- Strong trading continues
- Confident in meeting market expectations
- New share buyback and bank facility
Premium pubs and hotels group Fuller, Smith & Turner (FSTA) said trading momentum continues to be strong as it confirmed it will meet market expectations for the full year to the end of March and announced a new share buyback.
Investors welcomed the trading update with the shares gaining as much as 5% to 545.9p, partially reversing the 27% fall seen over the last six months brought about by the anticipated impact from additional employee costs resulting from the Autumn budget.
SHARE BUYBACK AND NEW BANKING FACILITY
After completing the repurchase of 6.5 million A shares in January at an average price of 613p, a 26% discount to the price of the equity placing in 2021, Fuller’s intends to acquire a further one million A shares.
‘We believe that the current share price of the company significantly undervalues the business and does not reflect the intrinsic net asset value of our high quality, primarily freehold estate,’ explained Fuller’s.
The company said it has agreed a new unsecured £185 million bank facility with existing relationship banks on better terms which reflects its ‘strong’ financial position.
‘This facility provides us with significant headroom to pursue further growth through appropriate acquisitions and to enhance returns for shareholders,’ said Fuller’s.
The firm also revealed it has completed the buy in of its pension plan with Legal & General (LGEN), reducing future liabilities and providing an enhanced level of security and service for members.
RIVERSIDE GEM
Fuller’s has exchanged contracts to acquire the freehold of The White Swan pub in Twickenham which will complete on 19 March.
CEO Simon Emeny said: ‘The White Swan is a riverside gem in Twickenham, and we look forward to welcoming the team there into the Fuller’s family.’
‘With just two weeks to go, we have had a very strong year – and to cap it off with such an excellent new acquisition is the icing on the cake.
‘We are confident of meeting market expectations for the full year and are taking appropriate actions to manage the impact of forthcoming market challenges,’ added Emeny.
Consensus forecasts call for revenue of £368 million and earnings per share of 30.3p according to Stockopedia and Refinitiv data, representing year-on-year growth of 2.5% and 16.6% respectively.
Full year results are expected to be announced on 11 June 2025.
