Fuller, Smith & Turner (FSTA) H2 2025 earnings summary

Executive summary

• Revenue increased 4.8% to £376.3m, with adjusted profit before tax up 32% to £27.0m and adjusted EPS up 40% to 34.22p, reflecting strong financial performance and effective capital allocation.

• Returned £34.6m to shareholders via dividends and buybacks, a 54% year-over-year increase, including a buyback of 6.5m 'A' shares and a further 1m share buyback.

• Completed major estate enhancements, including the acquisition of Lovely Pubs (seven sites) for £22.5m, The White Swan, and the sale of non-core assets.

• Secured a new £185m bank facility at a lower margin, providing financial headroom for future investment.

• Board changes: Michael Turner retiring, Simon Emeny to become Executive Chairman in July 2025.

Financial highlights

• Like-for-like sales in Managed Pubs and Hotels grew 5.2%, outperforming the market by 2.5ppt.

• Operating margin improved from 9.6% to 10.7% despite inflationary pressures.

• Statutory profit after tax rose to £27.2m from £9.1m year-over-year; statutory profit before tax was £33.8m, up from £14.4m, driven by property disposals.

• Dividend per share increased 11% to 19.76p.

• Adjusted EBITDA increased to £67.6m (post-IFRS16).

Outlook and guidance

• Like-for-like sales in the first 10 weeks of FY2026 rose by 4.2%, indicating continued trading momentum.

• Planned capital investment of £25m–£30m and depreciation around £28m for FY2026.

• Adjusted effective interest charge expected to be £12m, with a tax rate of 27%.

• Focus on property investment, people development, and enhancing the customer proposition.

• Confident in delivering further sales and earnings growth despite external challenges.