Fuller’s has warned that the transition costs of selling its beer business to Asahi have been “materially higher” than expected and will have a short-term impact on the group’s financial performance.

Additional resources have been required for the “complex separation period”, while the migration to a new Enterprise resource planning (ERP) has not delivered anticipated benefits, Fuller’s said in a trading update.

The vast majority of central overheads for the brewing business have been retained by the company, which will continue until Transitional Services Agreement (TSA) agreement concludes by May 2020.

As a result, profit for the full year ending 28 March 2020 is forecast to be broadly in line with the prior year, resulting in adjusted profit before tax in the region of £31m.

Meanwhile, the pub operator reported like for like sales growth of 2.3% in its managed estate for the 32 weeks to 9 November 2019.

Total sales grew by 5.2% against strong comparatives for the corresponding period last year, albeit with some margin erosion due to industry wide cost pressures.

Fuller’s CEO Simon Emeny said: “This is a transitional year for the company following the sale of the brewing business and subsequent separation of a highly integrated business. There have been many moving parts to navigate and we have incurred some greater than anticipated costs as a result which have had a short term impact on our financial performance. Whilst we are taking the action to address these, the impact of this will not be felt in the current financial year.

“Trading is good in light of exceptionally strong comparatives last year and the continued challenge of cost inflation facing our sector. Our strategy remains on track and we will continue to execute our growth ambitions and maximise the opportunities open to us as a focused pubs and hotel business.”