Greene King confident in 'demanding' market

Greene King, the brewer and pubs chain, posted pre-tax profits of £62.4 million for the six months to October 18, a 2.8 per cent increase on last year, and said that trade was improving despite a "demanding" environment for pubs.

With like-for-like sales in its retail business up 4.6 per cent on the same period last year, the brewer, which owns 1,600 pubs and leases and manages a further 900, said that revenue had increased by £20 million and that it had reduced its £1.3 billion debt burden by £211.5 million.

Greene King also announced that it was buying seven pubs in Scotland for £12.7 million, using capital raised by a £207.5 million rights issue launched in April this year to fund the acquisition of struggling pubs.

The brewer said that it planned to make further purchases of freeholds and managed pubs in Scotland and the South East
The group, which brews the Abbot Ale and Old Speckled Hen brands, said that it planned to pay an interim dividend of 5.9p a share to shareholders on January 29, 2010.

Rooney Anand, the chief executive of Greene King, said he was confident that the group would "continue to outperform" the rest of the sector.

"Whilst the environment remains demanding, each one of our businesses has made substantial progress in their respective markets," Mr Anand said.

"Although the economic outlook remains uncertain, I am confident we can build on this strong first-half performance and continue to deliver value to our shareholders."

Greene King's share price soared by 31.7p to 433p in early trading.