Fuller All Set for Christmas, Despite Economic Challenges--CEO
18 November 2016 - 1:41PM
Dow Jones News
By Razak Musah Baba
LONDON--Despite a challenging U.K. economy, Fuller, Smith &
Turner PLC (FSTA.LN) is ready for the end-of-year festivities, the
chief executive of the pubs firm and brewer said Friday.
Speaking on a telephone interview, Simon Emeny said that
increases in business rates and the introduction of the National
Living Wage, as well as uncertainty around the Brexit vote, has
made trading tough.
The U.K government announced a new living wage of 7.20 pounds
($8.95) an hour, from GBP6.70, for people aged 21 years and over,
which took effect from April.
However, Mr. Emeny said the company is well invested to perform
well and that the falling value of the pound will make the U.K
attractive to both foreign and local tourists who will eventually
patronize pubs and hotels.
Mr. Emeny's comments come after Fuller's on Friday said its
pretax profit during the 26 weeks ended Sept. 24, rose slightly to
GBP21.4 million from GBP21.2 million in the same period a year
earlier on revenue which rose 11% to GBP197.6 million from GBP177.7
million.
The half-year performance was helped by the Managed Pubs and
Hotels unit and The Fuller's Beer Company, which more than offset
weak trading at the Tenanted Inns division. The company runs 196
tenanted pubs and has the same number of managed pubs and hotels.
The Chiswick, London-based brewer's portfolio of beers includes
London Pride, Oliver's Island and ESB.
The company is investing to boost food sales and plans to sell
around 10% of its tenanted pubs which under perform and can't be
transformed, Mr. Emeny said.
In December 2015, Fuller's acquired a 51% stake in Nectar
Imports, a wholesale drinks business. Fuller's said revenue from
its Beer Company rose by 19%, reflecting the revenue contribution
from Nectar Imports. The company plans to increase or gain total
control of Nectar Imports in the next couple of years as part of
Fuller's organic expansion strategy, Mr. Emeny said.
Fuller's shares at 1125 GMT traded down 10 pence or 1% at 980
pence, valuing the company at 541.3 million.
-Write to Razak Musah Baba at razak.baba@wsj.com; Twitter:
@Raztweet
(END) Dow Jones Newswires
November 18, 2016 07:26 ET (12:26 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
Fuller Smith & Turner (LSE:FSTA)
Historical Stock Chart
Von Jun 2024 bis Jul 2024
Fuller Smith & Turner (LSE:FSTA)
Historical Stock Chart
Von Jul 2023 bis Jul 2024