Shares in Fuller, Smith & Turner were up six per cent after the pub owner and brewer reported a rise in pre-tax profit of 17 per cent in the full year ended 27 March.
The group, which owns beer brands such as London Pride, said that its revenue increased eight per cent in the period to £227.7 million. Adjusted pre-tax profit increased 17 per cent to £26.6 million.
Fuller said that it would be increasing its total annual dividend by 12 per cent to 11.00 pence per share.
Like for like sales at Fuller's managed pubs and hotels increased 2.7 per cent, while beer volumes were up two per cent. The group said that it had acquired eight managed pubs and one tenanted inn for £30.2 million during the year.
Michael Turner, Chairman of Fuller's, said, "I am delighted to report another record set of results for our business in what has been a challenging period for the economy and our industry.
"We have made a solid start to the new financial year with like for like sales in our Managed Pubs and Hotels growing by 3.5% for the ten weeks to 5 June 2010. For the same period Own Beer volumes are level with last year, with weakness in the UK On Trade market offset by continued growth elsewhere, particularly exports.
"With the UK national debt so large and measures to tackle this through tax rises and public spending cuts now being implemented by the new Government we continue to be very cautious about the outlook for the UK economy. We may technically have emerged from recession and the economy may no longer be contracting, however, with the prospect of personal taxation in our target market rising further and disposable incomes reducing there may be less leisure spend available in real terms. Despite these challenges we consider that we continue to be well placed to compete with a strong balance sheet, excellent brands, and well invested pubs that serve outstanding cask ale and delicious food."
By 10:03 shares in Fuller's were up 7.34 per cent to 585.00 pence per share.