(Reuters) -British pub chain Fuller, Smith & Turner said on Wednesday that its Christmas bookings were 16% ahead of year-ago levels, and reported a jump in half-year profit, supported by investments in its long-term strategy.
The group, which operates premium pubs and hotels across the UK, has been investing in its property portfolio to improve returns in hopes of offsetting costs, as consumers brace for higher taxes with the upcoming UK budget.
The firm’s adjusted pretax profit rose 28% to 22.5 million pounds ($30.2 million) for the six months ended September 27, while like-for-like sales for the 32 weeks to November 8 grew 4.6%.
The company’s shares rose 3% after the upbeat report, but analysts noted its “lightly nervous comment” on the uncertainties from the upcoming budget.
“I hope the Chancellor has heeded the arguments and proposals articulated by the hospitality sector to avoid further punitive financial measures but, more so, I am frustrated by the lack of a clear plan to deliver the growth the Chancellor claims to be seeking,” Executive Chairman Simon Emeny said in a statement.
The comments echoed warnings from rival JD Wetherspoon last week of a heavy blow to the industry if the government repeats last year’s mix of tax increases and higher wage costs in the budget.
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(Reporting by Unnamalai L in Bengaluru; Editing by Sherry Jacob-Phillips and Mrigank Dhaniwala)
