Fuller's in the market for a deal

Young & Co may be the next target of rival London pubco Fuller's.

Fuller's would not comment today on whether it had Young & Co in its corporate sights, although it confirmed it was interested in buying a suitable business, particularly after the successful integration of its last major acquisition, that of Hampshire brewer Gales, which it bought some 18 months ago.

Announcing its annual results for the 12 months to March 31 today, Fuller's chief executive Michael Turner said his company was interested in doing the right deal "if people wanted to sell".

But he refused to comment on whether it had approached Young's, based in the nearby borough of Wandsworth, nor what the reaction from the south London brewer had been.

Simon Emeny, head of Fuller's pubs operation, agreed the group wanted to do a deal but he also refused to comment on a likely target.

Many observers believe acquiring Young's high quality London-based estate would be an ideal move for Fuller's, although management at the Wandsworth group has stressed in recent months it is not up for sale.

Another barrier to a potential move for Young's is the tied beer arrangement the pubco has with its brewing venture partner, Charles Wells.

Turner meanwhile said that prices for pubs had "gone through the roof" and admitted that "we should have bought a few years ago when we complaining about high prices".

On the question of real estate investment trusts, Turner said: "What we know so far is that they are inappropriate, although we are not ruling it out completely at this stage."

He also cast doubt on moves by some pubcos to persuade the taxman to include wet rent and AWP income as a basis for conversion.