Gales acquisition boosts Fuller's profits
London brewer and pub operator Fuller Smith & Turner's purchase of rival beer and pub group Gales last year has fuelled a sharp increase in first-half profits.
The London Pride brewer said pre-tax profit for the six months to 30 September climbed 31% to £10.9m, with turnover up 35% to £91.1m.
Growth was driven by the £91.8m purchase of Hampshire's Gales, which added 111 extra pubs to Fuller's existing 251-strong portfolio and helped increase profits at Fuller's Inns by 65% to £13.8m.
The brewing side of the company also benefited from the purchase, with profit up 14% to £4.2m and beer sales rising 22%. Like-for-like sales before the Gales' acquisition rose by 4.3%.
"The Gales trading pattern provides a summer balance to our previously winter-weighted business and we anticipate achieving further good results from the combined estate in the second half of the year," said chairman Anthony Fuller.
Fuller's forecast the second half of the year would see more measured growth, but noted it is well-placed to continue its performance. It added that it expected to invest in new pubs during the period, adding to the five acquisitions already due for completion.
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Gales integration cuts profits at Fuller's By Kerstin Kühn
