A London boom has translated into bumper half-year results at pub and hotel group Fuller Smith & Turner PLC (AIM:FSTA).
Sales rose by 12% to £188.8 million in the 26 weeks to 30 September 2023, driven by “strong performances across the estate” while profits jumped by 48% to £14.5 million.
“Trading in the City continues to grow and although we cannot rule out further tube or train strikes, we are looking forward to a good Christmas with bookings currently 11% ahead of last year," said Simon Emeny, chief executive.
In the latest half-year, food sales were up by 15.5%, drink sales by 10.9% and accommodation revenue 13.4% higher.
For the 32 weeks to 11 November, sales are up by 11%, Fuller’s added.
Emeny said it had been a strong start to the year and was a “superb platform" for future growth.
“External factors are moving in our favour with office workers continuing to return to their desks and the City becoming a seven-day operation with increased leisure spend at the weekend."
Even so, Emeny called for more government support for hospitality even with its good performance.
“Forthcoming changes to business rates, including an inflation-linked rise in the all-important business rates multiplier, will hit the industry hard and while well-funded companies like Fuller's have the bandwidth to withstand (albeit reluctantly) these increases, many will not,” he said.
The interim dividend goes up by 42% to 6.63p.
Shares rose 4% to 598p.