Greene King sets new revenue record at £1.315bn
Pub and leisure group Greene King has posted record revenues for the second successive year and topped £1 billion for total retail revenue for the first time for the 52 weeks to May 3.
The share price was up 11p to 855.50p on early UK trading. Revenue for the period was £1.315bn – up three per cent on a 52-week basis – but pre-tax profit fell by 0.8 per cent to £168.5 million.
Chief executive Rooney Anand said the bottom line was affected by lower like-for-like sales growth and the impact of the disposal of 275 pubs to Hawthorn Leisure.
Anand said: “Greene King has delivered another record year in a challenging trading environment. We have delivered good underlying growth across all parts of the business with retail generating revenue of over £1bn for the first time.
“Underlying earnings growth of over nine per cent has enabled a dividend increase of 4.8 per cent, reflecting our confidence in the strength of the business and its prospects for future growth. We have also completed a successful five-year strategic plan, surpassing our goals, as we delivered significant progress, changed the business mix and better positioned the company for the future.
“We now enter another exciting new phase in the company's history, with the acquisition of Spirit, creating the UK’s leading managed pub company. The acquisition will further strengthen our platform to deliver sustainable, long-term success for the benefit of our customers, our employees and our shareholders.”
Return on capital employed further increased to 9.3 per cent.