(Reuters) -Fuller Smith & Turner said on Thursday it plans to buy back up to 1 million ‘A’ shares, after the British pub group reported higher sales for the first 15 weeks, helped by more tourists frequenting key sites and people returning to offices.
Last month, the group increased its annual dividend by 30% as strong sales of cocktails and rosé wine supported a recovery from pandemic lows.
Given the strong start to the year and having declared total dividend, the board has decided to commence repurchase of shares, Fullers said in a statement.
Shares of the company were up 1.7% at 590 pence, as of 0736 GMT.
Like-for-like sales in the first 15 weeks ended July 15 of the current fiscal year were up 15.1% from a year earlier, the company said.
While cost inflation and the ongoing train and tube strikes present challenges, London’s continued recovery is driving strong sales momentum, Chief Executive Simon Emeny said.
The British hospitality sector has weathered rising costs as consumer spending remains healthy, but train and tube strikes have hit particularly hard in central London, where many of Fullers’ pubs are located.
(Reporting by Chandini Monnappa in Bengaluru; Editing by Subhranshu Sahu)
