The boss of the pubs company behind London Pride is predicting a boon to the city from this summer’s Olympic and Paralympic Games — in the future.
Fuller, Smith & Turner chairman Michael Turner says the pub trade took a hit from the Olympics as people stayed at home watching events.
But Fuller’s and other London-focused businesses will reap rewards for years to come, he argues.
“It marketed London brilliantly,” said Turner. “We are as well placed as anybody to benefit from that. But the biggest effect of all this will be in the future rather than this year.”
Tourists will be lured by what they saw on their TVs of the city and the games, he reckons.
“All around the world everyone thought we did it brilliantly,” said the Old Etonian, with some pride.
He was talking as Fuller’s unveiled decent half-year results despite the turmoil produced by the Games and by some terrible summer weather.
Revenues were up 8% to £138 million in the six months to September, with profits rising 4% to £17 million.
That allowed for a rise in the interim divi of 6% to 5.35p, enough to keep the founding families behind the company happy, hopes Turner.
He likes to point out that the dividend has risen 14,000% since the Queen first took the throne.
City analysts say Fuller’s is among the best placed of the pub companies due to its strong bias towards London.
Numis Securities said in a note: “As usual, the shares trade at a premium to the rest of the licensed retail sector, which is justified by Fuller’s low leverage, above-average track record and the high quality of its asset base.”
