Broker KBC Peel Hunt reckons London beer group heavy presence in the City of London will hurt its profits, as was the case in the last stock market slump in 2002.
Following this morning's interim results KBC has provisionally downgraded its full-year pre-tax profit estimate by 6% to £21.5m, while the earnings per share forecast has been trimmed to 27.4p.
For fiscal 2010 the broker is forecasting flat results, with the benefit of lower capital expenditure offset by cost increases and like-for-like sales declines, which KBC estimates will be in the region of 5%.
In comparing the company to its rival, Young & Co., KBC observes that Fuller's trading is more exposed to regional southern England and the City than Youngs.
"While therefore Fuller's also represents quality in the pubco sector and has a strong balance sheet that would be the envy of others, we prefer Young's for choice," analyst Paul Hickman said.
