Fuller, Smith & Turner (FSTA) H2 2026 earnings summary

Executive summary

• Achieved strong, sustainable growth with 4.9% like-for-like managed sales growth, outperforming the market and delivering volume growth across the business.

• Adjusted profit before tax rose 28% year-over-year to £34.6m, with adjusted EPS up 38% to 47.18p, driven by profit improvement and share buybacks.

• Dividend per share increased by 7%, with £25.1m capital returned to shareholders, totaling £59.7m over two years.

• Maintained a resilient business model with a strong balance sheet, low debt, and a premium customer base.

Financial highlights

• Total revenue grew 6% year-over-year to £397.8m, with operating margin increasing from 10.7% to 11.5%.

• Adjusted operating profit rose to £45.9m from £40.4m, and statutory profit after tax was £21.2m.

• Managed Pubs and Hotels revenue increased 6% to £364.8m, with EBITDA margin up to 21.6%.

• Tenanted Inns EBITDA margin improved to 54.2%, with like-for-like EBITDA per pub up 4.6%.

• Net debt reduced to £140.5m, with net debt/EBITDA at 2.14x, below the 3x target.

Outlook and guidance

• Positive trading momentum continues, with like-for-like sales in Managed Pubs and Hotels up 4.4% for the first 10 weeks of FY2027.

• Plans to invest a further £30m in the estate in FY2027, including 26 new bedrooms at The Barrowboy & Banker.

• FY2027 guidance includes £30m capital investment, £11m estimated interest charge, and a 26% adjusted effective tax rate.

• Confident in navigating uncertain geopolitical and economic times, supported by balance sheet strength.