The World Cup is coming, and pub chain Fuller's is hoping for a bumper summer. With evening kick-off times, the chain is anticipating a double-hit of business, as fans flock to their garden-ready pubs and hotels. Simon Emeny, the chief executive of Fuller, Smith & Turner, is confident that the World Cup will boost their already strong results. He predicts a different World Cup compared to previous events, with later kick-off times potentially playing well to pubs. This is a welcome development, as previous kick-off times at 1pm, 3pm, and 5pm could cannibalise normal summer trading. The chain is also experiencing a rise in domestic tourism, with holidaymakers choosing staycations over foreign trips this year. This is a result of the extra cost of travelling abroad, and UK customers are opting for shorter trips to places like the Cotswolds and the New Forest. Fuller's reported strong results for the year to the end of March, with a 5.7% increase in revenues to £398m, and adjusted profit before tax up 28% to £34.6m. This has lifted its share price by as much as 10% in early trading. Emeny attributes this success to the chain's popularity with higher-income households, who have continued to spend despite the rise in the cost of living. This group fiercely protects its discretionary spend on going out, and Fuller's offers a fantastic food, drink, and accommodation experience, ensuring they continue to choose the chain when spending their leisure pound. The company's property portfolio is also valued at £991m, almost £400m above its current book value. This is a significant bump in value, and it suggests that Fuller's may be seen as a high-quality hospitality operator rather than just a collection of pubs. Dan Lane, the UK lead analyst at Robinhood, believes that this valuation of the property portfolio brings the importance of the company's bricks and mortar back into focus. He suggests that the next chapter for the group may not be about selling more pints or rooms, but rather about convincing the market to see it as a high-quality hospitality operator. This could result in a further bump in the value of the property portfolio.
