Fuller's cushioned by south-east base

19th Nov 2010 07:35

London-based pub group and brewer Fuller's shrugged off the economic gloom with progress in all divisions but especially its hotels and managed pubs arm over the past six months.Profits in the half year to September rose by 11% to £16.8m, on sales up 4% at £121.5m. The dividend rises by 6% to 4.75p.Managed Pubs and Hotels, the largest part of Fuller's business, saw a 3.3% increase in like-for-like sales and 8% profits hike. Tenanted Inns' like for like profits increased by 1%, while brewing arm Fuller's Beer Company's total beer volumes grew by 1%."We continue to make good progress and like for like sales in our Managed Pubs and Hotels grew by 3.5% for the 33 weeks to 13 November 2010," chairman Michael Turner said, adding he expects to spend a total of £12m on capital projects excluding pub acquisitions."Our first half performance has again been boosted by low interest rates and our borrowing costs will rise in the second half. In January VAT will increase to 20% and we expect that, with the announced Government spending cuts, the economic climate is likely to remain challenging for some considerable time," he added. "Nevertheless, we expect the spending cuts to impact the South of England less than other parts of the UK and we are confident that with our strong brands and high quality, well invested estate, we are well placed for further growth."