Fuller’s “well placed” to deal with UK recession

Fuller Smith & Turner has said it is well prepared to deal with a UK recession, as it revealed sales at its pubs had ground to a halt in the first six months of the year.

Describing its performance as “resilient”, the brewer and pub operator said owning the majority of its pubs’ freeholds and a reduction in company debt of £5.4m to £90.1m, meant it was well placed to deal with the fallout from plummeting consumer confidence.

Although the group’s 152 managed pubs and hotels saw like-for-like sales growth of 2.3% for the period, operating profit fell 2% to £13m, in part due to increased utility costs.

The company’s 204 leased or tenanted pubs had a tougher time, with a fall in like-for-like-sales of 1.9% and turnover and profits flat.

Despite this the company said it would not be adopting the strategy of some of its larger rivals of offering rent concessions, preferring instead to work with tenants to improve the performance of their businesses.

Fuller’s chairman Michael Turner said: “Our performance has been resilient in what has been a challenging period for the industry.

“We believe we have the business model and financial strength to cope well with a downturn, can improve our relative market position and are well placed to capitalise on the opportunities that may arise.” 

Overall, turnover in the in the 26 weeks ended 27 September fell 1% to £94.4m (2007: £93.3m) with adjusted pre-tax profit down 1% to £12m (2007: £12.7m). 

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By Chris Druce

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