FULLER, SMITH & TURNER (FSTA) – Travel & Leisure
| Price: 644p +3% | P/E: 16x |
| Market Cap: £342m | Yield: 3.4% |
Pub group Fuller, Smith & Turner posted strong results for the six months to the end of September with revenue up 6.9% to £207.5 million and adjusted EPS (earnings per share) up 37% to 30p.
The firm flagged ‘industry-leading’ LFL sales growth of 4.6% with drink sales up 6.5%, food up 2% and accommodation up 3.3%. Moreover, sales to 8 November have continued to rise at 4.6% on a LFL basis.
Christmas bookings are up 16% on the same period last year, and the business is ‘in excellent shape and primed for future long-term growth’.
Our View
The market clearly likes today’s update, the first since Simon Emeny stepped up to executive chairman.
The hospitality sector has been out of favour for a while (FSTA shares are flat ytd vs an 18% rise in the FTSE All Share) so valuations are far from demanding and Fullers has an attractive mix of revenue streams.
Read the press release here: https://www.fullers.co.uk/corporate/investors/regulatory-announcements
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