E-Malt.com News article: 2724

UK: British brewer and pub chain Fuller, Smith & Turner posted a 3.0 % rise in full-year profits on May 28 and said it was encouraged by an upturn in London's financial district after three tough years for its City pubs. Fuller's 23 pubs in London's square mile, which make up 10 % of its total estate, had been hit by a downturn in investment banking, which left tens of thousands of City workers jobless since late 2000.

There have been recent signs that confidence is returning and employment is picking up again, Chief Executive Michael Turner told Reuters. At 1014 GMT shares in the maker of Britain's leading premium ale, London Pride, were up 1.5 percent at 640 pence. Pre-tax profit before exceptionals rose to 16.9 million pounds ($31.1 million) for the year to end-March on turnover up two percent at 140.3 million pounds.

A good performance in its beer-making division, with profits by up 14 percent and volumes by two percent for the year, was blighted by weak trading at its City pubs and its eight hotels. "Hotels are pretty cyclical; everyone in the hotel market is suffering," Turner said. There were signs of improvement in the second half, and the firm opened a new 55-room hotel in west London last week, he added.

He saw the company's biggest growth coming from beer and planned to extend the brewery floor space by 11 percent to cope with increased demand. Growth by acquisition is also an option, and the company will consider any opportunity that arises, Turner said. The brewer increased its dividend on its "A" shares by 7.0 percent to 12.21 pence, bringing the total for the year to 17.3p.


01 June, 2004