Fuller's reports very strong first half-year

London brewer and retailer Fuller's has reported a jump in profit before tax of 18% to £14.1m in its first financial half year.

Turnover was up 10% to £116.9m. Like-for-like sales within its managed pubs was up 2.8%. Profit within the managed division increased by 20%, including contribution from 11 pubs acquired in the past 12 months.

The tenanted division saw profits down 3%. Its own beer volumes were up 3% with the beer company division boosting profits by 15%.  

Commenting on the results, Michael Turner, chairman of Fuller's, said: "I am pleased to report a very strong set of results for the first half of our financial year in what has been another challenging period for the industry. In defiance of the recession, we have grown profits through an excellent performance of the core business, further boosted by the incremental contribution of acquired pubs together with reduced costs of borrowing.

"Our Managed Pubs and Hotels, the largest part of our business, achieved a 2.8% increase in like for like sales, with good weather in the South East of England meaning our rural pubs enjoyed better trading conditions than in the last two summers.

"Our first half performance has defied the recession but it has been boosted by factors that may not repeat or may even reverse: incremental earnings from acquisitions, record low interest rates, a pay freeze and better weather.

"We remain cautious about the outlook for the UK economy and we expect our second half to be significantly tougher than the first. Starting with VAT rising by 2.5% on 1 January 2010, taxes and interest rates must rise and the economic climate is likely to remain challenging for some considerable time.

"We are well placed to meet these challenges ahead with strong brands, well-controlled costs and delightful, well-invested, pubs that serve outstanding cask ale and delicious food."