Interim Results

Fuller,Smith&Turner PLC 1 December 2000 FULLER SMITH & TURNER P.L.C. INTERIM RESULTS FOR THE SIX MONTHS TO SEPTEMBER 2000 CHAIRMAN'S STATEMENT Whatever You Do, Take Pride * Operating profits up 8% * Comparable profits before tax up 5% * Comparable E.P.S. up 4% * Post-exceptional profit of £10.4m, up 47% * Own beer volumes up 5% * Interim Dividend up 8% I am pleased to report that our comparable trading profits are up 5% to £7.2m (1999: £6.9m) on a turnover up 10% to £63.0m. Comparable earnings per share are up 4% to 19.94p (1999: 19.11p). In addition Fuller's made exceptional profits of £3.2m, taking total profit before tax to £10.4m (1999: £7.1m). Our cash generation continues to be significant with EBITDA at £11.9m (1999: £ 11.4m), up 4%. Gearing fell to 5% (1999: 6.5%) following the sale in the summer of a hotel and other properties, realising a total of £10.8m. Record capital expenditure of £14.0m (1999: £9.7m), shows our commitment to the future. We shall be increasing the interim dividend by 8% to 4.38p per 'A' and 'C' £1 Ordinary Share, and 0.438p per 'B' 10p Ordinary Share, which will be paid on Friday 12th January 2001 to shareholders on the Share Register at 15th December 2000. Fuller's Inns The turnover of our combined retail operations increased by 10%, with profits at £8.0m, up 3% after an increase in repairs of £0.25m. Managed Pubs and Bars Managed pubs and bars turnover has increased by 10%, but following four successive years of comparable sales growth, like for like sales fell 1% due to the poor summer which has affected our destination food pubs in particular. The cost of complying with the ever-increasing burden of legislation has added a further £0.25m to our operating costs in the period. This represents a shift in the future cost base. Therefore we will be seeking to increase the average size of our managed pubs and looking for further opportunities to expand our managed pub business to spread the necessary fixed costs over a greater number of outlets. We have had two new openings of traditional pubs in the last six months at Barnet and Chesham, and will open a further two in the next six months. Our Bars Division had a new opening in Swindon in June and today our first late night bar 'Katabatic' opens followed by a new venue bar in Chelmsford next Friday. Our Bars Division will continue to expand subject to finding outlets that meet our site criteria and which have opportunities to trade with late licences. The Fine Line continues to progress and we are actively searching for new sites. Hotels Division In June we completed the sale of the Master Robert for a net £6.5m on which we realised a profit of £1.8m. The money raised is being reinvested into our new hotel building programmes at Kingston Bridge (opening spring 2001), Bristol (opening summer 2001), and the City of London (opening autumn 2001) - at a total cost of £23m, of which £10m has been spent to date. Like for like yield in the Hotels Division was up 7% in the period, with like for like occupancy at 81% (1999: 76%). As stated at the year end, the cost of the development programme is being borne this year in extra interest charges, with no contributions being made until 2001/02. Your Board is confident that these investments will produce a substantial return in the years ahead. Tenanted Pubs Like for like sales to the tenanted estate have grown by 4% in the first half and comparable profits by 4%. With three new acquisitions and four transfers from the managed estate, the number of tenanted pubs now stands at 108. We launched a new ten-year lease in the first half, which has been well received. We intend to roll the leases out through a large part of our tenanted estate over the next three years. The Fuller's Beer Company We continue to build value and profits in the Beer Company. Turnover was up 6%, profit up 34% and own beer barrelage up 5%. Free on-trade volumes, the largest segment in the Beer Company, were up 5% to 51,000 barrels representing 61% of our own beer business. Putting this into context nationally, UK on-trade ale volume was down 7% while our on-trade volume was up 3%. Level volumes of ale sales in the UK off-trade contrasted with Fuller's off-trade sales up 30%. Our 'London Pride' advertising campaign and promotional activities have been maintained throughout the first half and our flagship brand continues to prosper in an increasingly tough environment. Fuller's 'London Pride' and 'ESB' brands are both in the highly competitive top ten supermarket premium bottled ale sector. Organic Honey Dew, launched last March, is acquiring a reputation for a high quality organic product. It has already picked up several industry awards and is quickly becoming one of the best-selling ales in the organic sector. Prospects As already mentioned, the first six months' profits were affected by a poor summer and ever-increasing legislative costs. The start of the second half of the financial year has seen the worse autumn rains since records commenced. This has had a disruptive effect on our business. The brewing and retail pub industries have seen more changes in the last six months than at any time in their history. With the withdrawal of Bass and Whitbread from brewing, the control over national beer brands has changed dramatically and there are currently over 5,000 pubs being sold by former pub retail giants. Clearly the Board is disappointed with the performance of the company's share price, which in its opinion, in common with others in the sector, fails to reflect the value of the company and its prospects. Fuller's has an excellent and well invested asset base (with net assets per share at £5.96), enviable brands, a determined and experienced operational team together with strong cash-flow allied to a balance sheet which is largely un-geared. The Board is committed to driving the value of the business both organically and, at the right price, through the acquisition of complementary businesses. Fuller's has sufficient capacity both financially and operationally to take advantage of the opportunities presented by the unprecedented changes in our industry. Fuller's is financially stronger than at any time in its history and we are confident about the future growth prospects for the group. A.G.F. Fuller CBE Chairman For further information please Michael Turner, Managing Director contact: Paul Clarke, Finance Director Tel: 020 8996 2000 Press Office: Tel: 020 8996 2175/2198/2048 Website: www.fullers.co.uk Note to Editors: Photographs for the media are available at NewsCast Online - www.newscast.co.uk Tel: 020 7608 1000 DOI: 1st December 2000 FULLER SMITH & TURNER P.L.C. FINANCIAL HIGHLIGHTS FOR THE 26 WEEKS ENDED 23 SEPTEMBER 2000 26 weeks 26 weeks 52 weeks to to to 23 25 Increase 25 March September September 2000 1999 2000/ 2000 1999 £000 £000 £000 Continuing activities Turnover 63,005 57,530 9.5% 118,416 Operating profit before 7,868 7,289 7.9% 15,674 exceptional items Comparable trading profits* 7,228 6,902 4.7% 14,803 EBITDA** 11,931 11,448 4.2% 24,494 Profit before tax 10,370 7,067 46.7% 13,692 Comparable earnings per share* 19.94p 19.11p 4.3% 40.73p Basic earnings per share* 32.47p 19.77p 64.2% 37.62p Dividend per share* 4.38p 4.05p 8.1% 13.41p Assets per share* £5.96 £5.63 5.9% £5.69 Gearing ratio 5.0% 6.5% N/A 9.5% * Calculated on a £1 'A' Ordinary Share, comparable earnings exclude all exceptional profits, FRS11 impairment of fixed assets and FRS12 provision for onerous leases (but does include FRS15 additional depreciation). ** Earnings before interest, tax, depreciation and amortisation. FULLER SMITH & TURNER P.L.C. UNAUDITED GROUP PROFIT AND LOSS ACCOUNT FOR THE 26 WEEKS ENDED 23 SEPTEMBER 2000 26 weeks to 26 weeks to 52 weeks to 23 September 25 September 25 March 2000 1999 2000 £000 £000 £000 TURNOVER Continuing operations 63,005 57,530 118,416 Discontinued operation - 13,918 23,940 63,005 71,448 142,356 Operating costs (55,137) (63,998) (128,835) OPERATING PROFIT Continuing operations Before operating exceptional 7,868 7,289 15,674 costs Operating exceptional costs - - (2,655) Total continuing operations 7,868 7,289 13,019 Discontinued operation - 161 502 TOTAL OPERATING PROFIT 7,868 7,450 13,521 Non-operating exceptional profits Continuing operations 3,142 165 370 Discontinued operation - - 1,174 3,142 165 1,544 Interest payable (net) (640) (548) (1,373) PROFIT ON ORDINARY ACTIVITIES BEFORE TAXATION 10,370 13,692 7,067 Taxation (2,169) (2,070) (4,166) PROFIT ON ORDINARY ACTIVITIES AFTER TAXATION 8,201 4,997 9,526 Preference dividends (60) (60) (120) ATTRIBUTABLE TO EQUITY SHAREHOLDERS 8,141 4,937 9,406 Ordinary dividends (1,099) (1,016) (3,364) RETAINED PROFIT FOR THE FINANCIAL PERIOD 7,042 3,921 6,042 EARNINGS PER SHARE* Basic 32.47p 19.77p 37.62p Diluted 32.40p 19.57p 37.27p Comparable basis 19.94p 19.11p 40.73p *Calculated on a £1 'A' ordinary share FULLER SMITH & TURNER P.L.C. UNAUDITED GROUP BALANCE SHEET 23 SEPTEMBER 2000 At At At 23 25 25 September September March 2000 1999 2000 £000 £000 £000 FIXED ASSETS 169,982 161,811 166,110 CURRENT ASSETS Stocks 3,934 8,829 4,329 Debtors 11,377 9,525 12,955 Deposits at financial institutions 15,771 15,796 8,977 Cash, at bank and in hand 3,598 1,885 4,237 34,680 36,035 30,498 CREDITORS: amounts falling due within one year 24,265 27,434 23,455 NET CURRENT ASSETS 10,415 8,601 7,043 TOTAL ASSETS LESS CURRENT LIABILITIES 180,397 170,412 173,153 CREDITORS: amounts falling due after more than one year Debenture stock 26,957 26,946 26,952 PROVISION FOR LIABILITIES AND CHARGES 1,588 596 1,680 151,852 142,870 144,521 CAPITAL AND RESERVES Called up share capital 25,206 25,105 25,118 Equity 1,600 1,600 1,600 Non equity 2,538 2,298 2,337 Share premium account 28,304 32,841 31,925 Revaluation reserve 94,204 81,026 83,541 Profit and loss account 151,852 142,870 144,521 FULLER SMITH & TURNER P.L.C. UNAUDITED GROUP CASH FLOW STATEMENT FOR THE 26 WEEKS ENDED 23 SEPTEMBER 2000 26 weeks 26 weeks to 52 to weeks to 23 25 September 25 September March 2000 1999 2000 £000 £000 £000 NET CASH INFLOW FROM OPERATING ACTIVITIES 11,761 11,568 22,633 RETURNS ON INVESTMENT AND SERVICING OF FINANCE Preference dividends paid (60) (60) (120) Interest received 526 849 1,247 Interest paid (1,098) (1,073) (2,188) (632) (284) (1,061) TAXATION Corporation tax paid (1,250) (315) (5,313) CAPITAL EXPENDITURE AND FINANCIAL INVESTMENT Payments to acquire tangible fixed assets (13,950) (9,650)(23,316) Payments to acquire fixed asset investments (1,680) (70) (212) Receipts from sales of tangible fixed assets 10,805 811 1,541 Receipts from sale of retail wine shops 3,160 - 4,285 (1,665) (8,909)(17,702) EQUITY DIVIDENDS PAID (2,348) (2,152) (3,168) TOTAL NET CASH INFLOW/(OUTFLOW) BEFORE THE USE OF LIQUID RESOURCES AND FINANCING 5,866 (92) (4,611) MANAGEMENT OF LIQUID RESOURCES* (6,794) (299) 6,520 FINANCING Issue of equity shares 289 297 349 MOVEMENT IN CASH IN THE PERIOD (639) (94) 2,258 RECONCILIATION OF OPERATING PROFIT TO NET CASH INFLOW FROM OPERATING ACTIVITIES Operating profit 7,868 7,450 13,521 Depreciation 4,047 4,026 8,351 Loss/(profit) on disposal of tangible fixed 16 (28) (33) assets Impairment of fixed assets - - 1,571 Provision for onerous leases - - 1,084 EARNINGS BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION 11,448 11,931 24,494 (INCREASE)/DECREASE IN WORKING CAPITAL Stocks 395 (1,286) 3,214 Debtors (1,620) (704) (4,258) Creditors 1,055 2,110 (817) NET CASH INFLOW FROM OPERATING ACTIVITIES 11,761 11,568 22,633 * Management of liquid resources is the movement in cash on short term deposit at financial institutions FULLER SMITH & TURNER P.L.C. NOTES TO THE ACCOUNTS FOR THE 26 WEEKS ENDED 23 SEPTEMBER 2000 1. INTERIM STATEMENT The interim statement does not constitute full accounts as defined by S.240 of the Companies Act 1985. Full accounts for the year ended 25 March 2000, including an unqualified auditors' report, have been delivered to the Registrar of Companies. The interim accounts, which are unaudited, have been prepared on the basis of accounting policies consistent with those set out in the Company's March 2000 Annual Report and Accounts. 2. SEGMENTAL ANALYSIS Continuing Continuing Discontinued operation operation operation Fuller's Inns Beer Company Retail Wine Total Shops 26 weeks to 23 2000 2000 2000 2000 September £000 £000 £000 £000 TOTAL SALES 46,035 28,413 - 74,448 Inter-segment - (11,443) - (11,443) sales Sales to third parties 46,035 16,970 - 63,005 - SEGMENTAL PROFIT 8,000 1,867 - 9,867 Net central (1,999) costs Operating profit 7,868 Interest (640) payable net Profit on ordinary activities before exceptional items 7,228 Non-operating exceptional profits 3,142 Profit on ordinary activities before taxation 10,370 ASSETS EMPLOYED Segmental assets 144,013 16,087 - 160,100 Unallocated net (8,248) liabilities Total net assets 151,852 Continuing Continuing Discontinued operation operation operation Fuller's Inns Beer Company Retail Wine Total Shops 26 weeks to 25 1999* 1999* 1999* 1999* September £000 £000 £000 £000 TOTAL SALES 41,813 26,769 13,918 82,500 Inter-segment (11,052) (11,052) sales - - Sales to third parties 41,813 15,717 13,918 71,448 SEGMENTAL PROFIT 7,749 1,400 161 9,310 Net central (1,860) costs Operating profit 7,450 Interest (548) payable net Profit on ordinary activities before exceptional items 6,902 Non-operating exceptional profits 165 Profit on ordinary activities before taxation 7,067 ASSETS EMPLOYED Segmental assets 132,581 15,625 5,872 154,078 Unallocated net (11,208) liabilities Total net assets 142,870 Continuing Continuing Discontinued operation operation operation Fuller's Inns Beer Company Retail Wine Total Shops 52 weeks to 25 2000 2000 2000 2000 March £000 £000 £000 £000 TOTAL SALES 84,892 55,881 23,940 164,713 Inter-segment (22,357) (22,357) sales - - Sales to third parties 84,892 33,524 23,940 142,356 Segmental profit before FRS 11/12 15,435 4,088 502 20,025 FRS11/12 (2,655) - - (2,655) SEGMENTAL PROFIT 12,780 4,088 502 17,370 Net central costs (3,849) Operating profit 13,521 Interest payable (1,373) net Profit on ordinary activities before exceptional items 12,148 Non-operating exceptional profits 1,544 Profit on ordinary activities before taxation 13,692 ASSETS EMPLOYED Segmental assets 138,708 18,332 - 157,040 Unallocated net (12,519) liabilities Total net assets 144,521 * Following the disposal of the retail wine shops, the wholesale wine operation is now included in the Beer Company. Accordingly the comparative figures have been restated to reflect the revised structure and the current relationship between the business segments. 3. TAXATION Corporation tax has been provided at an effective rate of 30.0% (1999: 30.0%, for the full year to 25 March 2000: 30.4%) on the pre-exceptional profits for the half year to 23 September 2000. Because of the availability of rollover relief, no tax is provided on the exceptional profit on the sale of properties. 4. ORDINARY DIVIDENDS 23 September 25 September 25 March 2000 1999 2000 pence pence Pence Interim 4.38 4.05 4.05 Final - - 9.36 4.38 4.05 13.41 The pence figures above are for the £1 'A' ordinary shares. The unquoted 10p 'B' shares carry dividend rights of 1/10 of those applicable to the £1 'A' ordinary shares. Dividends on the unquoted £1 'C' ordinary shares are the same as the listed £1 'A' ordinary shares. 5. EARNINGS PER SHARE 23 25 25 March September September 2000 1999 2000 £000 £000 £000 Profit attributable to equity shareholders 8,141 4,937 9,406 Adjustment in respect of non-operating (3,142) (165) (1,544) exceptional profit FRS 11 impairment of fixed assets - - 1,571 FRS 12 provision for onerous leases less tax - - 750 relief Comparable earnings attributable to equity 4,999 4,772 10,183 shareholders Weighted average share capital 25,069,000 24,971,000 25,003,000 Dilutive outstanding options 54,000 250,000 236,000 Adjusted weighted average share capital 25,123,000 25,221,000 25,239,000 Basic* 32.47p 19.77p 37.62p Diluted* 32.40p 19.57p 37.27p Comparable* 19.94p 19.11p 40.73p *Calculated on a £1 'A' ordinary share. Earnings on the unquoted 'B' 10p ordinary shares are 1/10 of the figures for the £1 'A' ordinary shares, earnings on the unquoted £1 'C ' ordinary shares are the same as the listed £1 'A' ordinary shares. The calculation is based on earnings (after deducting preference dividends) and on the average weighted ordinary share capital. Comparable earnings exclude all exceptional profits, FRS11 impairment of fixed assets and FRS12 provision for onerous leases (but does include FRS 15 additional depreciation). 6. RECONCILIATION OF NET CASH FLOW TO 23 September 25 September 25 March MOVEMENT IN NET DEBT 2000 1999 2000 £000 £000 £000 Movement in cash in the period (639) (94) 2,258 Cash outflow/(inflow) from movement in liquid 6,794 299 (6,520) resources Amortisation of issue costs (5) (5) (11) Movement in net debt in the period 6,150 200 (4,273) Net debt at the beginning of the period (13,738) (9,465) (9,465) Net debt at the end of the period (7,588) (9,265) (13,738) 7. SHAREHOLDERS' INFORMATION Shareholders who converted their £1 'A' ordinary shares to £1 'C' ordinary shares are reminded that they have 30 days from 1 December 2000 should they wish to reconvert those 'C' shares back to 'A' shares. Appropriate forms are available from the Company Secretary. The next available opportunity after that will be June 2001. 8. INTERIM REPORT Copies of the interim report are being sent to shareholders and will be available from the Company's registered office: Griffin Brewery, Chiswick, London W4 2QB.

Companies

Fuller Smith & Turner (FSTA)
UK 100
FTSE quotes by TradingView

Latest directors dealings

All directors dealings today