‘Voucher culture’ here to stay

Chief executive Rooney Anand said the squeeze on household income, despite the economic upturn, meant that a “voucher culture” of affordable deals was here to stay.

The group was also nursing a £7m hit after losing a Court of Appeal battle with HM Revenue & Customs over VAT on gaming machines.

Profits before tax fell 20.6 per cent to £65.6m in the 24 weeks to October 13, though taking out the exceptional effects of the write-down and tax charge they rose 5.7 per cent to £85.6m.

Mr Anand said the group’s strategy was tailored to the difficult spending climate.

He said: “While trading through the first half of the year and since the period-end has been strong, and the economic outlook looks to be improving, customers remain careful with their money, particularly outside London and the South East.”

Like-for-like sales in Greene King’s retail arm – whose pubs, restaurants and hotels include the Hungry Horse and Loch Fyne brands – were up 3.5 per cent. Value initiatives included a ‘Two for £3.99’ offer for over-60s and weekly offers at Hungry Horse sites, as well as the launch of gift cards.

Mr Anand said: “Our customers remain prudent and we believe the ‘voucher culture’ is here to stay.”

Greene King, founded in 1799, operates 2,226 pubs, restaurants and hotels and employs more than 22,000 people.