Companies: FSTA   

Pubs, hotels and brewing venture Fullers did well to buck a difficult market in the year to March, with pre-tax profits before exceptional items raised 10% to £16.4m on turnover up 4% to £137.6m. Net assets per ordinary share were raised 8% to 652p, leaving the shares on an attractive discount to net assets. Dividends totalled 16.1p. Chief executive Michael Turner puts the success 'down to our long-term view...we only invest in quality'. That will be news to those who remember the group's ill-fated venture into high street bars, but it nevertheless remains the case that Fullers is an impressive operation, incorporating managed and tenanted pubs, hotels and a brewery at Chiswick producing London Pride, ESB and a host of other award-winning ales. Sales have held up in the pubs despite a saturated market, while like-for-like sales in the hotels have actually risen 4%. Broker KBC Peel Hunt's analyst Paul Hickman says Buy at 510p, predicting £17.3m of pre-tax profits this year and 50.4p of earnings per share. Fullers has proved itself a quality operation and is continuing to invest in its estate when others have cut back. With the asset backing and continuing buybacks, the shares should be bought on any weakness.