Fuller's

[Leither]

As I gradually shift my investments from sort-of-HYP shares to ITs, ETFs etc, one of the shares I will probably continue to hold is Fuller's, a very well run, largely still by the families, company. Good results today -

Half year results for the 26 weeks ended 30 September 2017

A good performance against strong headwinds

Financial Highlights

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

· Adjusted earnings per share 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

https://www.investegate.co.uk/fuller-sm ... er%20Alert

Shares up 3% today.

Regards,

Leither.

[moorfield]

As I gradually shift my investments from sort-of-HYP shares to ITs, ETFs etc, one of the shares I will probably continue to hold is Fuller's, a very well run, largely still by the families, company.

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

But FSTA currently yields just 2.0%, why continue to hold at all if you are already shifting investments and can buy more income from ITs like CTY (City of London) which yields 3.9% ?

[Julian]

But FSTA currently yields just 2.0%, why continue to hold at all if you are already shifting investments and can buy more income from ITs like CTY (City of London) which yields 3.9% ?

The Fullers yield depends on how much beer you drink in Fuller's pubs.

If you hold over 500 shares (about £4,850 for 501 shares at the current price) you get a 10% discount on any purchase - no need to have food with it or a minimum order. To add 1.9% to the yield to match CTY you need to get ~£92 of beer savings from your investments each year on top of the dividend which means buying ~£920 of beer at the full price. At about £4 a pint that's 230 pints a year or about 4.5 pints a week.

Hmmm. I'd mostly typed the above as a joke because I thought the number of pints was going to come out at a ridiculously high number but that probably is roughly my beer consumption each week if not slightly less than my consumption and a couple of my locals that I go to a fair amount are both Fuller's pubs. It's also worth noting (before Gengulphus does ) that the savings component of the yield is tax free whereas if that "missing" £92 p.a. had been made up via a higher dividend it would potentially be taxable if not tax-sheltered either by SIPP/ISA or by falling within personal or dividend allowances.

This has got me thinking....

- Julian (not currently holding Fullers shares)

[Leither]

But FSTA currently yields just 2.0%, why continue to hold at all if you are already shifting investments and can buy more income from ITs like CTY (City of London) which yields 3.9% ?

The Fullers yield depends on how much beer you drink in Fuller's pubs.

If you hold over 500 shares (about £4,850 for 501 shares at the current price) you get a 10% discount on any purchase - no need to have food with it or a minimum order. To add 1.9% to the yield to match CTY you need to get ~£92 of beer savings from your investments each year on top of the dividend which means buying ~£920 of beer at the full price. At about £4 a pint that's 230 pints a year or about 4.5 pints a week.

Julian, I forgot to mention that in my OP. Actually it's 15%, not 10%, and I've made full use of it. It's 10% in their hotels which I haven't made use of yet. Apart from my periodic visit to Fuller's pubs (living near London), we have an ex-colleagues annual reunion in a Fuller's pub, up to 30 of us, all afternoon. The discount on that is astonishing! Plus there's the AGM held in the brewery which is a convivial affair. Plus I just like Fuller's as a company - pubs & the brewery are always well run, neat & tidy, and when they aren't, if you make a complaint, management does take notice and sorts things out.

As regards the yield and CTY: I'm not too fussed about the yield, I've got a good pension, but indeed CTY is one of the ITs on my list.

Cheers to all,

Leither.

[Julian]

Julian, I forgot to mention that in my OP. Actually it's 15%, not 10%, and I've made full use of it. It's 10% in their hotels which I haven't made use of yet. Apart from my periodic visit to Fuller's pubs (living near London), we have an ex-colleagues annual reunion in a Fuller's pub, up to 30 of us, all afternoon. The discount on that is astonishing! Plus there's the AGM held in the brewery which is a convivial affair. Plus I just like Fuller's as a company - pubs & the brewery are always well run, neat & tidy, and when they aren't, if you make a complaint, management does take notice and sorts things out.

As regards the yield and CTY: I'm not too fussed about the yield, I've got a good pension, but indeed CTY is one of the ITs on my list.

Cheers to all,

Leither.

Wow. Thanks for the correction re 15% in pubs. Even more tempting now.

- Julian

[Gengulphus]

The Fullers yield depends on how much beer you drink in Fuller's pubs.

If you hold over 500 shares (about £4,850 for 501 shares at the current price) you get a 10% discount on any purchase - no need to have food with it or a minimum order. To add 1.9% to the yield to match CTY you need to get ~£92 of beer savings from your investments each year on top of the dividend which means buying ~£920 of beer at the full price. At about £4 a pint that's 230 pints a year or about 4.5 pints a week.

Hmmm. I'd mostly typed the above as a joke because I thought the number of pints was going to come out at a ridiculously high number but that probably is roughly my beer consumption each week if not slightly less than my consumption and a couple of my locals that I go to a fair amount are both Fuller's pubs. It's also worth noting (before Gengulphus does ) that the savings component of the yield is tax free whereas if that "missing" £92 p.a. had been made up via a higher dividend it would potentially be taxable if not tax-sheltered either by SIPP/ISA or by falling within personal or dividend allowances.

This has got me thinking....

... that it might be rather hard to reinvest that extra 1.9% within the SIPP/ISA? ;-)

Gengulphus

[Gengulphus]

... or that sadly for many of us, the extra 1.9% is not available in most parts of the country? And I'm not talking just about remote areas - unless https://www.fullers.co.uk/pubs/pub-finder is missing some Fullers pubs, there are none closer than about 30 miles to Cambridge. So no 'local' that I could pop into regularly... :-(

Gengulphus

[PinkDalek]

... or that sadly for many of us, the extra 1.9% is not available in most parts of the country? And I'm not talking just about remote areas - unless https://www.fullers.co.uk/pubs/pub-finder is missing some Fullers pubs, there are none closer than about 30 miles to Cambridge. So no 'local' that I could pop into regularly... :-(

Gengulphus

Here’s one which still exists and used to be “a part of Cambridge”:

http://www.yeoldemitreholborn.co.uk/about

Worth the journey but the yield would depend on your orders being filled, filled and filled again.

Regularly is a different matter!

[Lootman]

If you hold over 500 shares (about £4,850 for 501 shares at the current price) you get a 10% discount on any purchase - no need to have food with it or a minimum order. To add 1.9% to the yield to match CTY you need to get ~£92 of beer savings from your investments each year on top of the dividend which means buying ~£920 of beer at the full price. At about £4 a pint that's 230 pints a year or about 4.5 pints a week.

I've never been sent a Fullers "Inndulgence" discount card despite having held more than 500 Fullers shares for years now. Might this be because I hold them in a nominee account, and have to do something extra to get it?

I don't visit Fullers pubs a whole lot, but I hate missing out on anything. I really haven't been diligent about claiming perks I am due on any share I own.

[PinkDalek]

I've never been sent a Fullers "Inndulgence" discount card despite having held more than 500 Fullers shares for years now. Might this be because I hold them in a nominee account, and have to do something extra to get it?

I don't visit Fullers pubs a whole lot, but I hate missing out on anything. I really haven't been diligent about claiming perks I am due on any share I own.

Me neither but I think these things might depend on the company itself and the outfit that holds your nominee shares. I've seen others mention they get their M&S discounts despite also holding in a nominee account.

From your mention of "Inndulgence" you may have already been here (first item) https://www.fullers.co.uk/corporate/investors/faqs but a call or email to the places concerned may clarify matters for you. They do say the card is sent to "their registered address" which doesn't, at first glance, look promising.

More generally, Hargreaves Lansdown maintain a shareholder perks list. You'll note they support the Fuller, Smith & Turner PLC "Perks":

http://www.hl.co.uk/shares/shareholder-perks

Extract The information contained is believed to be correct as of February 2016 for investors holding shares in a Hargreaves Lansdown Vantage Account, with the exception of BT Group perks which are not available to shareholders in a nominee.

I'm not a shareholder but have signed up to our local's emails, and occasionally get offered a free pint (we end up going for a session rather just the one). At the foot here https://www.fullers.co.uk/contact-us you'll see

DON'T MISS OUR OFFERS AND EVENTS
Want special offers from Fuller's? Be the first to hear.

Entering your postcode etc may result in the emails I mention.

[Leither]

If you hold over 500 shares (about £4,850 for 501 shares at the current price) you get a 10% discount on any purchase - no need to have food with it or a minimum order. To add 1.9% to the yield to match CTY you need to get ~£92 of beer savings from your investments each year on top of the dividend which means buying ~£920 of beer at the full price. At about £4 a pint that's 230 pints a year or about 4.5 pints a week.

I've never been sent a Fullers "Inndulgence" discount card despite having held more than 500 Fullers shares for years now. Might this be because I hold them in a nominee account, and have to do something extra to get it?

I don't visit Fullers pubs a whole lot, but I hate missing out on anything. I really haven't been diligent about claiming perks I am due on any share I own.

Just contact Fuller’s investor relations and they’ll then ask you to send evidence of your shareholding. Easy peasy.

Regards,

Leither.

[Davidsb]

Selftrade (and all their previous incarnations) do not support shareholder benefits for holdings in nominee accounts.

My Greene King and Marston's discounts are obtained courtesy of my iWeb ISA holdings.

HTH.

[Leither]

Selftrade (and all their previous incarnations) do not support shareholder benefits for holdings in nominee accounts.

My Greene King and Marston's discounts are obtained courtesy of my iWeb ISA holdings.

HTH.

In the case of Fuller’s, it doesn’t matter who your nominee is, you just send Fuller’s evidence of your holding.

Cheers,

Leither.

[PinkDalek]

May once have been an HYP candidate (I've absolutely no idea and found this Topic here on HYP) but I haven't found anyone mention the following anywhere on TLF. Extraordinary General Meeting set for 24 April 2019 and Expected date of Completion (subject to the conditions being satisfied or waived) 27 April 2019.

Further detail below (from late March 2019 but announced on 25 January 2019, thus the spike that day):

Proposed Disposal of the Fuller’s Beer Business
Circular to Shareholders and Notice of Extraordinary General Meeting

https://www.fullers.co.uk/-/media/sites ... .pdf?la=en

Extract only:

After adjustment for estimated transaction, Reorganisation and separation costs, the net cash proceeds from the Disposal are expected to be approximately £205 million (the ‘‘Net Cash Proceeds’’). The Company expects to return a total amount between £55 million and £69 million of the Net Cash Proceeds to Ordinary Shareholders representing £1.00 to £1.25 per A and C Ordinary Share and £0.10 to £0.125 per B Ordinary Share. The Board also intends to use some of the Net Cash Proceeds to make a contribution to the Pension Scheme, and has initiated discussions with the trustees of the Pension Scheme regarding the proposed return of proceeds. All remaining funds will be used to grow and further develop the Fuller’s pubs and hotels business.

and later

The Board will evaluate the amount and optimal way to return the Net Cash Proceeds to Ordinary Shareholders.

[PinkDalek]

May once have been an HYP candidate (I've absolutely no idea and found this Topic here on HYP) ...

Financial results for the 52 weeks ended 30 March 2019
https://www.londonstockexchange.com/exc ... 62243.html

There's nothing much new re Sale of the Fuller's Beer Business and the Chairman's Statement includes:

Evaluation of the best and most efficient way to return capital to shareholders is currently underway and the Board looks forward to updating the market in this regard in due course.

[PinkDalek]

May once have been an HYP candidate (I've absolutely no idea and found this Topic here on HYP) ...

Proposed Return of Capital to ordinary shareholders update ...

https://www.londonstockexchange.com/exc ... 13535.html

Travelling, so no time to extract, but looks like ***125p per A share, via a D share scheme, but fuller details to be provided in a circular.

*** Unless I've misinterpreted.

[PinkDalek]

Travelling, so no time to extract, but looks like ***125p per A share, via a D share scheme, but fuller details to be provided in a circular.

Alaric has commenced a Topic at Company Share news (LSE Main Market) confirming the Ex Repayment (XP) date today:

viewtopic.php?f=94&t=19765

[djbenedict]

Proceeds from the capital return were in my account this morning.