Fuller's shrugs off bad weather, new acquisitions see profits rise

Total tenanted pub profits were boosted by the acquisition of 17 venues last year, most of which it bought from its bigger rival Enterprise Inns. However, any hopes of an Olympic sales for the group  boost seem to have been quashed - organic sales at pubs that the group itself manages rose by 1.6 per cent.

With two pubs acquired for in the six-month period to 29 September and a further two since the half-year end, like-for-like sales across the Fuller’s estate of managed pubs and hotels are up by 1.6 per cent – despite an unprecedented number of non-trading weeks due to redevelopments.

“Despite what has been an extraordinary six months, I am pleased to announce a strong set of results,” said Fuller’s chairman Michael Turner. “This was driven by a very encouraging performance from the exciting acquisitions we have made over the past year and a half.

Wet summer​

“Managed pubs and hotels, our largest division, has delivered a robust performance against the backdrop of a unique combination of events in London and the wettest summer in 100 years. The 13 managed pubs purchased last year have seen considerable focus and investment in this period and their performance in recent months has been particularly encouraging.

“There is gathering momentum as these pubs climb towards their full trading potential.”

Although total beer volumes across the estate are marginally up (one per cent), profits are down seven per cent, due to an increased depreciation from last year’s investment in conditioning tanks.

Long-term strategy​

In the 52 weeks to 31 March Fuller, Smith & Turner reported revenue growth of 5 per cent which contributed to a rise in adjusted pre-tax profits in the period to more than £30m. Turner believes the six months that have followed have given the business the fillip needed to emulate those results.

“Whilst the economic outlook remains uncertain, we are confident that the business is well placed for the future, with a healthy balance sheet and a successful long-term strategy,” he said. “The 2012 London Olympic Games showcased our vibrant capital city and generated fantastic goodwill and publicity around the world.

“We have no doubt that Fuller’s historic London heritage and iconic brands will receive an enduring boost for many years to come from this unique summer.”

Other Fuller's news​

• Fuller’s also this week announced the release of a new limited edition ale, Traitors’ Gate, which is available in limited supply in 54 pubs across the Fuller’s estate along with some in the free trade.
• The business also announced the winner of its annual Pub of the Year competition, held at the Griffin Brewery in Chiswick earlier this month. is The Queen’s Head in Chesham, Buckinghamshire was the winner of The Griffin Trophy.