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INTERIM MANAGEMENT STATEMENT At its AGM today, Greene King will make the following Interim Management Statement for the 18 weeks to 4 September 2011. CURRENT TRADING Our strategy is to grow our Retail business and it is therefore encouraging to report like-for-like (LFL) sales in Greene King Retail, our largest and fastest growing division, up 2.6% after 18 weeks, with 4.3% LFL growth in the last ten weeks. This strong performance is despite the negative impact of last year's World Cup. Our focus on food continues to deliver strong results with LFL sales up 4.2% after 18 weeks and 4.7% growth in the last ten weeks. Both of this year's acquisitions, Cloverleaf and Realpubs, are trading strongly. In addition, we have declared the offer for Capital Pub Company unconditional and we can now begin to integrate Capital into Greene King and start to capture operational synergies of at least £2m. After 16 weeks, average EBITDA per pub in Pub Partners was up 2.4% with LFL EBITDA down 1.0%. LFL EBITDA in our core estate is ahead of last year. In Brewing and Brands, core brand own-brewed volume is up 1.8%, with 5.0% growth in the last ten weeks, compared to the UK ale market down 8.0% in the last quarter. All of our category-leading core brands are outperforming their categories with Old Speckled Hen performing particularly well. Overall, our margins, profit, cashflow and balance sheet remain in line with our expectations.
RECOMMENDED CASH OFFER BY GREENE KING PLC FOR THE CAPITAL PUB COMPANY PLC Compulsory acquisition, cancellation of admission to trading and re-registration of Capital Pubs Further to the announcement made on 22 August 2011 that the Offer had been declared unconditional in all respects, Greene King announces that, as at 1.00 p.m. on 2 September 2011, it has received acceptances in respect of Capital Pubs Shares representing 94.7 per cent. of the shares to which the Offer relates. Accordingly, Greene King announces its intention to compulsorily acquire the outstanding Capital Pubs Shares under the provisions of sections 974-991 (inclusive) of the Companies Act 2006. Greene King also announces that Capital Pubs intends to apply to the London Stock Exchange for its admission to trading on AIM to be cancelled. It is anticipated that such cancellation will take effect not earlier than 3 October 2011, being 20 business days following the date of this announcement. Delisting would significantly reduce the liquidity and marketability of any Capital Pubs Shares in respect of which acceptances of Offer are not submitted. It is anticipated that, after the Capital Pubs Shares are de-listed, Capital Pubs will be re-registered as a private company under the relevant provisions of the Companies Act 2006. As previously announced the Offer remains open for acceptance until further notice. Terms defined in the Offer Document dated 29 July 2011 have the same meanings in this announcement, unless the context requires otherwise. Capital Pubs Shareholders who have not yet accepted the Offer are urged to complete, sign and return the Form of Acceptance (along with their share certificate(s) and any appropriate documents of title) by post or by hand (during normal business hours only) to Capita Registrars, Corporate Actions, The Registry, 34 Beckenham Road, Beckenham, Kent BR3 4TU as soon as possible. Capital Pubs Shareholders who hold their Capital Pubs Shares in CREST should follow the additional procedures set out in the Offer Document. If you are a CREST sponsored member you should refer to your CREST sponsor before taking any action.
... and don't forget to round it of with the Knickerbocker Glory, which the Manager's wife proudly announces she makes herself on request! Cheers Sam
Sam - cheers - the Hungry Horse, Salisbury ! - I will have to remember that the next time I am down that way. GL
Investec initiates sell on Greene King, target price 375p.
From my personal observations, I can definitely agree with the perspective of your post. We dropped into the Hungry Horse on a main road in Salisbury the other evening.The place was packed (no sign of a recession here!) and we had a good meal and drinks at very reasonable prices and all with good and friendly service. If this is typical of Greene King establishments (and I'm hearing that it is), then we won't go far wrong owning shares in here. Cheers Sam .
BUY: GREENE KING "One of my most recent ideas is a regional brewer, Greene King. It combines a collection of several thousand (mostly freehold) pubs with a significant brewing division, which produces popular real ales such as Greene King IPA and Old Speckled Hen. "We're buying shares for two reasons: the first is a long-term strategic one. The brewer offers fantastic protection against inflation because it owns a lot of good-quality property. "Greene King has built up its estate of pubs over generations, since the 18th century. Some are in fantastic locations, and are places where people have been meeting for a drink and a chat for years, and where their children's children continue to go. "A further protection against inflation is the fact that people will go to pubs in most economic environments - it takes a lot to persuade them to stop. "The second reason we are buying Greene King shares is more tactical and short term. Over the past three or four years, its price has fallen significantly as this type of company has been out of favour. And although it's not a pub company as such, its share price has fallen in sympathy with the problems in the rest of the sector. "This has given us a good opportunity to start buying its shares. Traditional pub companies have suffered from too much debt, but the regional brewers have come through the recession in a lot better shape. "By the standards of the industry, our approach is unusually long term and strategic: our turnover is around 7% a year. When we build up a holding, we hope to have it for about another 10 years. With that time horizon in mind, this is a good time to be buying Greene King." Nick Train, Moneywise
Share purchases take interests in The Capital Pub Company Plc ("Capital Pubs") to 46.1 per cent. Greene King announces that it has today acquired, subject to settlement, a total of 2,914,819 Capital Pubs Shares, representing approximately 10.8 per cent. of the issued share capital of Capital Pubs. The Capital Pubs Shares were acquired at a price of 235 pence per share. In addition, Greene King has received an irrevocable undertaking from Unicorn Asset Management Limited ("Unicorn") to accept the Greene King offer announced on 19 July 2011 in respect of the 440,000 ordinary shares in Capital Pubs held by Unicorn representing approximately 1.6 per cent of the total issued share capital of Capital Pubs (the "Unicorn Irrevocable"). The Unicorn Irrevocable will cease to be binding in the event of an offer for the ordinary share capital of Capital Pubs being made by another party which has a value in excess of 249.1 pence per Capital Pubs Share. Such Capital Pubs Shares and the Unicorn Irrevocable, together with the Capital Pubs Shares which are the subject of the irrevocable undertakings received from the Capital Pubs Directors and Capital Pubs Shareholders to accept (or procure the acceptance of) the Offer, as announced earlier today, represent in aggregate approximately 46.1 per cent. of the current issued share capital of Capital Pubs. Terms herein have the same meaning as in the announcement of the Offer dated 19 July 2011, save where the context requires otherwise.
http://www.investegate.co.uk/Article.aspx?id=201107191535026704K
Sam - yes present SP dip can only be due to market sentiment with the ongoing crisis around the globe. Once that calms down many shares will see some healthy gains. I dont doubt GNK will be one of them
RBS initiates hold on Greene King, target price raised from 515p to 530p.
There have been decent reviews from a range of other press (FT, Telegraph, IC) and brokers over the last few days. The market seems to appreciate GNK's competent management in these straightened times. Cheers Sam
While Greene King’s retail estate of 915 pubs remains the driver thanks to sizzling food sales, its brewing business and 2,400 tenanted pubs are also outpacing rivals. Greene King’s skill at increasing sales while mitigating cost rises has kept the cash flowing, allowing it to lift the divdend for the year by 7.4% – good going in a tough market. The shares, off 30.6p at 487.4p, are trading on a forward multiple of about 9.5. Buy, says the Times. Greene King’s net debt of GBP1.4bn makes the Independent a little queasy but fixed charges such as interest payments and rent are 2.6 times covered. The company’s food offering is performing strongly and its expansion strategy is aggressive and ought to help it to continue to grab market share. Plus, the valuation, at about 10 times full year earnings, is undemanding with a forecast yield of 5 per cent. Hold, the newspaper says.
Greene King (GNK), the pub operator, saw sales rise by 6% to 1.043 billion in the 52 weeks to 1st May 2011. This was driven by like-for-like food sales up by 8.1% and total like-for-like sales up by 4.9%. Despite the difficult consumer environment the firm made record pre-tax profits of 140 million pounds for the year. Analyst Simon French at Panmure Gordon reiterated his "buy" recommendation and 540p target price on the news.
I wonder if they were served a pint or two of rather nice Abbot ale to help them on their way round. There must be worse jobs! Cheers Sam
I note there's'a "buy" recommendation in the new edition of the IC out today. Cheers Sam
Its encouraging to see the Chairman Tim Bridge personally buying in big (announced today), following the upbeat announcements last week on performance (healthy balance sheet and cashflow) and new purchases (Realpubs). The market seems to like it all today too. Cheers Sam
Greene King secures new debt facility Date: Monday 04 Apr 2011 LONDON (ShareCast) - Pub group and brewer Greene King has agreed a new debt facility with its lenders that will help it finance its expansion plans over the next five years. The new £400m revolving credit facility starts this year and lasts for five years. It replaces an existing £400m facility that was due to expire in April 2012. Greene King said that, given the previous facility was agreed in early 2007 when more attractive margins were available, the new facility will increase its annual interest costs by about £2.5m a year. It is expected to result in a blended interest rate of about 6.1%. “This new facility gives Greene King continued financial flexibility and helps underpin the ongoing delivery of our Retail expansion and overall growth strategy,” the company said. Greene King, which brews beers such as Old Speckled Hen and Abbot Ale and serves them in its pubs, said in December that it plans to grow its managed pubs and restaurants business to about 1,100 outlets from 900 currently in the next five years. Most recently the company acquired Northern England- and Midlands-focused pub restaurant group Cloverleaf, to which it intends to add at least 10 new sites in the next two years.
... carried an upbeat article on GNK yesterday. http://www.thisismoney.co.uk/investing/share-tips-and-fund-tips/article.html?in_article_id=523861&in_page_id=23 Cheers Sam
This is a quiet board! Bought in here yesterday, searching for value. I was impressed by the two articles in the current Investors Chronicle (11-17 February) - one on the great GNK results and divi recently announced, despite the recession; and the other listing the 25 current shares they reckoned John Keynes might have bought if he was still around today, which includes GNK. There's loads of other recent positive Press and Broker sentiment around on GNK at present, too. And as a consumer of their ales from supermarkets and occasionally food too on-premises, I can't go wrong? I hope not! Cheers Sam
Sorry, not been here for a while! Pea Porridge is at 28-29 Cannon Street opposite The Cannon pub (surely the best pub in Bury?) www.peaporridge.co.uk