Fuller's positive despite "challenging circumstances
Fuller Smith & Turner chairman Michael Turner said that despite challenging circumstances the group had delivered another good set of results in the year to March 29, 2008.
However he warned that business costs, particularly gas and electricity, would rise markedly during the coming year.
"In 2007/08 our gas and electricity costs alone increased by £0.6m. We have fixed prices for around half of our energy consumption but, at current market prices, we would see this cost to the business rise again by at least a further £1.2m in the coming 12 months," he said
Announcing the London brewer's annual results today, Turner said that an adjusted profit before tax figure of £23m, up four per cent, and turnover up two per cent to £181.1m "suggested that our underlying business continues to perform strongly, despite the many well-publicised factors creating tough conditions in our market".
Fuller's pub operation, Fuller's Inns, saw turnover rise marginally to £141.5m from £140.9m in 2007, while pre-exceptional operating profits dipped slightly to £23.9m.
Turner said this "matched the levels achieved last year despite the lost contribution from the hotels we sold in 2007".
The group's pubs witnessed a tougher second half, Turner said, "but despite this, we finished the year with invested like-for-like sales growth in [the newly combined] Managed Pubs and Hotels division of 3.6 per cent".
Food and accommodation remained "key drivers" in this part of the business, Turner said, with food sales up eight per cent, accounting for 27 per cent of turnover - versus 25 per cent in 2007 - while rooms represented seven per cent, down one percentage point after the sale of two sites. The brewer now had 494 rooms across the managed estate, Turner said.
Fuller's tenanted pubs saw revenues up two per cent, with average revenue per pub up 2.4 per cent. Like-for-like sales were up slightly at 0.3 per cent, with profits up four per cent.
Fuller's Beer Company saw a one per cent rise in pre-exceptional operating profits to £8m on turnover of £60.3m, up 3.6 per cent.
Own beer volumes rose four per cent, thanks to a seven per cent hike in off-trade sales and a 21 per cent rise in exports. The group said foreign beer volumes dipped four per cent.
On current trading, Fuller's said it had seen "a solid start" to the new financial year with invested like-for-like sales in its Managed Pubs and Hotels were up 2.4 per cent for the nine weeks to 31 May, 2008.
