Beat the Footsie – by investing in His Majesty’s brands

A selection of the King’s favourite firms has outperformed the FTSE 100 over the past three years.

An index of ten leading companies with brands holding Royal Warrants – from rifle and watch makers to raincoat and shoe sellers – have almost doubled in value since April 2020, according to analysis from investment platform eToro.

The FTSE 100 has risen by just 36 per cent over the same period, lagging the ‘King Charles’ index.

Royal Warrants, a coveted seal of approval that can boost sales, are issued to firms that supply the monarch’s household, ranging from multi-national companies to individual craftsmen.

Top performing warrant-holders include Burberry, the luxury goods giant listed on the London Stock Exchange, which has doubled in value in three years. Watches of Switzerland, the owner of British jeweller Mappin & Webb, which was granted its first warrant in the 19th century, has seen its market value soar by more than 250 per cent to £2 billion over the past three years.

Tea company Twinings was given its first Royal Warrant by Queen Victoria in 1837. Shares in its parent company, Associated British Foods, have risen 10 per cent since spring 2020, when stock markets crashed on Covid lockdowns. Royal Doulton owner Fiskars managed 54 per cent growth.

Mike Ashley’s Frasers Group, which owns Royal Warrant tailor Gieves & Hawkes, as well as brands such as Sports Direct, has risen by 250 per cent. It is worth £3.6 billion.

The owner of shotgun and rifle maker Purdey – the luxury goods giant Richemont – and the parent company of John Lobb shoes –Hermes – have both almost tripled in value.

Ben Laidler, global markets strategist at eToro, said: ‘The strong price performance of this index shows heritage and luxury sells, regardless of economic ups and downs.’

He added that the brands included in the index ‘all have unique histories’ that make them a popular pick even if times are tough.

It has not been smooth sailing for all firms, however. Car maker Aston Martin – a favourite of James Bond – has plunged by 95 per cent following huge drops in profit.

Brewer Shepherd Neame is another laggard with shares down 20 per cent, while Parker Pens owner Newell Brands fell 5 per cent.

Privately owned companies with warrants include Fortnum & Mason, posh chocolatier Prestat and perfumery Floris.