Profits fall at Greene King chain

PUB Group Greene King warned of toughening market conditions in the UK pub trade after it revealed an eight per cent drop in half-year profits.

The group, which owns the Hungry Horse and Chef and Brewer brands, said half-year results were hit as pub goers tightened their belts, while rivals also slashed prices.

It saw underlying pre-tax profits fall to £127.9 m for the six months to October 15, while like-for-like sales in its managed estate fell 1.4 per cent.

Chief executive Rooney Anand said managed pub trading had improved after a £10m action plan to cut prices, increase promotions and have extra staff where needed. But the Suffolk-based group, founded in 1799, cautioned that falling consumer confidence, cost pressures from national living wage increases and intense competition would remain a challenge.