Proactive Investors - Fuller Smith & Turner PLC (LON:FSTA), the brewing company, will hope that a strong fourth quarter can edge profits closer to pre-pandemic levels when it reports its full-year financials on Thursday.
When the pub group issued a profit warning in January, sales lagged 2019 figures by 3%, but performance at the start of the second half appeared to be improving.
Central London’s recovery, a reduction in rail strikes and some brighter weather may have helped operations between February and April 2023.
In the English capital, where Fuller’s has “above average exposure”, year-on-year sales growth reached 32%, according to experts at Peel Hunt.
“As a consequence of the strong end to the year, 2023 profit before tax (PBT) should be ahead of our forecast,” said Douglas Jack, equity analyst at the investment bank.
Peel Hunt initially estimated underlying profits to come in at £11.2mln, with consensus slightly higher at £13.1mln.
In 2019, PBT came in £33mln.
Jack added: “Falling wholesale energy costs should also help PBT recover… gas and electricity costs were £6.3mln in 2019 and were expected to be £15.3mln in 2023.
Around 35% of electricity and 50% of gas is hedged until 2024, the broker added.
Peel Hunt rates the brewer as a ‘buy’ and targets a 600p share price, the stock opened on Wednesday at 530p.