, SMITH & TURNER P.L.C.
FINANCIAL HIGHLIGHTS
FOR THE 26 WEEKS ENDED 26 SEPTEMBER 2015
Unaudited Unaudited Audited
26 weeks 26 weeks 52 weeks
ended ended ended
26 September 27 September Change 28 March
2015 2014 2015/2014 2015
GBPm GBPm GBPm
Revenue 177.7 161.6 10% 321.5
Adjusted profit
(1) 21.6 19.6 10% 36.4
Adjusted earnings
per share (2) 30.74p 27.67p 11% 51.51p
EBITDA (3) 33.3 30.7 8% 58.7
Dividend per share
(4) 6.90p 6.40p 8% 16.60p
Net debt (5) 191.2 155.9 162.6
Pro forma net debt
/ EBITDA (6) 3.0 times 2.6 times 2.7 times
1 Adjusted profit is the profit before tax excluding exceptional
items. Statutory profit before tax was GBP21.2 million (2014:
GBP18.3 million).
2 Calculated using adjusted profit after tax and the same
weighted average number of shares as for the basic earnings per
share and using a 40p ordinary share. Basic earnings per share were
29.84p (2014: 25.33p).
3 Pre-exceptional earnings before interest, tax, depreciation,
loss on disposal of plant and equipment, pension fund curtailment
gain and amortisation.
4 Calculated on a 40p ordinary share.
5 Net debt comprises cash and short term deposits, bank
overdraft, bank loans, debenture stock and preference shares.
6 Pro forma net debt / EBITDA is adjusted as appropriate for
acquisitions and disposals in the last 12 months.
FULLER, SMITH & TURNER P.L.C.
CONDENSED GROUP INCOME STATEMENT
FOR THE 26 WEEKS ENDED 26 SEPTEMBER 2015
Before exceptional Exceptional
Unaudited - 26 weeks
ended items items Total
26 September 2015 Note GBPm GBPm GBPm
Revenue 2 177.7 - 177.7
Operating costs 3 (153.2) (1.6) (154.8)
Operating profit 24.5 (1.6) 22.9
Profit on disposal of
properties 3 - 1.6 1.6
Finance costs 3,4 (2.9) (0.4) (3.3)
Profit before tax 21.6 (0.4) 21.2
Taxation 3,5 (4.4) (0.1) (4.5)
Profit for the period
attributable to equity
shareholders of the Parent
Company 17.2 (0.5) 16.7
Attributable to:
Equity shareholders of
the Parent Company 17.0 (0.5) 16.5
Non-controlling interest 0.2 - 0.2
17.2 (0.5) 16.7
Before exceptional Exceptional
Unaudited - 26 weeks
ended items items Total
27 September 2014 Note GBPm GBPm GBPm
Revenue 2 161.6 - 161.6
Operating costs 3 (138.9) (1.7) (140.6)
Operating profit 22.7 (1.7) 21.0
Profit on disposal of
properties 3 - 0.8 0.8
Finance costs 3,4 (3.1) (0.4) (3.5)
Profit before tax 19.6 (1.3) 18.3
Taxation 3,5 (4.2) - (4.2)
Profit for the period
attributable to equity
shareholders of the Parent
Company 15.4 (1.3) 14.1
Attributable to:
Equity shareholders of
the Parent Company 15.4 (1.3) 14.1
(MORE TO FOLLOW) Dow Jones Newswires
November 20, 2015 02:00 ET (07:00 GMT)
Non-controlling interest - - -
15.4 (1.3) 14.1
Before exceptional Exceptional
Audited - 52 weeks ended items items Total
28 March 2015 Note GBPm GBPm GBPm
Revenue 2 321.5 - 321.5
Operating costs 3 (279.2) (1.5) (280.7)
Operating profit 42.3 (1.5) 40.8
Profit on disposal of
properties 3 - 0.8 0.8
Pension fund curtailment
gain - 1.2 1.2
Finance costs 3,4 (5.9) (0.8) (6.7)
Profit before tax 36.4 (0.3) 36.1
Taxation 3,5 (7.9) 0.1 (7.8)
Profit for the year 28.5 (0.2) 28.3
Attributable to:
Equity shareholders of
the Parent Company 28.6 (0.2) 28.4
Non-controlling interests (0.1) - (0.1)
28.5 (0.2) 28.3
EARNINGS PER SHARE
Unaudited Unaudited Audited
26 weeks 26 weeks 52 weeks
ended ended ended
26 September 27 September 28 March
2015 2014 2015
Pence Pence Pence
Per 40p 'A' and 'C' ordinary
share
Basic 6 29.84 25.33 51.15
Diluted 6 29.45 24.98 50.42
Adjusted 6 30.74 27.67 51.51
Diluted adjusted 6 30.35 27.29 50.78
Per 4p 'B' ordinary share
Basic 6 2.98 2.53 5.12
Diluted 6 2.95 2.50 5.04
Adjusted 6 3.07 2.77 5.15
Diluted adjusted 6 3.03 2.73 5.08
FULLER, SMITH & TURNER P.L.C.
CONDENSED GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE 26 WEEKS ENDED 26 SEPTEMBER 2015
Unaudited Unaudited Audited
26 weeks 26 weeks 52 weeks
ended ended ended
26 September 27 September 28 March
2015 2014 2015
Note GBPm GBPm GBPm
Profit for the period 16.7 14.1 28.3
Items that may be reclassified
to profit or loss:
Net gains/(losses) on
valuation of financial
assets and liabilities 0.5 (0.5) (3.0)
Tax related to items
that may be reclassified
to profit or loss 5 (0.1) 0.1 0.6
Items that will not be
reclassified to profit
or loss:
Net actuarial (losses)
on pension scheme 10 (0.1) (2.9) (8.3)
Tax related to items
that will not be reclassified
to profit or loss 5 - 0.6 1.7
Other comprehensive income/(loss)
for the period, net of
tax 0.3 (2.7) (9.0)
Total comprehensive income
for the period, net of
tax, attributable to
equity shareholders of
the Parent Company 17.0 11.4 19.3
Total comprehensive income
attributable to:
Equity shareholders of
the Parent Company 16.8 11.4 19.4
Non-controlling interest 0.2 - (0.1)
17.0 11.4 19.3
FULLER, SMITH & TURNER P.L.C.
CONDENSED GROUP BALANCE SHEET
26 SEPTEMBER 2015
Unaudited Unaudited Audited
At At At
26 September 27 September 28 March
2015 2014 2015
Note GBPm GBPm GBPm
Non-current assets
Intangible assets 38.3 37.6 38.7
Property, plant and equipment 8 515.2 460.7 471.9
Investment properties 4.6 4.6 4.6
Derivative financial
assets 0.2 0.2 0.3
Other non-current assets 0.2 0.4 0.3
Deferred tax assets 8.8 7.1 8.4
Total non-current assets 567.3 510.6 524.2
Current assets
Inventories 11.1 10.9 10.6
Trade and other receivables 18.5 19.5 17.7
Cash and short term deposits 9 7.1 6.2 5.1
Total current assets 36.7 36.6 33.4
Current liabilities
Trade and other payables 54.5 53.5 49.2
Current tax payable 5.1 4.7 3.9
Provisions 0.3 0.3 0.4
Borrowings 9 20.0 - 20.0
Total current liabilities 79.9 58.5 73.5
Non-current liabilities
Borrowings 9 178.3 162.1 147.7
Derivative financial
liabilities 6.8 3.8 6.1
Retirement benefit obligations 10 24.2 20.2 24.4
Deferred tax liabilities 20.9 21.9 21.3
Provisions 2.2 2.6 2.5
Other non-current payables 0.3 0.4 0.4
Total non-current liabilities 232.7 211.0 202.4
Net assets 291.4 277.7 281.7
Capital and reserves
Share capital 22.8 22.8 22.8
Share premium account 4.8 4.8 4.8
Capital redemption reserve 3.1 3.1 3.1
Own shares (14.8) (12.5) (13.5)
Hedging reserve (2.0) (0.4) (2.4)
Retained earnings 280.4 262.8 270.0
Equity attributable to
the owners of the Company 294.3 280.6 284.8
Non-controlling interest (2.9) (2.9) (3.1)
Total equity 291.4 277.7 281.7
FULLER, SMITH & TURNER P.L.C.
CONDENSED GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE 26 WEEKS ENDED 26 SEPTEMBER 2015
Share Capital Non-
Share premium redemption Own Hedging Retained Total controlling Total
capital account reserve shares reserve earnings Interest equity
GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
Unaudited - 26 weeks
ended 26 September 2015
At 28 March 2015 22.8 4.8 3.1 (13.5) (2.4) 270.0 284.8 (3.1) 281.7
Profit for the period - - - - - 16.5 16.5 0.2 16.7
Other comprehensive loss for
the period - - - - 0.4 (0.1) 0.3 - 0.3
Total comprehensive income
for the period - - - - 0.4 16.4 16.8 0.2 17.0
Shares purchased to be held
in ESOT or as treasury - - - (4.3) - - (4.3) - (4.3)
Shares released from ESOT
and treasury - - - 3.0 - (2.4) 0.6 - 0.6
Dividends (note 7) - - - - - (5.6) (5.6) - (5.6)
Share-based payment charges - - - - - 1.7 1.7 - 1.7
Tax credited directly to
equity
(note 5) - - - - - 0.3 0.3 - 0.3
Adjustment arising from change - -
in non-controlling interest - - - - - - -
At 26 September 2015 22.8 4.8 3.1 (14.8) (2.0) 280.4 294.3 (2.9) 291.4
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Unaudited - 26 weeks
ended 27 September 2014
At 29 March 2014 22.8 4.8 3.1 (9.7) - 256.2 277.2 - 277.2
Profit for the period - - - - - 14.1 14.1 - 14.1
Other comprehensive loss for
the period - - - - (0.4) (2.3) (2.7) - (2.7)
Total comprehensive
(loss)/income
for the period - - - - (0.4) 11.8 11.4 - 11.4
Shares purchased to be held
in ESOT or as treasury - - - (5.1) - - (5.1) - (5.1)
Shares released from ESOT
and treasury - - - 2.3 - (1.6) 0.7 - 0.7
Dividends (note 7) - - - - - (5.2) (5.2) - (5.2)
Share-based payment charges - - - - - 1.3 1.3 - 1.3
Tax credited directly to
equity
(note 5) - - - - - 0.3 0.3 - 0.3
Adjustment arising from change
in non-controlling interest - - - - - - - (2.9) (2.9)
At 27 September 2014 22.8 4.8 3.1 (12.5) (0.4) 262.8 280.6 (2.9) 277.7
Share Capital Non-
Share premium redemption Own Hedging Retained Total controlling Total
capital account reserve shares reserve earnings Interest equity
GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
Audited - 52 weeks
ended 28 March 2015
At 29 March 2014 22.8 4.8 3.1 (9.7) - 256.2 277.2 - 277.2
Profit for the period 28.4 28.4 (0.1) 28.3
Other comprehensive loss for
the period - - - - (2.4) (6.6) (9.0) - (9.0)
Total comprehensive (loss)/income
for the period - - - - (2.4) 21.8 19.4 (0.1) 19.3
Shares purchased to be held
in ESOT or as treasury - - - (7.1) - - (7.1) - (7.1)
Shares released from ESOT
and treasury - - - 3.3 - (2.3) 1.0 - 1.0
Dividends (note 7) - - - - - (8.7) (8.7) - (8.7)
Share-based payment charges - - - - - 2.6 2.6 - 2.6
Tax credited directly to equity
(note 5) - - - - - 0.4 0.4 - 0.4
Adjustment arising from change
in non-controlling interest - - - - - - - (3.0) (3.0)
At 28 March 2015 22.8 4.8 3.1 (13.5) (2.4) 270.0 284.8 (3.1) 281.7
FULLER, SMITH & TURNER P.L.C.
CONDENSED GROUP CASH FLOW STATEMENT
FOR THE 26 WEEKS ENDED 26 SEPTEMBER 2015
Unaudited Unaudited Audited
26 weeks 26 weeks 52 weeks
ended ended ended
26 September 27 September 28 March
2015 2014 2015
Note GBPm GBPm GBPm
Group profit before tax 21.2 18.3 36.1
Net finance costs before
exceptional items 2.9 3.1 5.9
Exceptional items 3 0.4 1.3 0.3
Depreciation and amortisation 8.8 8.0 16.4
Gain on disposal of property, - - -
plant and equipment
33.3 30.7 58.7
Difference between pension
charge and
cash paid (0.6) (0.3) (0.7)
Share-based payment charges 1.7 1.3 2.6
Change in trade and other
receivables (0.7) (1.6) (0.6)
Change in inventories (0.5) (0.2) -
Change in trade and other
payables 4.7 5.0 1.7
Cash impact of operating
exceptional items 3 (0.5) (1.9) (1.7)
Cash generated from operations 37.4 33.0 60.0
Tax paid (4.0) (3.8) (8.3)
Cash generated from operating
activities 33.4 29.2 51.7
Cash flow from investing
activities
Business combinations (6.2) (20.6) (25.2)
Purchase of property, plant
and equipment (46.7) (13.8) (31.1)
Overdraft acquired on acquisition - (0.1) (0.1)
Sale of property, plant
and equipment 3.0 2.4 3.3
Net cash outflow from investing
activities (49.9) (32.1) (53.1)
Cash flow from financing
activities
Purchase of own shares (4.3) (5.1) (7.1)
Receipts on release of
own shares to option schemes 0.6 0.7 1.0
Interest paid (2.6) (2.7) (5.2)
Preference dividends paid 7 (0.1) (0.1) (0.1)
Equity dividends paid 7 (5.6) (5.2) (8.7)
Drawdown of bank loans 30.5 19.0 24.5
Repayment of other loans - (0.5) (0.5)
Cost of refinancing - (1.1) (1.1)
Cost of new derivative
instruments - - (0.4)
Net cash inflow from financing
activities 18.5 5.0 2.4
Net movement in cash and
cash equivalents 9 2.0 2.1 1.0
Cash and cash equivalents
at the start of the period 5.1 4.1 4.1
Cash and cash equivalents
at the end of the period 9 7.1 6.2 5.1
FULLER, SMITH & TURNER P.L.C.
NOTES TO THE CONDENSED FINANCIAL STATEMENTS
1. HALF YEAR REPORT
Basis of preparation
These half year financial statements for the 26 weeks ended 26
September 2015, which are abridged and unaudited, have been
reviewed by the auditor and prepared in accordance with the
Disclosure and Transparency Rules (DTRs) of the Financial Conduct
Authority and International Accounting Standard (IAS) 34, Interim
Financial Reporting, as adopted by the European Union.
The half year financial statements were approved by the
Directors on 19 November 2015.
This half year statement does not constitute full accounts as
defined by Section 434 of the Companies Act 2006. The figures for
the 52 weeks ended 28 March 2015 are derived from the published
statutory accounts. Full accounts for the 52 weeks ended 28 March
2015, including an unqualified auditor's report which did not make
any statement under Section 498 of the Companies Act 2006, have
been delivered to the Registrar of Companies.
On the basis of the strong cash flows generated by the business
and the significant headroom available on the bank facilities the
Directors are confident that the Group has adequate resources to
continue in operational existence for the foreseeable future and,
accordingly, consider that it is appropriate to continue to adopt
the going concern basis of accounting in preparing the financial
statements.
Adoption of New Standards and Interpretations
The accounting policies adopted are consistent with those
applied in the 52 weeks ended 28 March 2015, which were published
as part of the accounts for that year and which are available from
the Group's website, www.fullers.co.uk.
IAS 19 (November 2013) Defined Benefit Plans: Employee
Contributions was issued in the period but will not have a
significant impact on the accounting policies, financial position
or performance of the Group.
Revision to transfer prices and central cost allocation
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The Group's policy is to set transfer prices between segments at
an arm's length basis, similar to transactions with third parties.
In line with best practice, the transfer price is regularly
reviewed and revised as required. The latest revision to the
transfer price was applied at the beginning of this year. In
addition, the allocation basis of costs related to shared services
was revised. To aid comparability with the current results, we have
included additional disclosures to present the comparative
segmental information based on the revised basis. This revised
information is included in Note 2 to these statements.
2. SEGMENTAL ANALYSIS
Unaudited - 26 weeks Managed The Fuller's
ended 26 September Pubs and Tenanted Beer
2015 Hotels Inns Company Unallocated(1) Total
GBPm GBPm GBPm GBPm GBPm
Revenue:
Segment revenue 121.9 16.1 63.0 - 201.0
Inter-segment sales - - (23.3) - (23.3)
Revenue from third
parties 121.9 16.1 39.7 - 177.7
Segment result 17.0 6.7 3.6 (2.8) 24.5
Operating exceptional
items (1.6)
Operating profit 22.9
Profit on disposal
of properties 1.6
Net finance costs (3.3)
Profit before tax 21.2
Revision to transfer prices and central cost allocation
As set out in Note 1, the Group changed the transfer price and
shared cost allocations applied between the segments. To aid
comparability to the current period, the table below sets out the
revised segmental information for the 52 weeks ended 27 September
2014 based on the new transfer price.
Unaudited - 26
weeks Managed
ended 27 September Pubs Tenanted The Fuller's
2014 (revised) and Hotels Inns Beer Company Unallocated(1) Total
GBPm GBPm GBPm GBPm GBPm
Revenue:
Segment revenue 106.4 16 61.3 - 183.7
Inter-segment sales - - (22.1) - (22.1)
Revenue from third
parties 106.4 16 39.2 - 161.6
Segment result 14.9 6.7 3.6 (2.5) 22.7
Operating exceptional
items (1.7)
Operating profit 21
Profit on disposal
of properties 0.8
Net finance costs (3.5)
Profit before tax 18.3
Unaudited - 26 weeks Managed The Fuller's
ended 27 September Pubs and Tenanted Beer
2014 Hotels Inns Company Unallocated(1) Total
GBPm GBPm GBPm GBPm GBPm
Revenue:
Segment revenue 106.4 16.0 62.4 - 184.8
Inter-segment sales - - (23.2) - (23.2)
Revenue from third
parties 106.4 16.0 39.2 - 161.6
Segment result 14.3 6.3 4.1 (2.0) 22.7
Operating exceptional
items (1.7)
Operating profit 21.0
Profit on disposal
of properties 0.8
Net finance costs (3.5)
Profit before tax 18.3
Audited - 52 weeks Managed The Fuller's
ended Pubs and Tenanted Beer
28 March 2015 Hotels Inns Company Unallocated(1) Total
GBPm GBPm GBPm GBPm GBPm
Revenue:
Segment revenue 213.8 31.4 122.9 - 368.1
Inter-segment sales - - (46.6) - (46.6)
Revenue from third
parties 213.8 31.4 76.3 - 321.5
Segment result 25.0 12.6 8.7 (4.0) 42.3
Operating exceptional
items (1.5)
Operating profit 40.8
Profit on disposal
of properties 0.8
Pension fund curtailment
gain 1.2
Net finance costs (6.7)
Profit before tax 36.1
(1) Unallocated expenses represent primarily the salary and
costs of central management.
3. EXCEPTIONAL ITEMS
Unaudited Unaudited Audited
26 weeks 26 weeks 52 weeks
ended ended ended
26 September 27 September 28 March
2015 2014 2015
GBPm GBPm GBPm
Amounts included in operating
profit:
Acquisition costs (0.5) (1.0) (1.2)
Impairment of properties - (0.5) (0.7)
Reversal of impairment on
property - - 0.7
Onerous lease provision
release/(charge) 0.2 (0.2) (0.3)
Deemed remuneration on future
purchase of shares in The
Stable (1.3) - -
Total exceptional items
included in
operating profit (1.6) (1.7) (1.5)
Profit on disposal of properties 1.6 0.8 0.8
Pension fund curtailment
gain - - 1.2
Exceptional finance costs:
Finance charge on net pension
liabilities (note 10) (0.4) (0.4) (0.8)
Total exceptional finance
costs (0.4) (0.4) (0.8)
Total exceptional items
before tax (0.4) (1.3) (0.3)
Exceptional tax:
Profit on disposal of properties (0.3) 0.1 (0.2)
Pension fund curtailment
gain - - (0.2)
Other items 0.2 (0.1) 0.5
Total exceptional tax (0.1) - 0.1
Total exceptional items (0.5) (1.3) (0.2)
Acquisition costs of GBP0.5 million during the 26 weeks ended 26
September 2015 (27 September 2014: GBP1.0 million, 28 March 2015:
GBP1.2 million) relate to transaction costs on pub and business
acquisitions.
Deemed remuneration on the future purchase of shares in The
Stable relates to the increase in estimated value of minority share
of The Stable group of companies. The current estimate of the
amount payable in respect of the remaining 49% of shares is GBP6.3
million (2014: GBP3.0m) of which GBP4.3m (27 September 2014: GBP3.0
million) is accrued at the balance sheet date, with the balance to
be accrued over the remaining period to 28 March 2018.
There was no property impairment charge during the period (27
September 2014: GBP0.5 million, 28 March 2015: GBP0.7 million). In
previous periods, this has represented a write down of licensed
properties to their recoverable value. The reversal of impairment
credit of GBP0.7 million during the 52 weeks ended 28 March 2015
relates to the write back of previously impaired licensed
properties to their recoverable value.
The onerous lease provision release of GBP0.2 million during the
26 weeks ended 26 September 2015 (26 weeks ended 27 September 2014:
charge of GBP0.2 million, 28 March 2015: charge of GBP0.3 million)
relates to the reversal of provisions made in respect of leasehold
properties which are trading at a loss and which the Directors do
not expect to become profitable in the future.
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The cash impact of operating exceptional items before tax for
the 26 weeks ended 26 September 2015 was GBP0.5 million cash
outflow (27 September 2014: GBP1.9 million cash outflow, 28 March
2015: GBP1.7 million cash outflow).
4. FINANCE COSTS
Unaudited Unaudited Audited
26 weeks 26 weeks 52 weeks
ended ended ended
26 September 27 September 28 March
2015 2014 2015
GBPm GBPm GBPm
Interest expense arising
on:
Financial liabilities at
amortised cost - loans and
debentures 2.7 2.9 5.6
Financial liabilities at
amortised cost - preference
shares 0.1 0.1 0.1
Total interest expense for
financial liabilities 2.8 3.0 5.7
Unwinding of discounts on
provisions 0.1 0.1 0.2
Finance costs before exceptional
items 2.9 3.1 5.9
Finance charge on net pension
liabilities (note 3) 0.4 0.4 0.8
3.3 3.5 6.7
5. TAXATION
Unaudited Unaudited Audited
26 weeks 26 weeks 52 weeks
ended ended ended
26 September 27 September 28 March
2015 2014 2015
GBPm GBPm GBPm
Tax on profit on ordinary
activities
Current income tax:
Corporation tax 5.1 4.6 8.6
Amounts overprovided in
previous years - - -
Total current income tax 5.1 4.6 8.6
Deferred tax:
Origination and reversal
of temporary differences (0.6) (0.4) (0.8)
Total deferred tax (0.6) (0.4) (0.8)
Total tax charged in the
Income Statement 4.5 4.2 7.8
Tax relating to items charged/credited
to Statement of Comprehensive
Income
Deferred tax:
Net (losses)/gains on valuation
of financial assets and
liabilities (0.1) (0.1) 0.6
Net actuarial (losses)/gains
on pension scheme - (0.6) 1.7
Tax (credit)/charge included
in the Statement of Comprehensive
Income (0.1) (0.7) 2.3
Tax relating to items charged/credited
directly to equity
Deferred tax:
Reduction in deferred tax
liability due to indexation (0.2) (0.2) (0.3)
Share-based payments - - 0.1
Current tax:
Share-based payments (0.1) (0.1) (0.2)
Tax credit included in the
Statement of Changes in
Equity (0.3) (0.3) (0.4)
The taxation charge is calculated by applying the Directors'
best estimate of the annual effective tax rate to the profit for
the period.
The Finance Act 2013 was enacted during the 52 weeks to 29 March
2014 and reduced the rate of UK corporation tax from 23% to 21% on
1 April 2014 and from 21% to 20% on 1 April 2015.
6. EARNINGS PER SHARE
Unaudited Unaudited Audited
26 weeks 26 weeks 52 weeks
ended ended ended
26 September 27 September 28 March
2015 2014 2015
GBPm GBPm GBPm
Profit attributable to equity
shareholders 16.5 14.1 28.4
Exceptional items net of
tax 0.5 1.3 0.2
Adjusted earnings attributable
to equity shareholders 17.0 15.4 28.6
Number Number Number
Weighted average share capital 55,296,000 55,664,000 55,521,000
Dilutive outstanding options
and share awards 722,000 771,000 804,000
Diluted weighted average
share capital 56,018,000 56,435,000 56,325,000
40p 'A' and 'C' ordinary
share Pence Pence Pence
Basic earnings per share 29.84 25.33 51.15
Diluted earnings per share 29.45 24.98 50.42
Adjusted earnings per share 30.74 27.67 51.51
Diluted adjusted earnings
per share 30.35 27.29 50.78
4p 'B' ordinary share
Basic earnings per share 2.98 2.53 5.12
Diluted earnings per share 2.95 2.50 5.04
Adjusted earnings per share 3.07 2.77 5.15
Diluted adjusted earnings
per share 3.03 2.73 5.08
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 1,687,868 (27
September 2014: 1,320,409 and 28 March 2015: 1,463,761).
Diluted earnings per share 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
period 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 exceptional items and on the same weighted average
ordinary share capital as for the basic and diluted earnings per
share. An adjusted earnings per share measure has been included as
the Directors consider that this measure better reflects the
underlying earnings of the Group.
7. DIVIDENDS
Unaudited Unaudited Audited
26 weeks 26 weeks 52 weeks
ended ended ended
26 September 27 September 28 March
2015 2014 2015
GBPm GBPm GBPm
Declared and paid during
the period
Final dividend paid in the
period 5.6 5.2 5.2
Interim dividend paid in
the period - - 3.5
Equity dividends paid 5.6 5.2 8.7
Dividends on cumulative
preference
shares (note 4) 0.1 0.1 0.1
Dividends per 40p 'A' and Pence Pence Pence
'C' ordinary share declared
in respect of the period
Interim 6.90 6.40 6.40
Final - - 10.20
6.90 6.40 16.60
The pence figures are for the 40p 'A' and '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.
The directors have declared an interim dividend of 6.9p (2014:
6.40p) for the 40p 'A' and 'C' ordinary shares, and 0.690p (2014:
0.640p) for the 4p 'B' ordinary shares, with a total estimated cost
to the Company of GBP3.8 million (2014: GBP3.5 million).
8. PROPERTY, PLANT AND EQUIPMENT
Unaudited Unaudited Audited
26 weeks 26 weeks 52 weeks
ended ended ended
26 September 27 September 28 March
2015 2014 2015
GBPm GBPm GBPm
Net book value at start
of period 471.9 434.8 434.8
Additions 47.2 16.3 32.5
Business combinations 6.2 18.7 21.5
Disposals (1.3) (1.0) (1.4)
Impairment loss net of reversals - (0.5) -
Depreciation provided during
the period (8.8) (7.6) (15.5)
Net book value at end of
period 515.2 460.7 471.9
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During the 26 weeks ended 26 September 2015, the Group
recognised a charge of GBPnil (27 September 2014: GBP0.5 million,
28 March 2015: GBP0.7 million) in respect of the write down of
licenced properties purchased in recent years where their asset
values exceeded either fair value less costs to sell or their value
in use.
9. ANALYSIS OF NET DEBT
At At
Unaudited - 26 weeks 28 March 26 September
ended 26 September
2015 2015 Cash flows Non cash(1) 2015
GBPm GBPm GBPm GBPm
Cash and cash equivalents:
Cash and short term
deposits 5.1 2.0 - 7.1
5.1 2.0 - 7.1
Debt:
Bank loans (140.0) (30.5) (0.1) (170.6)
Other loans (0.2) - - (0.2)
Debenture stock (25.9) - - (25.9)
Preference shares (1.6) - - (1.6)
(167.7) (30.5) (0.1) (198.3)
Net debt (162.6) (28.5) (0.1) (191.2)
(1) Non-cash movements relate to the amortisation of arrangement
fees, arrangement fees accrued and corporate acquisitions.
At At
Unaudited - 26 weeks 29 March 27 September
ended 27 September
2014 2014 Cash flows Non cash(1) 2014
GBPm GBPm GBPm GBPm
Cash and cash equivalents:
Cash and short term
deposits 4.1 2.1 - 6.2
4.1 2.1 - 6.2
Debt:
Bank loans (116.2) (17.9) (0.3) (134.4)
Other loans (0.2) 0.5 (0.5) (0.2)
Debenture stock (25.9) - - (25.9)
Preference shares (1.6) - - (1.6)
(143.9) (17.4) (0.8) (162.1)
Net debt (139.8) (15.3) (0.8) (155.9)
At At
Audited - 52 weeks 29 March 28 March
ended 28 March 2015 2014 Cash flows Non cash(1) 2015
GBPm GBPm GBPm GBPm
Cash and cash equivalents:
Cash and short term
deposits 4.1 1.0 - 5.1
4.1 1.0 - 5.1
Debt:
Bank loans (116.2) (23.4) (0.4) (140.0)
Other loans (0.2) 0.5 (0.5) (0.2)
Debenture stock (25.9) - - (25.9)
Preference shares (1.6) - - (1.6)
(143.9) (22.9) (0.9) (167.7)
Net debt (139.8) (21.9) (0.9) (162.6)
(1) Non-cash movements relate to the amortisation of arrangement
fees, arrangement fees accrued and corporate acquisitions.
10. RETIREMENT BENEFIT OBLIGATIONS
Unaudited Unaudited Audited
At At At
26 September 27 September 28 March
2015 2014 2015
The amount included in
the Balance Sheet
arising from the Group's
obligations in GBPm GBPm GBPm
respect of its defined
benefit retirement plan
Fair value of scheme assets 94.5 96.1 103.5
Present value of scheme
liabilities (118.7) (116.3) (127.9)
Deficit in the scheme (24.2) (20.2) (24.4)
Key financial assumptions
used in the valuation
of the scheme
Rate of increase in salaries n/a 2.65% n/a
Rate of increase in pensions
in payment 3.15% 3.15% 3.00%
Discount rate 3.75% 4.00% 3.25%
Inflation assumption -
RPI 3.15% 3.15% 3.00%
Inflation assumption -
CPI 2.15% 2.15% 2.00%
Mortality assumptions
The mortality assumptions used in the valuation of the Plan as
at 26 September 2015 are as set out in the financial statements for
the 52 weeks ended 28 March 2015.
Unaudited Unaudited Audited
At At At
26 September 27 September 28 March
2015 2014 2015
GBPm GBPm GBPm
Assets in the scheme
Corporate bonds 19.1 18.8 20.7
Equities 45.5 46.2 50.2
Property 0.9 0.8 0.9
Absolute return fund 26.9 28.4 29.5
Cash 0.9 0.7 0.9
Annuities 1.2 1.2 1.3
Total market value of assets 94.5 96.1 103.5
Unaudited Unaudited Audited
26 weeks ended 26 weeks ended 52 weeks ended
26 September 27 September 28 March
2015 2014 2015
GBPm GBPm GBPm
Movement in deficit during period
Deficit in scheme at beginning of the
period (24.4) (17.2) (17.2)
Movement in period:
Current service cost - (0.7) (1.1)
Curtailment gain - - 1.2
Net interest cost (0.4) (0.4) (0.8)
Net actuarial losses (0.1) (2.9) (8.3)
Contributions 0.7 1.0 1.8
Deficit in scheme at end of the period (24.2) (20.2) (24.4)
On 1 January 2015 the scheme was closed to future accruals,
resulting in a curtailment gain of GBP1.2million in the 52 weeks to
28 March 2015.
11. PRINCIPAL RISKS AND UNCERTAINTIES
There has been no change since 28 March 2015 to the risks and
uncertainties which may affect the Company's performance in the
next six months, details of which are set out in the financial
statements for the 52 weeks ended 28 March 2015, and are available
on the Fuller's website, www.fullers.co.uk. The Group continually
assesses its risks and the Directors have identified those that
could significantly impact the Group's objectives.
Health, safety and well-being of employees and customers remains
top of the Group's strategic priorities. Managing a large portfolio
of houses and sites increases the complexities of ensuring the
highest health and safety standards are adhered to. The Group's
headquarters and sole brewing facility are located at the Griffin
Brewery, therefore safety at this site is key. Any disaster at
would seriously disrupt profitability.
Fuller's has a wide portfolio of brands and has established a
reputation for offering premium products. There is a risk that
contamination of our products at source or outlet could damage
reputation of the brand and impact customers' perceptions of
Fuller's as a premium position company. This positioning is key to
the success of the business and any change to this would
significantly impact the Group's performance.
The success and future of the Group is determined by its key
management and staff who adhere to a strong set of values. Should
key management leave the Group, or employees fail to uphold
Fuller's key principles, this could jeopardise delivery of the
Group's strategy.
Fuller's operates in a highly regulated sector and changes in
government policy could result in a decline in trade, the main
areas of consideration being legislation surrounding the sale of
alcohol and the Beer Tie.
The Group is increasingly reliant on its information systems.
Any prolonged failure of these would result in disruption to
operations. Data protection is also vital, as any loss of data
could result in reputational damage to the Group.
12. SHAREHOLDERS' INFORMATION
Shareholders holding 40p 'C' ordinary shares are reminded that
they have 30 days from 20 November 2015 should they wish to convert
those 'C' shares to 'A' shares. The next available opportunity
after that will be June 2016. For further details please contact
the Company's registrars, Computershare on 0870 899 4096.
13. HALF YEAR REPORT
Copies of the half year report are being sent to shareholders
and will be available from the Company's registered office: Griffin
Brewery, Chiswick, London, W4 2QB and the Company's website
www.fullers.co.uk.
14. STATEMENT OF DIRECTORS' RESPONSIBILITIES
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