Fullers, a renowned chain of public houses, has authorized a substantial rise in its shareholder dividend, elevating it by nearly 21 percent. This determination follows the company’s announcement of a notable 39.8 percent increase in its annual pre-tax profits, reaching an impressive £14.4 million.
The pub conglomerate ascribed its financial accomplishments to several factors, including a remarkable double-digit growth in like-for-like food sales, a 9.8 percent growth in drinks sales, and a significant 7.8 percent increase in revenue from its hotels. As a result of this robust performance, Fullers’ revenue for the 52-week period ending in March escalated from £336.6 million to £359.1 million.
In order to reward its shareholders, Fullers made the decision to elevate its dividend from 14.7p to 17.8p per share, amounting to a total payout of £10.4 million.
CEO Simon Emeny expressed contentment with the company’s performance, affirming that Fullers had a robust year and that its momentum has persevered into the new financial year. He also noted that the company’s confidence for the upcoming year has been bolstered by the alleviation of inflationary pressures, particularly in the food and energy sectors.
Emeny articulated, “With the solid financial foundation of a strong balance sheet and a first-class, primarily freehold estate of iconic public houses and hotels, combined with a team that has the capability and capacity to drive the business forward, we are confident and enthused by the opportunities the future will bring.”
Operating 179 managed public houses and 190 tenanted inns primarily in the southern and central regions of England, Fullers has demonstrated resilience and adaptability despite the challenging market conditions brought about by the COVID-19 pandemic.
Julie Palmer, a partner at Begbies Traynor, acknowledged the company’s impressive performance but also highlighted that investors will be monitoring external factors such as the weather and the performance of the English football team in the upcoming European championships. She remarked, “Fullers will be hoping for warm summer evenings, beautiful hot weekends, and a stellar performance from England at the Euros. If it can get all three of those things this summer, it will have every reason to be cheerful, especially given the prospect of extended licenses if the Three Lions do particularly well.”
In conclusion, Fullers’ outstanding financial results and subsequent decision to elevate its shareholder dividend are indicative of the company’s resilience and confidence in its future prospects despite the challenges posed by the current economic climate.