Fuller's profit down in "challenging" conditions

By Matthew Scuffham

LONDON (Reuters) - Pubs operator and brewer Fuller, Smith & Turner (FSTA.L) reported a decline in underlying interim profit on Friday as trading conditions remained challenging.

Fuller's, which has 356 pubs in the UK, said adjusted pretax profit for the 26 weeks to September 27 fell by 1 percent to 12 million pounds. Revenue rose by 1 percent to 94.4 million pounds.

Chairman Michael Turner said the performance was "resilient in what has been a challenging period for the industry."

He said Fuller's 152 managed pubs had increased like-for-like sales by 2.3 percent, one of the highest reported increases in the industry as the company benefited from its positioning as a premium brand.

Turner said Fuller's had maintained the momentum of the first half in the first seven weeks of the second half although like-for-like sales growth had slowed to 1.8 percent.

"There's a fall-off but it's rather less than is being reported elsewhere," Turner told Reuters in an interview.

Yesterday, rival Young's said like-for-like sales had dropped by 3.3 percent since the beginning of October amid "extremely challenging" market conditions.

"The market is difficult, London is slowing and even the better operators are beginning to feel it," said Blue Oar Securities analyst Mark Brumby.