Fuller's: no rent concessions

Fuller's tenants will not be getting rent concessions despite a 1% decrease in average revenue per pub and 1.9% dip in like-for-like sales.

The London-based brewer and operator said it preferred other options to rent concessions.

"We remain committed to our tenants and lessees and are determined to support them through these difficult times," said chairman Michael Turner. "However, we do not believe that offering rent concessions is the best way to do this. We prefer to work collaboratively, helping them improve the performance of their business.

"We actively contribute towards marketing activities in pubs and provide training for all aspects of the business, in particular, helping them expand their food offering. We have further enhanced our tenants' drinks portfolio and continue to invest in our pubs where expansion opportunities exist.

"Our tenanted business has delivered a robust performance during the period, with revenues and profits level."

Overall Fuller's posted a 6% drop in pre-tax profit to £12m for the 26 weeks to 27 September 2008, down from £12.7m last year. The group saw revenue up 1% to £94.4m for the first half and ebitda remained broadly in line with last year at £20.9m.

The company's managed pubs and hotels posted a 2.3% increase in invested like-for-like sales, while profits dropped 4% as a result of increased utility costs. Fuller's Inn's operating profits fell 2% to £13m, down from £13.3m in 2007.

Fuller's beer company saw operating profits decrease 3% to £3.4m, with UK own beer volumes declining 2%, although the group said that it continued to grow market share overall in a falling beer market.

Turner added: "The collapse of confidence in the world's banking system has meant that the outlook for the nation's economy does not look good. 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."