Pub and hotel group Fuller's has become the latest victim of City job cuts and a slowing economy.

The Chiswick-based brewer, maker of London Pride beer, said sales in its City pubs had fallen because of redundancies while its more rural "English Inns" chain was enjoying "encouraging" sales.

Nonetheless, the company compounded investors' nerves with news that sales in the past six weeks had been "disappointing"

Chairman Anthony Fuller said: "It is important to note that the difficult conditions being experienced in certain sections of our market have yet to reverse and may not do so for some time."

Brewing up profits

Despite the unsettled conditions, Fuller's - or Fuller, Smith and Turner to use its full name - said it was confident of reporting "reasonable growth" this year.

The company's outlets include the 'Fine Line' high street bars, the 'Ale & Pie' pub chain and over 200 unbranded pubs in the UK.

In the six months to 28 September, the group reported a 20% rise in profits to �7.7m and increased its dividend payment to shareholders by 6% to 4.75p per share.

The company said it was still to early to say whether the disappointing sales in the last few weeks were the result of poor weather or, more worryingly, a sign of further weakening trend.

Earlier this week, pub and brewing group Young's also warned that job cuts in the City were affecting trading.

Booked-in

Fuller's hotel division benefited from last year's refurbishments, with profits up 150%.

The average revenue generated per room was up 11% to �45.

The group is continuing to add hotels to its pub chain, with work starting in the new year on adding rooms to its Red Lion pub in Hillingdon.