Fuller’s profit falls as inflation bites away at revenue jump

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Fuller, Smith & Turner PLC on Thursday reported a surge in annual revenue, but higher costs due to inflation meant a lower profit than a year ago.

The pub and hotel chain said pretax profit in the financial year to April 1 totalled £10.3 million, down 10% from £11.5 million a year prior. Revenue climbed 33% to £336.6 million from £253.8 million, as its business improved from the impact of Covid-related resections on trade.

Meanwhile, operating costs increased 37% to £325.7 million from £237.3 million.

Despite the profit fall, which it blamed on higher energy, food and wage prices as well as tube and train strikes, the company declared a total dividend of 14.68p, a 30% lift from 11.31p a year ago.

Looking forward, Chief Executive Simon Emeny said he is ‘more optimistic about the future’ than he has been since before the pandemic.

‘While the well-documented inflationary environment has been a challenge, there are positive signs on the horizon. In addition, we are ever hopeful of a resolution to the ongoing train strikes to allow us to further benefit from the increasing numbers of office workers and international tourists returning to the capital,’ he said.

Fuller, Smith & Turner shares rose 2.5% to 563.84 pence each on Thursday morning in London.

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