Fulller, Smith & Turner – Interim to 30th September 2017

Financial Highlights

·     Adjusted profit before tax¹ up 4% to £23.8 million (2016/17: £22.8 million)

·     Adjusted earnings per share² up 5% to 34.22p (2016/17: 32.44p)

·     Revenue up 6% to £209.3 million (2016/17: £197.6 million)

·     EBITDA³ up 4% to £37.6 million (2016/17: £36.3 million)

·     Interim dividend up 4% to 7.55p (2016/17: 7.25p)

·     Pro-forma net debt to EBITDA⁴ at 2.8 times (2016/17: 3.0 times)

Operational Indicators

·     Managed Pubs and Hotels outperformed the market, with like for like sales growing by 3.6% and a rise in like for like accommodation sales of 8.2%

·     Tenanted Inns like for like profit increased 3%, with 11 pubs sold and average EBITDA per pub rising 7%

·     Total beer and cider volumes for The Fuller's Beer Company rose 1% against a flat UK market

Strategy Update

·     Continued programme of investing in our estate to maintain our premium position and offer a first-class customer experience

·     Addition of a further four bedrooms to the estate during the first half, with 14 more since the period end

·     Pipeline of four managed sites

·     Progression of strategic plan for our Tenanted Inns to grow this part of the business and benefit both Fuller's and our Tenants

·     Rebranded and increased marketing investment in London Pride to reinforce the quality and authenticity of our core brand

·    Investment in our central IT and back office systems, and improvements to our digital footprint, starting to deliver benefits across the business

Current Trading and Outlook

·     Managed Pubs and Hotels like for like sales up by 3.7% for 33 weeks

·     Tenanted Inns like for like profit rose 2% for 33 weeks

·     Total beer and cider volumes increased 1% for 33 weeks

·     Acquired The Manor near Christchurch, a freehold pub with 10 bedrooms

·    Two new sites in key transport locations – Euston (The Signal Box) and Liverpool Street (The Parcel Office) – due to open in 2018

·     Continued focus on investing in our people, our brands and our estate to deliver our strategic vision

·     Well-invested, balanced business well-placed to mitigate continued headwinds.