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0 UK pub group Fuller, Smith & Turner has issued a profit warning, blaming train strikes for reducing festive sales in its city centre venues.
The pub chain, which has an estate mainly concentrated in London and the south-east, said on Monday that industrial action since October had reduced sales by £4mn. Fuller’s said it now forecast full-year earnings to fall below market expectations.
Sales for the four-week Christmas and New Year period were up 38 per cent on the previous year when the hospitality industry was hobbled by the spread of the Omicron coronavirus variant. But the pub chain added that train strikes meant sales over the four weeks were 5 per cent lower than the same period in 2019.
“While ongoing strike action will dampen sales, demand from customers remains good and we are optimistic that 2023 will deliver further sales growth through a busy calendar of events, and as office workers and tourists continue to return to the capital,” said Simon Emeny, Fuller’s chief executive.
Fuller’s share price was down nearly 10 per cent to £4.46 in early morning trading in London. Last week, Revolution Bars Group had 20 per cent wiped from its stock market value after it issued a profit warning, saying rail strikes had hurt Christmas sales at its 90 venues.
Emeny said the “high inflation environment”, driven by a sharp rise in energy, labour and food and drink costs, was continuing to affect Fuller’s operating costs and margins.
Like-for-like sales at Fuller’s in the 43 weeks to January 21 were just 3 per cent down on the 2019-20 financial year.
