Fuller's sizing up rival family brewers

Fuller & Co aims to fuel expansion by courting rival family brewers with shareholders looking to cash in their assets.

Speaking as the London-based brewer announced half year pre-tax profits up nearly a third - buoyed by last year's acquisition of George Gale & Co - Michael Turner, Fuller's chief executive, said that while asset prices had reached "heady levels" he would always look at "the right opportunity".

Turner said he was particularly in the market for a family-run business that wanted to sell to a like-minded company intent on keeping its ethos intact.

He declined to comment on whether Fuller's had been interested in buying Henley-Upon-Thames' pub operator Brakspears, which was recently bought by JT Davies, but said it was the sort of deal he had in mind.

Turner also suggested any expansion would be confined to the company's existing distribution reach, anywhere below the M4 to the south coast.

"It would have to be in a sensible area for us. The business can expand in its heartland. It's important that we do what we are already good at well."

Paul Clarke, finance director said current debt levels within the company, including the £100m loan used for the acquisition of Gales, were within acceptable levels and would not stop further purchases. Indeed more debt might be taken on for the right deal, he added.

Commenting on the impending smoking ban, Simon Emeny, managing director of Fuller's Inns revealed the company had planned to spend £3m to £4m preparing its estate, and the group didn't have any problem pubs that would be sold as a result of the ban.

Emeny also said the Licensing Act, a year old today, had had little effect on the group's overall results, rather increases in turnover were down to "our pubs performing well".

Talking about competition from the recently formed Wells & Young's brewing concern, John Roberts, managing director of Fuller's Beer Company, said the Bedford-based group was "enthusiastic over pricing" and that he hoped W&C would invest in the market.

Asked what the impact on Fuller's would be if they did not, Roberts said: "We operate in a very different market sector."