Fuller, Smith & Turner (LSE:FSTA) shares rose 10.7%, to 726p, after reporting that its adjusted profit before tax rose 28% to £34.6m for the 52 weeks to 28 March.
Revenue for the period was up 5.7% to £397.8m, like-for-like sales in Managed Pubs and Hotels were up 4.9%, and adjusted operating margin widened to 11.5% from 10.7%, allowing a total dividend for the year of 21.20p, up 7%.
"We have exciting opportunities for the coming year with plans to invest over £30 million across the estate," said Executive Chairman Simon Emeny.
Food like-for-like sales rose 3.5%, drink was up 5.8%, and accommodation increased 4.9%, with an average room rate of £127.50 across the estate.
The group invested £32.2m in the existing estate, completing 14 transformational schemes including The Wellington, Waterloo and The Parcel Yard, added two Central London freehold pubs and exchanged contracts to acquire The Swan at Arundel.
Trading momentum continued into the new financial year with like-for-like sales for the 10 weeks to 6 June up 4.4% and strong accommodation demand from staycations, particularly in the Cotswolds.
The company noted that it had also opened the Fuller's Kitchen Academy, delivered 439 chef training sessions and reported a 12% reduction in labour turnover.
Mark Crouch, market analyst at eToro, said Fuller's served up a strong full‑year performance as revenue rose 5.7% and adjusted pre‑tax profit climbed 28%, evidence that management has successfully converted higher sales into stronger margins.
He argues this resilience stems from a "quality over quantity" model, with an estate of iconic, predominantly freehold pubs and hotels that draws an affluent customer base. "The real toast-worthy achievement was the sharp improvement in profitability, with adjusted pre‑tax profit climbing 28% as management successfully converted higher sales into stronger margins," Crouch added.
Crouch notes that, at a time when many operators are finding trading increasingly difficult to navigate, Fuller's positioning appears to be keeping customers willing to spend on premium food, drinks and accommodation.
