Gales integration cuts profits at Fuller's

Pub company Fuller, Smith & Turner has reported pre-tax profits of £15.3m for the last tax year, a fall of 13% compared with 2004/2005.

The company attributed the fall to the costs incurred by the integration of George Gale and Company into the business, following its purchase in December 2005.

Together with other acquisitions made during the last financial year, the Gales deal increased the company's pub retail estate by nearly half, something Fuller's chairman Anthony Fuller is confident will result in a strong financial performance for the group in the coming year.

Fuller said: "The significantly larger estate will bring with it the benefits of economics of scale and, because of our retail structure, it also give us more opportunity to maximise returns, where appropriate, by transferring pubs between the managed and tenanted estates."

He added that the expansion also presented an excellent opportunity to expand its free trade and wine division.

Group turnover was up 12% to £145.1m, with significant contributions from the Fullers Beer Company, which achieved a profit increase of 6% to £8.7m.

Fullers Inns also performed well, with adjusted profits up 21% to £19.1m. The company also reported a good year for its Fullers Hotels division, with trading profits up by 8%, and an average room rate rise of 3% to £70.56.

By Matthew Batham

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