Fuller Smith & Turner PLC (AIM:FSTA) said sales had been strong in the first sixteen weeks of its current financial year with sales up and margins improving.
The London-focused pub and hotel owner reported like-for-sales growth of 5.3% in the period to 20 July, which covered the month of the Euro 2024 tournament.
Margins and profits have been helped by easing inflationary pressures, with chief executive Simon Emeny stating: “I am delighted to see our sales growth momentum continue, particularly against the backdrop of easing inflation, which will help us to grow margins and profit, as well as revenue."
“We have had a strong start to the financial year, and we look forward to the opportunities the future will bring,” he added.
Since the year-end, Fullers has completed the sale of 37 non-core pubs to Admiral Taverns for £18.3 million cash and the sale of The Mad Hatter in Southwark for a total consideration of £20 million.
As a result, underlying net debt has been reduced to £92 million, which will help fund the ongoing share buyback programme.
Ahead of Fuller's AGM, Emeny also called on the new government to reform business rates.
“We have a new UK government in place, and I urge Sir Keir Starmer to stand by his commitment to overhaul our archaic business rates system," he said.