Pubs group pours flat profit

Fuller Smith & Turner (FST) has reported flat full-year profits and again flagged rising cost pressures facing the drinks industry.

The pubs group said pretax profit in the year to 1 April came in at £39.9 million, up slightly on £39.2m in 2016.

Revenue rose 12 per cent to £392m, with the firm seeing like-for-like sales at its managed pubs and hotels up 3.7 per cent.

In the first nine weeks of the new financial year, Fuller’s said like-for-like sales were up 6.6 per cent. Total beer and cider volumes were down 2 per cent over the period.

Simon Emeny, FST’S chief executive, said it had been “another good year” for the company, with food and accommodation driving same-floorspace sales growth in the company’s managed pubs and hotels.

He added: “There are a number of headwinds that will have a significant financial impact on both Fuller’s and the industry as a whole, but we face the future in a strong position.”

Impending cost pressures include a rise in business rates, the Apprenticeship Levy, the rising National Living Wage and “recruitment pressures” due to the UK’S impending departure from the European Union.

However, Emeny said the firm remains well placed to “delight our customers, recruit and develop the best team members and reward our shareholders”.

Tenanted inns like-for-like profits were marginally down 1 per cent, while FST also acquired five new pubs during the period. In its beer range, it also launched London Pride Unfiltered.

The total annual dividend rises 5 per cent to 18.80p, up from 17.90p in the previous 12 months.