LONDON (Alliance News) - Fuller, Smith & Turner PLC on Thursday said it has made a solid start to the new financial year, with sales growth in Managed Pubs & Hotels, but a weaker performance in the Tenanted & Brewing divisions.
The pub company and brewer said like-for-like sales in the Managed Pubs & Hotels business grew by 2.1% year-on-year in the 16 weeks ended July 16, but like-for-like profit in the Tenanted division fell by 2.% while total beer and cider volume in the Fuller's Beer Co declined by 5%.
Fuller's said it was experiencing "a more challenging environment" in the year so far.
Since the end of its last financial year, which ended on March 27, Fuller's has bought a riverside pub, The Gun, which is on the edge of Canary Wharf in London.
"This freehold pub has an excellent reputation for delicious fresh food, is one of London's
gems and is a fantastic addition to our managed estate," Fuller's said.
It also opened the first London site for The Stable in Whitechapel, with a second on Kew Bridge due to open before the end of July.
In addition, Fuller's has refurbished a number of its pubs and transferred one pub from Tenanted to Managed, while acquiring the virtual freehold of The Butcher's Hook & Cleaver in London's Smithfield.
"We have seen solid growth in our Managed Pubs business during the first part of the new financial year against tough comparatives from last year and despite some unseasonably poor summer weather and an uncertain economic and political environment," Chief Executive Simon Emeny said in a statement ahead of the company's annual general meeting on Thursday.
"Fuller's has always focused on building a business with genuine longevity and this ability to take a long-term view during short-term external pressures stands us in good stead. We have exciting plans in place and will continue to invest in our people, our premium brands and our pub estate," he added.
Fuller's will announce its results for the first half ending September 24 on November 18.
Shares in Fuller's were untraded on Thursday morning, last quoted at 987.00 pence.
By Karolina Kaminska; karolinakaminska@alliancenews.com @KarolinaAllNews
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Fuller Smith & Turner (FSTA)