Brewers bank on City recovery

BREWER Fuller, Smith and Turner, famous for its London Pride and ESB beers, said it is hoping for a turnaround in the fortunes of its City outlets.

The company suffered a 5% slide in sales at its pubs in the Square Mile, although food sales rose 11%. Profits on tenanted pubs across the group rose 5%.

Chairman Anthony Fuller said: 'We have seen an encouraging uplift in sales from our refurbished managed pubs and bars in the year and believe that we are now starting to emerge from a trading downturn in the City.'

Only yesterday, another London-based brewer and pub-owner said it was expecting a recovery in the capital. John Young, chairman of Wandsworth-based Young & Co, said: 'The City continues to show encouraging signs and is benefiting from more upbeat news on the state of the economy.'

However, at Fuller's half-year results in November Michael Turner, chief executive, was also looking forward to a recovery in the City. There was also no news on the company's search for a new portfolio of pubs.

Pre-tax profits rose 3% to £16.9m on a 2% lift in turnover to £140.3. for the year to end-March.

Proceeds from the disposal of properties meant bottom-line profits of the London-based group were even higher, up 13% to £19.2m.

In addition to its brewing operations, Fuller manages 116 pubs and has a tenanted division where 114 outlets are leased to landlords.

The company has upped the beer-making capacity of its Chiswick brewery by 25% to 260,000 barrels to meet growing demand for its London Pride. The company also said its eight hotels 'will be profit-generators this year'.

By midday, investors were toasting the results with the shares up 10p at 640p.

Yesterday, Young's said it was looking forward to its busiest year since the 1980s after clinching a brewing deal with Scottish Courage.

It said the contract to brew and keg Courage Best Bitter would boost its beer volumes by around 10% this year and support growth in its core brands.

The group posted a 4.7% hike in pre-tax profits to £9m for the last year and reported progress in establishing Young's Bitter as a national brand.

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