Fuller, Smith & Turner P.l.c. Class A · LSE:FSTA
Fuller, Smith & Turner P.l.c. Class A — FY2025 Earnings Presentation
30 slides from Fuller, Smith & Turner P.l.c. Class A's earnings presentation, June 2025
Slide 1: Full Year Results for the 52 weeks ended 29 March 2025
Full Year Results for the 52 weeks ended 29 March 2025
Slide 2: Agenda
AGENDA 01 | OVERVIEW 02 | FINANCIAL REVIEW 03 | STRATEGIC PROGRESS 04 | CURRENT TRADING & OUTLOOK 05 | Q&A
Slide 3: A Great Long-Term Investment
A GREAT LONG-TERM INVESTMENT Fuller’s has always been, and remains, a great long-term investment A resilient business model • Strong Balance Sheet – freehold asset backing with low debt • Premium customer base, better equipped to withstand tougher economic times • Secure and robust dividend yield •
Slide 4: Building on Our Strengths
BUILDING ON OUR STRENGTHS Getting the big decisions right ... at the right time Launched buy back Sold 37 non-core Tenanted Completed buyback Final dividend of 12.35p of 6.5m ‘A’ shares pubs – changes to Tenanted of all 6.5m ‘A’ shares issued in giving a total return to estate have increased April 2
Slide 5: Strong Financial Results
STRONG FINANCIAL RESULTS Like for Like (‘LFL’) Sales Adjusted Profit Before Tax Market average Managed LFL +113% £27.0m 11.0% £20.5m £12.7m 5.2% FY24 FY25 FY23 FY24 FY25 • Outperforming the market • Strong growth of underlying profitability • Continuing into FY26 • We are delivering improvements acr
Slide 6: Strong Shareholder Returns
STRONG SHAREHOLDER RETURNS Adjusted earnings per share (‘EPS’) Annual dividend +123% +35% 19.76p 34.22p 17.75p 14.68p 24.48p 16.10p FY23 FY24 FY25 FY23 FY24 FY25 • Profit growth plus share buybacks yielding • The strong EPS growth has enabled good industry leading EPS growth growth in income for sha
Slide 7: A Confident Approach to the Future
A CONFIDENT APPROACH TO THE FUTURE Fuller’s is a strong business with a great track record – we are optimistic about the future and confident in… Our proposition Our quality estate Our people • Delivering a premium The best freehold Excellent training offer and high-quality pub and hotel estate to d
Slide 8: Financial Review
FINANCIAL REVIEW
Slide 9: Income Statement
INCOME STATEMENT FY2025 FY2024 £m £m • Strong revenue growth, with total sales up by 5% Revenues 376.3 359.1 +5% • Improvement in operating margins, Operating costs (335.9) (324.6) despite challenging environment up from 9.6% Adjusted operating profit 40.4 34.5 to 10.7% Finance costs (13.4) (14.0) •
Slide 10: Divisional Results
DIVISIONAL RESULTS FY2025 FY2024 £m £m Managed Pubs and Hotels • Revenue in Managed Pubs and Hotels increased Revenue 342.7 325.3 by 5%, strong performances across the estate Operating profit* 47.6 41.6 EBITDA* 70.9 64.0 • Operating profit up 14% on prior year with EBITDA % 20.7% 19.7% Managed EBITD
Slide 11: Managed Revenue Analysis
MANAGED REVENUE ANALYSIS LFL Sales v PY • Excellent like for like sales growth of +5.5% +5.6% +5.2% against prior year, outperforming +5.2% the market on average by 2.5 ppt +3.6% • All areas of the estate in strong growth Rural Suburban Urban Total No of 31 68 69 168 sites* Total Sales £m Well-balan
Slide 12: Managed Margin Growth
MANAGED MARGIN GROWTH Managed EBITDA % Gross profit improved through: • Enhanced food development • Premiumisation of offer 20.7% • Effective procurement and management of inflation 19.7% Labour costs have increased, National Living Wage (‘NLW’) increase of 9.8% in April 2024, partially mitigated by
Slide 13: Strong Balance Sheet
STRONG BALANCE SHEET High quality asset base FY2025 FY2024 • 87% of the estate are freehold sites £m £m • Invested £28m into the estate to maintain Property, plant & equipment* 585.7 581.9 and enhance our premium position Right-of-use assets (IFRS 16) 52.8 58.7 • Acquired Lovely Pubs and The White S
Slide 14: Net Debt
NET DEBT Net debt at Reduced leverage – New banking facilities of Facility is split between 29 March 2025 of net debt/EBITDA** £185m have been agreed a term loan of £85m £142.2m excluding of 2.36 times (30 for a tenure of three years and a RCF of £100m leases (30 March March 2024: 2.5 times) through
Slide 15: Cashflow
CASHFLOW FY2025 FY2024 £m £m • Robust cashflow generation Adjusted EBITDA 67.6 60.8 • Working capital outflow is largely the reversal of inflow Working capital (7.7) 7.7 that arose last year due to timing of payment runs Interest (10.0) (10.4) • Acquisition of Lovely Pubs in August 2024 and The Whit
Slide 16: Capital Allocation Framework
CAPITAL ALLOCATION FRAMEWORK Policy Targets and Philosophy FY2025 Update and FY2026 Outlook Invest in long-term Returns-based approach Invested £28m into the estate in FY2025 organic growth to capital investment with plans to invest similar levels in FY2026 • FY2025 dividend of 19.76p – up 11% Susta
Slide 17: FY2026 Guidance
FY2026 GUIDANCE We will continue to deliver sales and earnings growth despite the impact of external factors Depreciation Interest charge in the region of lowered to £28m £12m Adjusted effective Capital tax rate estimated at expenditure of 27% £25m – £30m IFRS16 reconciliation in appendix
Slide 18: Strategic Progress
STRATEGIC PROGRESS
Slide 19: Positioning the Business for Continued Success
POSITIONING THE BUSINESS FOR CONTINUED SUCCESS Changes to the Board We will continue to build on our long-term strategy Michael Turner Simon Emeny will Fred Turner Jane Bednall was will retire in July become Executive to become appointed to the by investing in: after 47 years Chairman – Chief Operat
Slide 20: Investing in Our Iconic Estate
INVESTING IN Case Study: The Head OUR ICONIC ESTATE of the River, Oxford Invested £28m in Investment: £1.9m 14 major schemes Works: Total electrification, Refurbished 277 bedrooms – complete refurbishment of 27% of the Managed estate 19 bedrooms – including installation of air conditioning, Installe
Slide 21: Growth Through Acquisition
GROWTH THROUGH ACQUISITION Estate enhancing acquisitions Acquired Lovely Pubs – seven outstanding sites in village locations around Warwickshire and Worcestershire for £22.5m – an EBITDA multiple of 7.25x Acquired The White Swan, Twickenham – an iconic site in our heartland Strong Balance Sheet – fu
Slide 22: Investing in Our People
INVESTING IN OUR PEOPLE Strong leadership building engaged teams, delighting customers and growing sales In FY2026 we will: Open the Fuller’s Kitchen Academy and further develop the Fuller’s Chefs’ Guild Continue with Lead Your Way to drive internal performance and promotion Recruit a further 200 ap
Slide 23: Our Premium Customer Propositions
OUR PREMIUM CUSTOMER PROPOSITIONS Aligning our estate around our most valuable customer groups London City Premium Destination Neighbourhood Primary Customer Group Profile Primary Customer Group Profile Primary Customer Group Profile Mature Premium Diner Young Urban Professionals | Tourists Upmarket
Slide 24: Using Systems to Optimise Revenue
USING SYSTEMS TO Case Study: #OnlyInThePub OPTIMISE REVENUE Overview: Our Cask Ale 1.8 million customers on our campaign #OnlyInThePub was contactable database supported digitally across all our - Can be contacted directly via channels: targeted email or SMS Email 5.1 million total customers on our
Slide 25: Case Study: Country Premium
CASE STUDY: COUNTRY PREMIUM All elements combining to deliver outstanding results for our customers and the business Property: • Kerb appeal and gardens • Choice of furniture and colour palette People: • Service coaches and uniforms Proposition: • Prix fixe menus • Eco-comms and room compendiums • L
Slide 26: Tenanted Inns
TENANTED INNS An industry-leading Tenanted estate Pubs transferred from Managed in FY24, combined with sale of 37 non-core pubs in July 2024, contributed to Tenanted Inns EBITDA per pub rising by 23% Excellent generator of cash Premium customer base – economically resilient for our Tenants Maintaini
Slide 27: Current Trading and Outlook
CURRENT TRADING AND OUTLOOK Positive momentum continues with like for like sales in Managed Pubs and Hotels for the 10 weeks to 7 June 2025 rising 4.2% Planned capital investment programme of £30m for the full year to deliver further business-enhancing schemes Looking to AI to take our customer acqu
Slide 28: Appendix: Fuller's Estate
Appendix: Fuller’s Estate 30 Mar 29 Mar 11 June 2024 New Disposed 2025 Transferred* 2025 Total Fuller’s 370 8 (39) 339 (1) 338 Managed Pubs and Hotels 180 8 (2) 186 (1) 185 Tenanted Inns 190 - (37) 153 - 153 Number of bedrooms 1,015 19 (6) 1,028 - 1,028 *One Managed pub transferred to unlicensed pro
Slide 29: Appendix: IFRS16 reconciliation
Appendix: IFRS16 reconciliation Pre IFRS16 IFRS16 Post IFRS16 £m £m £m Revenue and other income 376.3 - 376.3 Operating costs (338.8) 2.9 (335.9) Adjusted operating profit 37.5 2.9 40.4 Finance costs (10.3) (3.1) (13.4) Adjusted profit before tax 27.2 (0.2) 27.0 Separately disclosed items 6.8 - 6.8
Slide 30: Appendix: A geographically balanced business
Appendix: A geographically balanced business 165 Managed 6 Bel & The Dragon 7 Cotswold Inns & Hotels 7 Lovely Pubs 153 Tenanted
Fuller, Smith & Turner P.l.c. — FY2025 Earnings Presentation on 6ix