Forward PE still remains steep, under £5 may be worth a look.
Yes I realise others look at NAV here,
however it's a pub and not a property business. |
I topped up with another 632 shares over the last two days. Decent trading update. After the 25% drop since the budget we must be nearing the bottom? 3.2% progressive yield too. The quality estate valuation isn't reflected in the share price I'm convinced FSTA will be a great investment given time. Cheers! |
Sold before Reeves budget, luckily made good 1 year gain. Update good, but going forward worry as big rates & NI increases to come. Hold off until clearer picture, good company but Reeves punishing high st. |
Bought in here today.
Nice to see they have now (once current purchase streak done) bought back all the 6.5m shares issued during covid, issued at 830p, bought back on average below that price.
Also bought into Wetherspoons today.
Like both with their increases in freeholds and solid profits. GLA |
3*
Fuller, Smith & Turner posted Solid looking Interims for the period to 28th September this morning. Like for like sales for Managed Pubs & Hotels in H1 was up 5.2%, demonstrating continued market outperformance, revenues and other income were up to £194.1m. Adjusted profit before tax increased by 21% to £17.6 million from H1 2024 £14.5 million, statutory profit before tax of £29.0 million was nearly double the H1 2024 figure of £14.9 million...from WealthOracle
wealthoracle.co.uk/detailed-result-full/FSTA/973 |
Thanks for your insights giltedge, much appreciated your take on the AGM, which unfortunately I couldn't attend. I've held shares in Fullers for many years, a quality company & I think until covid, had increased their dividend every year since the war! I note they've just purchased Warwickshire based lovely pubs. I live in Stratford so know some of these pubs & they are indeed top quality. My two locals in Stratford are always busy, great beers & food. I use my shareholder Inndulgence card to get 15% discount so happy days. I have left the third week of July free next year so hope to attend the AGM. More insights would be appreciated giltedge & others. I'm sure the share price will recover in time. I doubt we'll regret owning FSTA. Good luck |
Attended meeting on 23rd, Good start to year over 5% revenue growth, pubs in good shape operational wise, cap ex & maintenance, way ahead of competition. Estate still growing revenuse as City & Rail pubs still recovering from return to Office. No further sales expected after sale of noncore smaller pubs to Admiral. Cash received for Mad Hatter + as a bonus still operating Mad Hatter as new owners not ready to takeover site, so still generating cash profits on top. Confirmed NAV over £13. & commitment to craft beers & staff training. Continuing buybacks as Director,s consider shares good value. Good news & couple of pints of London Pride, made a good day. Up 20% 1 yr ,+ divs. My Last post as lack of BB interest in this steady performer. A core SIPP holding for me. |
Great Result, dividend up 21%, buyback another 2.5 million, still haven't completed the other 1 million buyback!, stock hard to find. Good news for us shareholders. To come Mad Hatter Sale £20M, sale of tenanted pubs £17m, & pension surplus £17m. Euros 2024 should give a boost. Think I will have a pint on the way home to celebrate!. |
Deutsche raises a glass to Fuller disposals
Pub group Fuller Smith & Turner (FSTA) has demonstrated value with the sale of non-core pub assets, says Deutsche Bank.
Analyst Tim Barrett retained his ‘buy’ recommendation and target price of £12.50 on the stock, which inched up 0.3% to 700p last week.
The group agreed to sell 37 tenanted pubs, which is equal to about a fifth of its tenanted estate, to Admiral Taverns for £18.3m, which Barrett said is ‘£500,000 per pub and a £1.6m premium to book value’.
He said that this premium if applied to the September 2023 balance sheet ‘would now give close to £14 per share of adjusted book value, slightly higher than previously disclosed owing to the repurchase of the equity base since 2022’.
Overall, Barrett said the ‘non-core pub disposal demonstrates value’ in the group.
I'll drink to that! |
Buyback taking long time, seems not many shares available to buy, so can't be much downside. Expecting good result 31/3, & with Mad Hatter sale to come, £20m July, will save on interest charges. Should be a big beneficiary from falling energy prices & interest rates. Looks good value at half NAV, when pubs valued at market value. |
Back in to a more reasonable buy range - even nice nearer £5, which may not happen. |
Ok, thanks. |
EI. My understanding does not go beyond basic here but the RNS said "The Company intends to cancel the purchased shares".
Authorisation for the buybacks has been given at the last five+ AGMs. |
Darrin, that may be to satisfy employee share based options?.
I thought the point you made previously on the scale of these was
a really good one.
Tbf it's great for staff and fair does to TW in this respect. |
EI Did you notice JDW have started a share buyback. |
Questor put pay to my hope of buying a few lower down!. A better few days for WTB. |
Darrin, out of YNGN and into WTB - no other sector holdings ATM.
Will WTB crack the German market with Premier Inn is the big unknown. |
EI. Have you any pub shares at the moment? |
Under £6 will be back in. |
The Telegraph is being a bit disingenuous. The £200m includes the special dividend from the brewery sale.
Revenues are up because prices are up.
City Pub group has just been sold at £10m below NAV.
On the positive side:
"Directors’ valuation of the total property portfolio in May 2022 at £995.6 million,
approximately £400 million above our current book value – giving implied adjusted
net asset value per share of £14.07" |
 From the Telegraph today:
A rally of more than 40pc from the year’s low in April helps to justify this column’s patience with pubs-to-hotels group Fuller, Smith & Turner and any further improvement in trading could (finally) take us into the black on this position, first taken two years ago.
Working from home, train strikes and input cost inflation may have crimped the pace of the post-lockdown recovery but Fuller’s well-tended estate in London and the south of England is showing strong footfall despite some very variable weather.
First-half results published last week for the six months to September showed double-digit percentage increases in revenues from food, drink and accommodation. Profits rose sharply, cash flow was good and the company increased its interim dividend by 42pc, adding a new share buyback programme as it did so.
And the buyback is one of those that genuinely make financial sense, because the shares continue to trade a long way below net asset value. The company’s £386m market value compares with equity or net assets of £442m, and that latter figure is based on property valuations that date back more than two decades in many cases.
An indication of the value that lies within Fuller, Smith & Turner comes from the £17m profit that the company will book on the sale of a property in Southwark, London, for £20m when the deal closes next year.
Risks remain, especially from further train strikes, sticky inflation or “higher for longer” interest rates, which drain away consumers’ confidence and cash. But even then the valuation and strong balance sheet offer protection.
In the meantime, the dividends and buybacks mean investors are gaining some reward for their patience.
It is worth bearing in mind that by the time Fuller Smith & Turner completes the new buyback and pays its final dividend for fiscal 2024 next summer it will have returned some £200m in cash to shareholders over a decade, no mean sum relative to the current market value.
Fuller Smith & Turner still looks very cheap. Hold. |
Yes;better than expected.Worthwile divi increase.Still good value..... |
Great Result, caught market off guard all up profit, Cashflow, Dividend, debt down. Mad hatter sale to come I believe. Great to see price rises sticking, charge £129 for a hotel room might have a pint on way home to celebrate!. |
Rimmy
You are missing my point, I have spent £1000 of pounds there over the years.
Customer service is very poor in the Fullers pubs |
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