Fuller's: we've ridden out recession well

London brewer and pub operator Fuller's claims it has ridden out the recession well but still remains cautious about the year ahead.

Fuller's said it had traded "strongly" in the 11 weeks to 30 January with record sales at its managed pubs and hotels in December and record volumes of beer sold.

Like-for-like sales at managed pubs up 2.6%, bringing the like for like sales growth for the full 44 weeks to 2.8%.

But like for like profits at its tenanted pubs are still trailing behind the managed division — 2% down for the 44 weeks.

Own beer volumes for the 18 weeks to 30 January 2010 grew 1%, with a 2% increase for the full 44 weeks.

Fuller's said the poor January weather had affected sales. "The severe weather in January has taken the gloss off these sales, although our staff's warm hospitality and determination to continue trading whenever at all possible has gained us new friends and customers," it said.

Since the half-year, Fuller's has acquired two pubs — the Railway in Kew and the Holly Bush in Hampstead, taking the total to 367 in its estate.

At the end of its third quarter (28 December), net debt stood at £108m. It expects capital expenditure for next year to be around £44m.

Its bank facility of £85m matures in November 2010 and the company has recently started a formal process to refinance.

Cautious​

"We are pleased with the level of interest that we have received to date and are confident of our ability to refinance these obligations on competitive terms," it said.

Fuller's also announced a second interim dividend of 5.35p per 40p share.

"We remain cautious about the UK economic outlook and the prospects for our customers for 2010 and beyond," it said. 

"With inflation set to increase and tax rises and spending cuts inevitable after the general election, we will have to compete even harder for our customers' business.

"This caution aside, we have ridden out this recession well and look set to exceed our previous expectations for our financial performance for the year to 27 March 2010."