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Move to food lifts pub group Greene King
PUBS and brewing group Greene King today said sunnier weather and its shift towards food had paid dividends in strong recent trading.
Like-for-like sales across its managed outlets - which include Old English Inns and the Hungry Horse chain - rose 5.2 per cent in the eight weeks to June 28.
Food now accounts for more than a third of its retail sales but the better weather also saw an improved performance from its drink-led pubs, the firm added.
Despite uncertainty over the outlook, the firm - behind the market-leading Greene King IPA cask ale - added that brewing volumes were also 12.1 per cent ahead.
Pre-tax profits were down 15 per cent to 118.5 million in the year to May 3, but higher than expected at the time of its recent 200 million rights issue.
Greene King has used the funds from the cash call to bolster its pub estate in the downturn, as well as to slash debt by 46 million.
After a difficult two years in which the recession has heaped even more pressure on trading after the smoking ban and two poor summers, the firm said the sector was "polarising" into stronger and weaker players.
Chief executive Rooney Anand said he looked ahead with "cautious optimism" due to the group's improved estate, stronger balance sheet and further growth opportunities.
But with an election due in less than a year, Mr Anand also warned of political as well as economic uncertainty.
"As a result, quite a lot of the decisions that affect the way we run the economy will be delayed," he added.
Greene King, which has almost 2,200 pubs, also pushed profits at Scottish business Belhaven past the 30 million mark for the first time since it bought the division in 2005. Like-for-like sales are more than 10 per cent ahead in recent trading.
Despite the increased trading pressure on tenants in its leasehold pubs, the firm added that just 30 pubs – two per cent of the estate - had been closed.
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Weather for Yorkshire
Thursday 24 May 2012
Today
Sunny spells
Temperature: 10 C to 25 C
Wind Speed: 12 mph
Wind direction: North east
Tomorrow
Sunny
Temperature: 9 C to 21 C
Wind Speed: 16 mph
Wind direction: East
