Fuller's takes pride
Sound financial results at Fuller's underpin new pub acquisitions.
The Chiswick-based brewer has confirmed the acquisition of a further two pubs following the four recently purchased from Mitchells & Butlers and says it is aiming for more.
At the company's interim results presentation for the six months to September 25, chief executive Michael Turner said this meant Fuller's was on target to increase its estate by up to ten pubs this year. The brewer and pub operator would also continue "to seek to expand its existing trading estate either through purchasing pub-by-pub, or by considering small chunks and possibly bigger groups, so long as the quality was right".
"We have a long term focus driven by a culture of quality not fashion," said Mr Turner. "It is becoming more difficult to find suitable properties to buy, but there are still opportunities about."
His words were backed by results showing steady growth for Fuller's, with turnover up 2 per cent to £73m and pre-tax profit up 7 per cent to £8.7m.
"Our business is capital-rich and low-geared, so we can take full advantage when the right opportunities become available," said Mr Turner.
Other highlights of the results included strong performance at Fuller's Beer Company division, where a one per cent increase in volume returned an eight per cent increase in profits, and a 6 per cent increase in turnover in the Hotels arm delivering a 14 per boost to profits.
Strong backing for London Pride, a revamped ESB and the growth in the lighter Honeydew ale all contributed to beer growth, with off-trade sales and expanding markets in Scandinavia and Italy also contributing to sales.
John Roberts, beer and brands director said of the Beer Company results and the continued dominance of Pride as the UK's best-selling premium ale: "We have achieved this not by outspending our competitors but by outsmarting them."
An almost £5m investment in repairs and refurbishments held back profits in the managed estate, though the tenanted estate traded well.
Finance director Paul Clarke told The Publican: "We are fashionably unfashionable and stick too what we know well. This is the reason why regional brewers like us, Shepherd Neame and Adnams are doing well."
