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Greene King meet expectations with pre-tax profit down only 15% at £118.5million
Greene King posted a smaller-than-expected fall in full-year profit and said it had benefited from an upturn in trading in recent weeks, driven by a sharp increase in sales of food.
Greene King, which has around 2,500 pubs in England and Scotland, today said pretax profit for the year to May 3 fell 15% to £118.5 million on revenues 1.3% higher at £954.6 million.
Analysts, on average, expected Greene King to post a profit of £116 million for the year.
The company, which recently raised £207.5 million through a rights issue to acquire pubs from struggling rivals and buy back debt, held the final dividend at 15.1 pence per share.
During the past 12 months GK disposed of 128 non-core properties for £44.2million, which realised a profit of £3.7million against book value, no mean feat in today's market. It also underlines the accuracy of their book values. Since the disposal programme and the start of the new financial year GK have bought 11 quality pubs from Punch Taverns for £30.4million.
"The funds raised by our recent rights issue will further strengthen our position through selective acquisitions. Although the outlook remains uncertain, current trading is encouraging and we look forward with cautious optimism," Greene King Chief Executive Rooney Anand said in a statement.
Britain's pubs have been plagued by dire trading conditions as a toxic mix of the recession, above-inflation tax rises, miserable weather last summer, and cheap booze offers in supermarkets combined to keep drinkers at home.
Beer volumes at GK in it's own-brewed beers have increased 12.1% in a beer market which declined overall by 9%, helped by Ruddles and Belhaven Best. Greene King IPA remains the UK's No1 cask ale with 20.5% of that market. Retail food volumes have been increased by real value-for-money offers in the Hungry Horse and both mainstream Inns and local pubs, and food now accounts for 35% of total sales.
Greene King, which has around 2,500 pubs in England and Scotland, today said pretax profit for the year to May 3 fell 15% to £118.5 million on revenues 1.3% higher at £954.6 million.
Analysts, on average, expected Greene King to post a profit of £116 million for the year.
The company, which recently raised £207.5 million through a rights issue to acquire pubs from struggling rivals and buy back debt, held the final dividend at 15.1 pence per share.
During the past 12 months GK disposed of 128 non-core properties for £44.2million, which realised a profit of £3.7million against book value, no mean feat in today's market. It also underlines the accuracy of their book values. Since the disposal programme and the start of the new financial year GK have bought 11 quality pubs from Punch Taverns for £30.4million.
"The funds raised by our recent rights issue will further strengthen our position through selective acquisitions. Although the outlook remains uncertain, current trading is encouraging and we look forward with cautious optimism," Greene King Chief Executive Rooney Anand said in a statement.
Britain's pubs have been plagued by dire trading conditions as a toxic mix of the recession, above-inflation tax rises, miserable weather last summer, and cheap booze offers in supermarkets combined to keep drinkers at home.
Beer volumes at GK in it's own-brewed beers have increased 12.1% in a beer market which declined overall by 9%, helped by Ruddles and Belhaven Best. Greene King IPA remains the UK's No1 cask ale with 20.5% of that market. Retail food volumes have been increased by real value-for-money offers in the Hungry Horse and both mainstream Inns and local pubs, and food now accounts for 35% of total sales.
Thu, 2nd Jul 2009