gamesinvestor
20 Jun 2016
Re: Fullers valuation "It might be tricky for FSTA to get out of brewing even if it wanted to do so, because so much of its image and advertising is tied up with the pure London brewing link."indeed, FSTA is very London-centric, but probably this is a positive thing, as it's pubs are a permanent feature.Whitbread was synonymous with brewing, a bit like Hoover was synonymous with hoovering (as opposed to Dysoning of course). So it can be done.Whitbread is now all Costa Coffee, Premier Inn and re-badged Beafeater nosh houses.Fullers could do what Young's did and hand the brewing over to Charles Wells in Bedford, who brew all the Young's stuff and very nice it is too -- although I do like the Fullers ales as well.Games
LK Hyman
17 Jun 2016
Re: Fullers valuation Mickey,Interesting point about Young's no longer being a brewer. It makes me think that FSTA is analogous to an integrated oil company whereas Young's is analogous to a pure explorer.Personally I like the relative smoothness of returns which ought to accrue to "integrated" operations, whether oily or brewery/pubco. There's no doubt that Young's has outperformed FSTA over recent months but I have no idea whether this due to Young's being out of brewing at a time when brewing hasn't been very profitable.It might be tricky for FSTA to get out of brewing even if it wanted to do so, because so much of its image and advertising is tied up with the pure London brewing link.LKH on the flybridge
smilingmickey1
17 Jun 2016
Re: Fullers valuation Hello games,I have holding in both Fuller and Youngs.Compare contrast the movement of net debt of each Company. The difference maybe that Fullers continues to be a brewer so has a need for capital that Young's no longer have. Youngs is growing sales and bottom line but with next to no increase in net debt from year to year.
gamesinvestor
17 Jun 2016
Fullers valuation Not an expert on this, but is the valuation all that compelling?The P/E is still up at 18 and the debt (borrowings) have grown from £142M 5 years ago to £184.7M at the close in March.Given the after tax profits are £33M you are looking at a ratio of Borrowings/Post Tax profit of 5.6X.Yield is 1.9% -- well covered though at least as far as profits are concerned, but cash? Fullers haven't increased it's cash for 5 years, albeit partly because they have bought more pubs.Not cheap -- there is however the argument about the asset backing at £533M, but is it that feasible to count this into the equation if many of the pubs, in the event of sale, might find it difficult to get change of use to unlock the value for other commercial or private real estate use?FSTA is still exposed to interest rate rises (if they ever happen of course) and the CEO has admitted that the minimum wage adds £2M to his salary bill.I suppose if Brexit doesn't happen and England win the Euros (laugh!) then non of the above will matter, as it'll get carried away with the euphoria, but !!!!Games - They are opening for brekky, which is good, they sold 1.7million coffees and they are launching their own ice cream -- look out Unilever!!
LK Hyman
14 Jun 2016
Interesting ... ... to see that Aberdeen's stake in FSTA has gone just above 10%.LKH on the flybridge
ookyfly
13 Jun 2016
Re: Interesting acquisition There must be a special corner of hell, occupied mainly by estate agents, who don't know the difference between 'its' and it's' and don't understand that 'deceptively large' means 'smaller than it looks', not 'bigger than it looks'. Innit?
LK Hyman
10 Jun 2016
Re: Interesting acquisition Two years ago ... to the day ... I posted this:"One pedantic criticism ... the Stable in Poole's entry in the Stable website contains this horrible grammatical solecism:"With it’s exposed beams ...."I am happy to be able to report that the solecism has been removed from The Stable website.Good to see FSTA takes note of what investors say, albeit on unimportant but niggling points such as this.If only Diageo were as receptive to investor feedback!Now all FSTA needs to do is to tell the webmeister at the Bull Hotel in Bridport to get rid of its errant "it's" and my cup will overflow.LKH on the flybridge
Simbrad
10 Jun 2016
it's up on researchtree
Simbrad
10 Jun 2016
Panmure published a note this morning: "Fuller’s has reported FY results for 52 weeks to 26 March 2016 with strong trading in the period. Total revenues increase by 9% to £350.5m, driven by managed LFL sales growth of 4.8%, PBT increase by +12% to £40.9m (PGe £39.5m) giving EPS +13% to 58.35p (PGe 55.0p). Current trading has slowed to +2.7%, beer and cider volumes -5% although this is impacted by short time period and calendar impact. Additionally, the company has purchased an addition 25% stake in The Stable post year end, bringing the total to 76%."
JoseFrio
10 Jun 2016
Re: RNS great results I'm not sure if FSTA publish how many freeholds they own but their strategy is to acquire freeholds and many, if not most of them are in W, SW and S London. These areas have seen house price inflation of 15% over the last year. The balance sheet shows an increase in the property estate value froim £410m to £465m, or 13%, but this includes new pubs and new freehold acquisitions. So I would say the valuation is pretty conservative.Soem of their pubs are large and in very valuable locations. The Duke of Kent on Scotch Common has an enormous garden, and the site must be worth over £10m to a developer. I hope the Fuller family have enough sense to sell it off if it does not earn its keep, assuming it is not leased. In fact it is hugely popular despite high beer and food prices so I'm not expecting any change in use anytime soon.My point is that the property underpins the company and the share price, and even if there will never be a time when the whole lot is sold and the value realised, it is still possible to juggle the estate and benefit from the valuations. The mediocre share price performance and the low dividends are a frustration but I am expecting FSTA to provide a solid home for my cash over the next few years. And it eases the pain of shelling out £4 for a pint of Pride if I know that a tiny part of it is coming back to me.
gamesinvestor
10 Jun 2016
Re: RNS great results [link] must all be pretty pleased with the results, they look pretty sound to me, being a mere watcher.Still, one day I might be a holder, but at present I'm a watcher and a drinker occasionally in London - always makes me think nostalgically about the old London when I visit one.Games - still watching & drinking - not catching any harm sine the share price has been steadily in decline for a year now.
LK Hyman
10 Jun 2016
Re: RNS great results Nige,Yes, pretty good results, though what worries me a bit is that, despite the rising sales and profitability, beer and cider volumes are declining, albeit slowly, though the decline since the year end seems to be gathering pace rather than being reversed.This is still a great asset play, in that the pubs and hotels would fetch far more, if the whole business was broken up and sold, than the current enterprise value. That is, however, of little consolation given that the family voting control means that it never will be broken up or taken over unless THEY want that, which they almost certainly will not want.Good to see FSTA increasing its stake in the Stable. That looks like an excellent business.The divi is still pretty manky .... one has to wonder whether FSTA at a yield of under 2% is better value than Shell, say, on over 7%.Nevertheless, all in all, FSTA is a very fine company indeed, and I'm happy to have 2% of my shrunken wad invested in it.LKH on the flybridge
Nige the snake
10 Jun 2016
RNS great results FULLER, SMITH & TURNER P.L.C.("Fuller's", "the Group" or "the Company"
Financial results for the 52 weeks ended 26 March 2016 Another excellent year from our great team of people Financial Highlights · Adjusted profit before tax1 up 12% to £40.9 million (2015: £36.4 million)· Adjusted earnings per share2 up 13% to 58.35p (2015: 51.51p)· Revenue up 9% to £350.5 million (2015: £321.5 million)· EBITDA3 up 11% to £65.0 million (2015: £58.7 million)· Total annual dividend up 8% to 17.90p (2015: 16.60p)· Statutory profit after tax up 17% to £33.0 million (2015: £28.3 million) Operational Indicators · Another year of strong like for like sales4, with growth of 4.8% in Managed Pubs and Hotels· Solid performance from Tenanted Inns, with like for like profits5 increasing 2%· Total beer and cider volumes down by 1%, with profits5 level Strategy Update · Acquired five new pubs and opened The Sail Loft, a newly built pub in Greenwich Reach· Record level of investment in the existing estate, providing strong returns· Acquired three freeholds of existing businesses· Further increased our focus on training and developing our people· Enhanced our craft beer range with new keg and canned products and grew sales and distribution of Oliver's Island, Frontier Craft Lager and Cornish Orchards Cider· Acquired a 51% stake in Nectar Imports, a wholesale drinks business· Opened six sites for The Stable, craft cider and gourmet pizza business Current Trading · Managed Pubs and Hotels like for like sales up by 2.7% in first 10 weeks· Tenanted Inns like for like profits for first 10 weeks down by 2%· Total beer and cider volumes down by 5% in first 10 weeks· Record year planned for investment in existing estate with seven schemes already completed and four more underway· Well-positioned for the future, with a solid, proven long-term business model and strong balance sheet Commenting on the results, Chief Executive Simon Emeny said: "It has been another outstanding year for the Company and I am delighted to be reporting an excellent set of results, particularly in the largest part of our business - our Managed Pubs and Hotels. We are seeing the rewards of our continued investment programme and the emphasis we have placed on recruiting, developing, rewarding and promoting the best people. We do this to ensure that across the business we are giving industry-leading service. "Our long-term approach is underpinned by a consistent strategy, but we continue to seek new, exciting opportunities to build our business further - keeping the Brewery as our beating heart. We have purchased pubs in geographical areas where we have previously lacked a presence, introduced new premium brands that the consumers of today and tomorrow are seeking out and continued to develop our pub designs and the quality and creativity of our menus. "Our business is in excellent shape and it has been a solid start to the year. Like for like sales in our Managed Pubs and Hotels for the first 10 weeks of the new financial year are up by 2.7% against strong comparatives from last year. Over the same period, like for like profits in our Tenanted Inns are down by 2% and beer and cider volumes have decreased by 5%. "The economy is difficult to read with the European referendum imminent, but while it is important to be aware of the external environment, we will continue with the exciting plans we have in place and our long-term perspective gives us the flexibility to react accordingly. "We will further invest in training our people and we will also be investing a record amount in refurbishing our existing estate, putting more focus on our delicious fresh food and continuing to attract new customers to our pubs. We have already completed seven major schemes in this current financial year including The Harpenden Ar
LK Hyman
31 May 2016
Re: Unusual timing for a resignation Jdhm,He must be going to a competitor. Surprised that he's not obliged to work out his notice!LKH on the flybridge
jdhm
31 May 2016
Unusual timing for a resignation With results due on 10th June the Managing Director of the Beer company goes "with immediate effect" "to pursue new opportunities".Surely not bad news to come. From Fullers?
