Pub chain Fuller’s warns on profits after hit from strikes

TRAIN strikes have cost Fuller’s £4m in lost sales after trips to the pub were put off and Christmas parties were cancelled.

The pub group said sales in the four weeks over Christmas and new year were 5pc below the same period in 2019, the last year undisrupted by Covid. Since the start of October, industrial action on the railway has reduced its sales by £4m, the company said. It warned that profits for the year will be below market forecasts as a result.

Simon Emeny, chief executive, said it was “frustrating that the train strikes have set back our reported sales and earnings”. Trade group Ukhospitality has estimated that the pubs and restaurant industry lost £1.5bn over December as a result of industrial action, which affected demand in the crucial Christmas period and led to many festive parties cancelled.

Mick Lynch, the RMT union general secretary, admitted ahead of the Christmas period that strike action on the railways would cause “real damage” to ordinary people.

Mr Lynch said the union did “regret the inconvenience” that the industrial action would cause, but argued that ultimately “this inconvenience is being caused by the Government”. Mr Emeny said: “While ongoing strike action will dampen sales, demand from customers remains good and we are optimistic that 2023 will deliver further sales growth through a busy calendar of events, and as office workers and tourists continue to return to the capital.”

Comparable sales at Fuller’s pubs in the 43 weeks to Jan 21 were up 20pc year on year and are now at 97pc of those seen in 2019-20.

“We are operating in a high inflation

‘While ongoing strike action will dampen sales, demand from customers remains good’

environment and that continues to impact our operating costs and margins,” Mr Emeny said.

“While some of these costs may be temporary in nature, others – such as the national living wage increase – are more permanent and we are focused on taking action to mitigate these costs wherever we can. Although strike action and the cost of living crisis create short-term hurdles to our post-pandemic recovery, we remain confident in the resilience of the pub and the future opportunity for Fuller’s.”

Fuller’s shares fell 3.8pc to 475p.