Fuller’s reports strong current trading with lfl sales up 5.4% this year and Christmas bookings up 15%, ‘positive and optimistic’ despite Budget ‘challenges’: Fuller’s has reported strong current trading, with like-for-like sales up 5.4% this year and Christmas bookings up 15%. The company also said it is “positive and optimistic” about the future despite the “challenges” posed by the Budget. It comes as the business reported revenue of £194.1m for the 26 weeks to 28 September 2024, up from £188.8m in the 26 weeks to 30 September 2023. Its adjusted Ebitda was up from £34.8m to £37.6m in the period, while its adjusted pre-tax profit rose from £14.5m to £17.6m. Statutory profit before tax of £29m (H1 2024: £14.9m) reflected a book profit of £17.2m arising from the disposal of The Mad Hatter hotel. Net debt of £128.2m (H1 2024: £129.4m) was reported, with cash generated from the business, combined with strategic disposals, invested in “enhancing the existing estate, acquiring Lovely Pubs and financing shareholder returns”. The company said it was “an excellent first half of the year with growth in all areas”. Food like-for-like sales increased by 5.5%, while drink like-for-like sales increased by 4.9% and accommodation like-for-like sales increased by 4.9%. The company invested £10m across the estate, including at The Head of the River in Oxford. It completed the sale of 37 non-core tenanted pubs to Admiral Taverns for £18.3m, resulting in “a more profitable and sustainable tenanted business, with average Ebitda per site up 12%”. It completed the sale of The Mad Hatter for a total consideration of £20m and acquired the seven-strong Lovely Pubs for £22.5m. Chief executive Simon Emeny said: “We have had a great start to the year – delivering on all five pillars of our strategy and ensuring that we succeed in our purpose, to create experiences that nourish the soul. In our Managed Pubs and Hotels, we have delivered like for like sales growth of 5.2%, ahead of the industry's CGA RSM Hospitality Business Tracker on average by two percentage points, and our adjusted profit before tax has risen by 21%. Our estate is in amazing shape. The sale of 37 non-core tenanted pubs to Admiral Taverns for £18.3 million, followed by the acquisition of the Lovely Pubs business on a multiple of 7.25x Ebitda for £22.5m, gives us 185 outstanding Managed Pubs and Hotels and 153 excellent Tenanted Inns. Without a shadow of doubt, our estate has never been in such good shape, and we continue to invest to maintain our quality, with £10m of capital expenditure in the first half. We will be investing a further £20m in our estate during the second half, including substantial schemes at The Drayton Court in West Ealing, The Chamberlain in the City and the Bel & The Dragon in Odiham. We also continue to look at appropriate opportunities to drive our long-term strategy of growing the estate. Following our strong first half results, we have continued to build on our momentum with like for like sales for the 32-week period rising by 5.4%. This sustained underlying performance, combined with the added benefit from our Lovely Pubs acquisition and encouraging Christmas bookings up 15%, provides us with confidence that we are on track to meet current market expectations for the financial year. In summary, everything that is in our control is going well. We have an outstanding, predominately freehold, well-invested estate, a driven and motivated team – who are supported by continuous development – and a clear, consistent strategy. 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.”