Fuller’s says tube and rail strikes have cost it £5million in turnover, but the London-focused pub chain’s profits are still up 76%
- Fuller’s revenue increased by a third to £336.6 million for the 53 weeks ended April 1
- The company said the strikes were “particularly damaging” to C. London stores
- Sales during the festive trading period were 5% lower than before the pandemic
Pub and hotel chain Fuller, Smith & Turner has estimated that it lost more than £5 million in turnover in the past financial year due to railway strikes.
Labor strikes by tube and train workers have led many commuters to work from home, which has had a “particularly adverse” impact on central London businesses, the group told investors on Thursday.
Fuller’s has previously blamed the strikes on disappointing sales during the crucial festive trading period, which fell 5 percent from pre-pandemic levels.
Difficulties: Even without Covid-related restrictions, Fuller’s said the trading environment was ‘very challenging’ due to major inflationary pressures
But total revenue rose by a third to £336.6 million for the 53 weeks ending April 1, thanks to the return of office workers and large numbers of international tourists.
The London-based company revealed that like-for-like revenues in its central London locations were up 40.1 percent, while they grew 17.5 percent in managed pubs and hotels.
Over the past two years, visitor numbers at the company’s sites have been hit hard by temporary closures, capacity restrictions and strict quarantine rules for inbound travelers.
But even without Covid-related restrictions, Fuller’s said the trading environment was “very challenging” due to major inflationary pressures.
The company has seen a £6.6 million increase in its overall utility bill, as well as a noticeable increase in food and drink costs.
Further cost increases resulted from the UK government raising the National Living Wage and the Bank of England raising interest rates on several successive occasions.
Nevertheless, Fuller’s said adjusted pre-tax profit was still up more than three quarters to £12.7m and has announced a 30 per cent increase in dividend per share.
During the first ten weeks of the new fiscal year, the group recorded a 13.9 percent increase in like-for-like sales.
Simon Emeny, CEO of Fuller’s, said: ‘I am more optimistic about the future than I was before the pandemic. While the well-documented inflation environment has been challenging, there are positive signs on the horizon.
“In addition, we always hope for a solution to the ongoing train strikes, so that we can further benefit from the increasing number of office workers and international tourists returning to the capital.”
Trade organization UKHospitality estimates that the rail strikes have cost the hospitality sector around £3.25bn since they began last year, including £1.5bn last December which coincided with the FIFA World Cup tournament in Qatar.
Fuller, Smith & Turner shares were up 1.1 per cent on Thursday morning to £5.56, meaning they are up about 14 per cent year-to-date this year.