Fuller, Smith & Turner (FSTA) H1 2027 earnings summary

Executive summary

• Managed like-for-like sales rose 6.1%; revenue increased 6.5% to £220.9m and adjusted PBT rose 25% to £28.2m.

• Acquired 12 pubs for £37.5m, with acquisitions expected to be EPS-accretive in the first full financial year.

• Sales volumes increased across food and drink; summer weather and the football World Cup supported trading and margin growth.

Financial highlights

• Revenue was £220.9m versus £207.5m; adjusted EBITDA increased to £48.7m from £42.4m.

• Adjusted operating profit was £33.6m versus £28.3m, with operating margin up 1.6ppt to 15.2%.

• Adjusted PBT rose to £28.2m from £22.5m; statutory profit after tax was £21.3m versus £15.2m.

• Adjusted EPS increased to 39.81p from 30.03p; basic EPS was 40.77p versus 27.84p.

• Free cash flow to equity was £15.6m versus £17.8m.

Outlook and guidance

• Managed Pubs and Hotels like-for-like sales rose 5.8% in the 32 weeks to 7 November; Christmas bookings were 16% ahead YoY.

• FY2027 adjusted PBT is expected to exceed current market expectations.

• FY2027 guidance includes £33m planned capital investment, £32m forecast depreciation, £13m estimated interest, a 26% adjusted effective tax rate and £190m–£195m estimated net debt.

• Planned H2 estate investment is £19m, including 25 additional bedrooms at The Barrowboy & Banker.