Fuller, Smith & Turner (FSTA) H2 2024 earnings summary

Executive summary

• Achieved strong financial and operational progress in FY2024, with revenue up 7% to £359.1m, like-for-like sales up 11%, and adjusted profit before tax up 61% to £20.5m.

• Maintained a premium, predominantly freehold estate, focusing on long-term growth and customer experience.

• Dividend per share rose 21% to 17.75p, reflecting a return to a progressive dividend policy.

• Proactive asset management included transferring 23 managed pubs to tenanted, selling 37 non-core pubs, and investing over £27m in transformational schemes.

• Share buyback program continued, with over 3 million shares repurchased and up to 6.5 million targeted.

Financial highlights

• Adjusted EBITDA increased 17% to £60.8m.

• Statutory profit after tax was £9.1m, up from £7.9m; statutory profit before tax was £14.4m, up from £10.3m.

• Adjusted EPS up 52% to 24.48p; basic EPS increased to 15.16p.

• Operating margin improved to 9.6% from 7.4%.

• Net debt (excluding leases) at £133.1m; net debt/EBITDA reduced to 2.5x.

Outlook and guidance

• Expect continued sales and earnings growth in FY2025, with easing inflationary pressures.

• Like-for-like sales for the first 10 weeks of FY2025 up 4.4% against strong comparatives.

• Depreciation forecast at £28m, interest charge at £14m, and capital expenditure around £30m.

• Adjusted effective tax rate estimated at 28%.

• Ongoing investment in estate and people, with seven schemes underway or completed since year start.