Fuller, Smith & Turner Rises as Chairman Looks for Sunshine, England Win
Fuller, Smith & Turner Plc, the U.K. pub owner that makes London Pride ale, rose the most in more than a year after saying full-year profit more than doubled.
Net income climbed to 19.2 million pounds ($28.3 million), in the year ended March 27, from 8.9 million pounds a year earlier, the London-based company said in a statement today. The shares advanced as much as 8.6 percent in London trading, the most since January 2009.
Fuller’s own-brand beer volume grew 2 percent, and 1 percent in Britain, even as the U.K. market contracted by 5 percent, the company. Good weather this summer would probably benefit Fuller more than soccer’s World Cup, Executive Chairman Michael Turner said in a telephone interview.
“The ideal would be a really good summer and England winning the World Cup,” he said. “If they win the World Cup, that makes people much happier and more confident, and that effect could last a while.”
Tomorrow’s match alone between England and the U.S. national team is expected to generate an extra 35 million pounds in spending for U.K. pubs, according to a poll by the British Beer & Pub Association.
Turner said the company is seeking to buy more “quality” pubs. It added a net seven pubs over the year, giving it a total of 366, the company said.
“Really exceptional, quality pubs have become available in the downturn,” he said. “There’s fewer than there were a year ago, but some are still available.”
Fuller gained as much as 47 pence to 592 pence and traded at 580 pence as of 9:09 a.m. The shares have increased 15 percent this year, giving the company a market value of 327 million pounds.
Comparable sales in the company’s managed pubs and hotels grew 3.5 percent in the 10 weeks ended June 5, accelerating from 2.7 percent in the fiscal year, the company said.
“We increased our marketing budget by 10 percent, and your pound has been able to buy more advertising in the downturn,” Turner said.