Fuller's defies recession with strong set of results

London Pride brewer and pub operator Fuller, Smith and Turner has reported strong results despite the recession.

The group reported an increase in interim pre-tax profit of 18% for the 26 weeks up to 26 September 2009 to £14.1m, compared with £12m in 2008. This figure excludes exceptional profits of £1m from disposals. Turnover grew by 10% to £116.9m, compared with 2008’s £106.4m.

Underlying profit (EBITDA) was up by 9% to £22.7m, compared to £20.9m in 2008, and adjusted earnings per share are up by 17% to 17.95p – they were 15.29p this time last year.

In terms of corporate progress, Fuller’s managed pubs and hotels reported a sales rise of 2.8%, which it says “reflects the strength of our premium offer”, while profits in these categories were up 20%, including contribution from 11 pubs acquired in the last year.

Commenting on the results, Fuller’s chairman Michael Turner said that the results showed the company was bucking the recession, but added that he expected the latter part of the year to be “tougher”. Fuller’s “remains cautious” about the future although Turner says it  is “well placed” to meet the challenging climate.

“I am pleased to report a very strong set of results for the first half of our financial year in what has been another challenging period for the industry. In defiance of the recession, we have grown profits through an excellent performance of the core business, further boosted by the incremental contribution of acquired pubs together with reduced costs of borrowing,” said Turner.

“Our first half performance has defied the recession but it has been boosted by factors that may not repeat or may even reverse: incremental earnings from acquisitions, record low interest rates, a pay freeze and better weather. We remain cautious about the outlook for the UK economy and we expect our second half to be significantly tougher than the first.”

Fuller's snaps up Punch pubs in £21.1m deal >>

Fuller’s holds steady in tough year >>

Fuller, Smith and Turner scoops eight best beer awards >>


By Rosie Birkett

E-mail your comments to Caterer News here.

If you have something to say on this story or anything else join the debate at Table Talk - Caterer's new networking forum. Go to www.caterersearch.com/tabletalk

Caterersearch.com jobs
Looking for a new job? Find your next pub job here with Caterersearch.com jobs