Fuller's shares down on cautious outlook

Investing.com -- Shares of Fuller, Smith & Turner (LON:FSTA ) traded lower on Wednesday after the pub operator issued a positive but cautious update on its first-half performance, flagging potential challenges in its longer-term outlook. 

While Fuller’s reported solid growth, with like-for-like sales rising by 5.2% across its managed pubs and a group pre-tax profit increase of 21% to £17.6 million—outpacing initial expectations of £16.5 million—the company voiced concerns about potential headwinds tied to recent budget measures. 

The first-half gains reflect a broad-based improvement in Fuller’s operations, with food, drink, and accommodation segments all contributing to the uptick. 

Fuller also flagged an ongoing strong momentum, pointing out that LFL sales are up 5.4% year-to-date, and holiday bookings for the Christmas season are tracking 15% higher than last year. 

The company’s portfolio adjustments appear to be paying off, enhancing operational quality without raising net debt, which has even ticked down year-on-year.

“We are in excellent shape, and despite the fresh challenges presented by the Chancellor’s recent budget, we remain positive and optimistic about the future,” said Fuller’s chief executive, Simon Emeny.

Source: Investing.com