Key facts
- Fuller's CEO Simon Emeny expects a strong summer due to evening World Cup match times and increased domestic tourism.
- The pub chain reported a 5.7% rise in revenues to £398m and a 28% increase in adjusted profit before tax to £34.6m for the year ending March.
- The company has enhanced its garden areas to accommodate World Cup viewers.
- Fuller's property portfolio valuation increased to £991m, nearly £400m above its book value.
Fuller's, the pub and hotel chain, is anticipating a strong summer trading period, driven by the upcoming World Cup and a rise in domestic tourism. Chief executive Simon Emeny highlighted that the evening kick-off times for the tournament, co-hosted by the US, Canada, and Mexico, are expected to boost business without cannibalizing normal summer trading.
Emeny stated that advance bookings for the World Cup are robust, and the company has prepared its garden areas across its 337 establishments. He noted that previous World Cups with earlier kick-off times sometimes impacted regular summer sales, but the later times this year are seen as a positive for pubs. The company hopes for England to progress far in the tournament to maximize benefits.
In addition to the World Cup, Fuller's is experiencing a significant increase in staycations, as UK residents choose domestic holidays over international travel due to rising costs. Popular destinations include the Cotswolds, the New Forest, and London.
These positive outlooks follow strong financial results for the year ending March. Fuller's reported a 5.7% increase in revenues to £398m and a 28% rise in adjusted profit before tax to £34.6m. The company's share price saw an increase of up to 10% in early trading following the announcement.
Fuller's, which primarily operates in London and the south-east of England, noted that its customer base, largely comprising higher-income households earning over £75,000, continues to spend on leisure activities despite the cost of living increases. The company focuses on providing a premium food, drink, and accommodation experience to retain this customer segment.
Furthermore, the valuation of Fuller's property portfolio has been updated to £991m, representing a substantial increase of nearly £400m above its current book value. Analyst Dan Lane commented that this revaluation highlights the importance of the company's physical assets and suggests a potential shift in market perception towards valuing Fuller's as a high-quality hospitality operator.