Fuller Smith & Turner PLC (AIM:FSTA) is counting on a boost from the upcoming football World Cup and a Christmas free of Covid restrictions but cautioned that the challenging economic environment is having an impact on its business.
The pubs group posted first-half results that revealed a recovery from the pandemic, which it celebrated with a 20% increase in the interim dividend to 4.68p.
Revenue grew to £168.9mln in the 26 weeks to 24 September 2022 from £116.3mln in the corresponding period last year, the company said in its earnings release.
Like-for-like sales rose by 20%, with Central London sales surging 67% as workers went back to the office and international tourists returned to the capital.
Adjusted pre-tax profits increased to £9.8mln from £4.6mln as the benefit of the sales recovery exceeded inflationary cost rises.
The company said the sales momentum has continued into the second half despite disruption caused by train and tube strikes.
Like-for-like sales for the seven weeks to 12 November 2022 were up 13%, with Central London seeing growth of 20%.
The company also hailed “strong” Christmas bookings and predicted an “additional uplift” from the World Cup.
Looking ahead, chief executive Simon Emeny said: "While we look forward to our first Christmas free of restrictions for three years, and the added bonus of a FIFA World Cup, we are trading in an increasingly challenging environment.
“Cost pressures from energy bills, wage and food inflation, and increasing interest rates continue to impact us and all businesses in the hospitality sector.”
Shares fell 1.24% to 485.88p in early trade.