Fuller’s to see energy bills rise by £10m

The group estimates its bill in the current year to be around £18m against a last year’s figure of £8m as the industry struggles with rising energy costs.

The calculation does not include any benefit from the government’s six-month support scheme, which Fuller’s says it has been unable to quantify how much it would benefit from, as details are yet to be published.

The pub company had forward purchase contracts in place earlier this year to cover 50% of its forecast annual gas and electricity requirements.

“We have made good progress implementing a number of initiatives, with more to follow, which reduce our energy usage and help mitigate these cost increases over the medium term,” the company said in a trading update.

“Businesses across the hospitality sector are experiencing unsustainable increases in energy costs,” says chief executive Simon Emeny.

“Despite having proactively purchased forward contracts to limit the impact on Fuller’s, we will see significant increases this year and do urge the Government to provide much needed clarity on its proposed support package so that we can plan accordingly.”

Fuller’s has reported like-for-like sales for the most recent 25 weeks of the year up 21% on the previous year and that total sales had risen 3% against pre-pandemic levels.

The pub group says that while sales continue to recover from the effects of the pandemic, it is conscious that consumers face increasingly challenging times ahead.

“We are looking forward to the forthcoming World Cup and our first restriction-free Christmas for three years,” adds Emeny.

“The future may present more obstacles to navigate, but Fuller’s is a long-term company with a clear vision and the people, properties, and financial fire power to deliver consistent returns in the long term.”

During the first half of the financial year, Fuller’s opened The Queen’s Arms at Heathrow Terminal Two. It is close to completion on two further sites.