Fuller Smith & Turner Share Discussion Threads

[essentialinvestor] 22/2/2022 14:38

Ian, tbf it's a complicated structure with the multiple classes of shares.

Not that impressed with their recent trading updates, perhaps summer proves to be better.

[jeffian] 21/2/2022 22:55

Well they may do, EI, but why click on the 'Financials' button on a website or turn to the market pages of newspapers when the statutorily verifiable information can only be obtained from a company's published report & accounts? I wouldn't trust any info that wasn't either in the accounts or issued via RNS.

[jeffian] 21/2/2022 19:13

I would always go to the company report & accounts as a source rather than websites like yahoo. I haven't got to grips with all the various classes of shares but the last published accounts indicate that 'family interests' own at least 54% of the 'B' shares and 64% of the 'C' shares, and those are only the declarable interests >3%, so there may be more holders beneath that level. I imagine that the 'families' still have enough to block any hostile approaches.

[marvelman] 17/2/2022 14:29

According to the article below, the founding families don't appear to have a significant holding in the company. Not sure about the voting rights however.

[essentialinvestor] 16/2/2022 19:55

Given the founding families respective stakes that would be their decision.


MAB and MARS are both exceeding pre covid revenue levels, from memory -
not making a case to buy either of those due to debt levels.

[marvelman] 16/2/2022 14:25

First point.....takeover and asset stripped by predator

Second point....Covid heavily skewed the last 2 years trading and will surely be less of an issue as confidence returns towards the new normality

The first point is the main reason why I am here. My only concern however, and a big one, is the debt refinancing due in Feb 23.

[essentialinvestor] 16/2/2022 14:07

Couple of points here.

How could that asset value ever be realised?,
Fullers have been at pains to suggest they are not a property company.
BOD show no interest in going down that route.

Secondly, and particularly allowing for inflation, those latest revenue figures
are not so great.

[cockneytrader] 09/2/2022 20:50

A real no brainer at this price. The property portfolio must be valued somewhere in the region of £1 billion. The market cap is currently £450m @ 700p, one could make the case for fair value @ 1400p. Fullers is cheap compared to Youngs and City Pub Company.

[marvelman] 08/2/2022 10:33

M_Kerr....very good analysis. You clearly have a financial mindset. I have just bought in on the back of the Questor article in the Telegraph today. Looks very undervalued as an asset and stands out a mile for a predator looking to asset strip whilst adding the better properties to its own portfolio. This is the only service business I have in my own portfolio given the current issues in the economy. Being an ex FD in a hotel group I believe I can see a bargain in this, Regards.

[m_kerr] 23/12/2021 10:32

bounced up a bit from recent lows. market doesnt seem as concerned about omicron anymore.

[m_kerr] 15/12/2021 22:28

i've run some quick numbers here. property with a net book value of £532m (i understand the bulk has not been revalued since 1999), enterprise value including leases of about £600m (about £525m excluding lease liabilities). in addition, the recent rights issue was actually at a fair premium to the current share price (£8.30 v £6.60 now).

this looks like potentially a very interesting investment. it is fully asset backed, at a materially cheaper valuation than young & co. and property prices are up many multiples of 1999 prices in london. the great thing about pubs from investors point of view is they are highly granular investments - you can sell them off one by one if you want to and have a wide pool of buyers. i expect that once lockdowns are over, liquidity will return to the market. property yields on quality london property are about 3-3.5%.

i had to rejig my figures as the FT had it down as a market cap of £262m vs my own calc of £390m! anyone else get caught out by that?

[darrin1471] 24/11/2021 16:38

Most trades went through at 684 again today.
bid/offer 682/684 is also a lot tighter than normal. Normally around a 20p spread

[darrin1471] 23/11/2021 17:36

Most of the trades went through on offer today (684) and few others above offer.
Fingers lightly crossed for the next few days

[essentialinvestor] 18/11/2021 16:23

Turned in to a nice day.

[essentialinvestor] 18/11/2021 12:31

Right so mildly positive seems to be the initial reaction?.

[essentialinvestor] 18/11/2021 07:26

Not sure what the market will make of that.

Net debt is a positive!, the rest is hopeful of a 2022 improvement.

Recent weeks trading now at 90% of 2019 levels, which is an improvement
from the last update.

Very significant share price underperformance re YNGA is explained by these numbers.

FY consensus on pre tax at £13 million prior to today,
that looks about right, maybe a little scope for some upgrades

[essentialinvestor] 17/11/2021 19:53

The new CFO looks a decent appointment.

Fullers appear to be significantly underperforming Youngs atm.

[darrin1471] 17/11/2021 19:13

Bought a few earlier this week. A bit of a gamble ahead of the results. I'm hoping poor London sales are already priced in and guidance is of an improving situation.
I may have bought a few months early.

[essentialinvestor] 17/11/2021 17:28

Had a few today, not sure if a good idea!.

[darrin1471] 16/11/2021 14:25

Half year results on Thursday 18th

"The next report will be on 18 November 2021, when the Company issues its half year results for the 26 weeks to 25 September 2021."

[essentialinvestor] 15/11/2021 18:03

Yup and Fullers have a very heavy concentration of pubs in London.

[darrin1471] 13/11/2021 16:57

Wetherspoons trading update from Wednesday:

Contrary to some forecasts (including our own), trade has been positive in the centre of many, but not all, larger cities and towns - and negative in the suburbs.

For example, sales have been positive in in central Liverpool (+9.1%), Newcastle Upon Tyne (+11.1%), Oxford (+11.3%), Chester (+4.3%), Bournemouth (+4.2%), Nottingham (+3.6%), Cardiff (+3.5%) and Manchester (+0.4%).

In contrast, trade has been lower in central London (-17.4%).

[essentialinvestor] 06/11/2021 19:21

Might get some support post update?,
Cost inflation a headwind though.