With just under a month to go until the Olympic Games begin in London, the recent Jubilee festivities and the European football championships, focus remains firmly on the UK. Here four of Fidelity Worldwide Investment’s portfolio managers have selected five UK stocks that they believe may benefit from the events of summer 2012 and beyond:
Tom Ewing, Fidelity UK Growth Fund
Chime Communications: Chime has a number of positions in specialist marketing areas, including the fast-growing area of sports marketing. Chime owns the company responsible for the branding of the 2012 Olympics. It has recently acquired a Brazilian marketing agency, which should leave it well placed to bid for business connected to the next Wold Cup and the 2016 Olympics, both of which will take place in Rio di Janeiro. Its exposure to these attractive markets could make it a target for larger companies such WPP, which already has a large shareholding in the company.
Alex Wright, UK Smaller Companies Fund
Braemar Shipping Services: Braemar is a ship broking business that has diversified into other shipping related areas. It has the rights to a number of cruise liner berths on the River Thames. Under normal circumstances, there are not a large number of cruise liners wanting to dock on the Thames. However, the Olympics has created a surge in demand for these facilities, as operators offer special Olympic packages. The company believes this extra demand will make a meaningful contribution to its earnings for the year.
Snoozebox: Snoozebox is a new company that offers temporary hotel rooms that can be transported on articulated lorries. The company has been set up to take advantage of the growing number of events where accommodation is a problem. For example, it accommodated over 600 of the performers at the Queen’s Diamond Jubilee pageant at Windsor Castle. We are expecting the company’s unique portable hotel rooms to be in demand over the summer, not least during the Olympic period.
Aruna Karunathilake, UK Aggressive & FAST UK funds
Burberry: London is expected to receive millions of extra visitors this summer due to the Olympics. This should provide a boost for some of the capital’s prime shopping destinations, including luxury goods retailer Burberry’s flagship store on Bond Street. The company has been preparing its store for an influx of wealthy visitors by aggressively increasing floor space across London, including new stores in Covent Garden and Regent Street.
James Griffin, MoneyBuilder Growth Fund
William Hill: Whilst the Olympic Games will attract a small number of punters, it is this summer’s Euro 2012 tournament in Poland and the Ukraine that will see the most betting activity. William Hill, as the UK’s largest bookmaker, will be poised to capitalise on these with a highly cash generative network of the over the counter shops, telephone service, and fast growing online service.
