Fuller Smith & Turner PLC (AIM:FSTA) shares rose 9.5% to 718p after the London pubs and hotels group reported a sharp increase in profits, raised its dividend and unveiled a further share buyback.
The pub operator posted adjusted pre-tax profit of £34.6 million for the year to 28 March, up 28% from £27 million a year earlier and beating the consensus forecast of £32.5 million.
Revenue rose 5.7% to £397.8 million, with like-for-like sales at its managed pubs and hotels increasing 4.9%. Food LFL sales swelled 3.5%, drinks fizzed 5.8% and accommodation revenue bounced 4.9%.
The full-year dividend was increased 7% to 21.2p and Fuller's announced plans to repurchase a further million shares once the current buyback programme concludes, with 2.3 million shares bought back during the year at an average price of £6.17.
The company also highlighted the value of its predominantly freehold estate, with directors valuing the property portfolio at £991 million, or £397 million above book value, implying an adjusted net asset value of £15.21 per share.
Executive chairman Simon Emeny said trading has continued positively into the new financial year, with like-for-like sales up 4.4% in the first 10 weeks.
"As we move into our summer season, preparations have gone well. Our garden investment programme has seen fresh space created for peak trading, advance bookings for the World Cup have been strong, and we are seeing increased demand for staycations benefiting our excellent rooms business."
He said the plan is to invest over £30 million across the estate, as well as beginning the transformation of The Barrowboy and Banker, an existing freehold site by London Bridge (see photo), where we will create a 26-bedroom hotel to mirror the successful investment made previously at The Counting House, Cornhill.
