Credit crunch causes Greene King to rethink property venture
Suffolk brewer, Greene King has announced an 11 per cent increase in profits for the 24 weeks to October, and said that changes in the property and debt markets have made the planned creation of an 'OpCo/PropCo' structure for some of its pubs, flagged up in July, relatively less attractive.
Greene King posted profits of £71.6m for the period, up from £67.1m last time, on the back of a six per cent growth in revenues to £445m. It said that it anticipated a slightly more challenging second half to the year, but that it expected revenues to remain in line with expectations, and was cautiously encouraged by its experiences under the smoking ban thus far. The company said that its plans to find a partner for a property joint venture involving around 35 per cent of its estate, which it announced before the credit crunch descended this Summer, had become relatively less attractive, but that it is keeping it under review along with alternative options. Shares in the firm have seen a decline of over five per cent, dropping 42.5p to 773.5p.