Pubs on the rise as sun brings out the drinkers
THE city raised a glass to the UK’s thriving pub and bar scene yesterday following strong results from Fuller Smith & Turner and Revolution Bars.
Revolution, which runs 68 cocktail and rum bars, said the recent terrorist attacks in London and Manchester had failed to put off punters, with year-on-year sales over the period to July 1 jumping 9.2pc to £130.4m.
Although it said business was impacted in the immediate aftermath of the two attacks, Revolution said like-for-like sales growth has since strengthened, up 2.7pc over the last six weeks.
The firm also said the six Revolución de Cuba rum bars and two Revolution bars it has opened over the period are trading ahead of expectations, with plans to open six bars in the new year.
The results are a stark change of tone from the firm, which in midMay guided forecasts lower due to rising costs, with shares subsequently falling to factor in the potential for future profit warnings. As a result of yesterday’s strong results, analysts at Peel Hunt raised the firm to ‘buy’ from ‘add’. Shares rose 11.7pc, or 13.5p, to 129p, a two-month high.
Meanwhile, London brewer and pub owner Fuller Smith & Turner boasted of a strong start to the year, with ‘perfect summer weather’ boosting beer and cider sale volumes by 5pc as people go to the pub more often.
The firm saw total sales in its managed pubs and hotels rise 6.6pc over the 16 weeks to July 22, helping to offset headwinds such as increased business rates, a higher national living wage, and the apprenticeship levy. Boss Simon Emeny took the opportunity to urge the Government to consider the importance of the pub and bar industry when approaching Brexit negotiations.
‘One-in-ten jobs created is in a pub, bar or restaurant and nonUK workers are an essential element in delivering the one billion meals that are served in pubs alone every year,’ he said.
Shares rose yesterday 5.8pc, or 60p, to 1903p.
The FTSE 100 enjoyed a stellar day, buffeted by a 3.4pc leap in the price of copper to its highest level since mid-February as a result of unexpected strength in China’s economy and a weak dollar. It rose 0.8pc, or 57.1p, to 7434.8p The biggest winners were Antofagasta, up 7.5pc, or 66p, to 951p,
Anglo American, which rose 6.1pc, or 67p, to 1171.5p, and Glencore, which advanced 5.8pc, or 18p, to 330.65p. Away from the mining sector,
Victrex reported a 26pc jump in revenues to £76.3m over the three months to June, with strength in its automobile arm offsetting weaker demand in consumer electronics. The firm makes a type of plastic which is sold globally and used in products as wide-ranging as dentures, aircraft, mobile phones, and oil rigs. Shares rose 4.5pc, or 86p, to 1990p.
After trading closed, challenger bank Metro Bank announced that it will place 8m shares in the market at 3465p each – roughly 9.9pc of its total capital – which will raise around £278m.
The money raised will be used to support growth at the firm and increase liquidity following its acquisition of a portfolio of UK mortgages in June for £596.7m.
Alongside the placing, the bank announced pre-tax profit of £6m in the first half of the year, spurred on by a 67pc surge in lending to £7.8bn after acquiring the UK mortgage loan book.
Metro, which also saw deposits grow 49pc to £9.8bn, wants to increase loan growth as competition grows from other lenders.
Shares fell 0.3pc or 10p to 3465p.