Greene King - Will they continue this recovery

Tuesday, 8th January 2019 08:19 - by Rajan Dhall

Greene King today released their latest trading statement for the 36 weeks to 6th January 2019. Here are some of the highlights:

Company like-for-like (LFL) sales were up 3.2% following strong trading over the Christmas period as we continue to trade ahead of the market

LFL sales in the last two weeks, covering Christmas and the New Year, were up 10.9% and we achieved record Christmas day sales of £7.7m

Pub Partners LFL net profit was down approximately 1% while total beer volumes in Brewing & Brands were up 1.8% and own-brewed volumes were down 2.3%.

Remaining on course to dispose of 100-110 pubs and open around nine new pubs in the financial year.

Bought back £62m of the Spirit A5 bonds to date

Looking at the daily chart it seems we may be heading to test the downward trendline drawn on the weekly chart. Shares have fallen in recent times and a result like this could provide the market with some impetus to bring shares back in the right direction. The OBV (on balance volume) indicator at the top of the chart shows that buyers are backing this move as it moves higher as price does. The RSI at the bottom is also showing there is some space for a potential move higher. In terms of resistance levels, 586p looks pretty strong as price bounced off there last year twice in Jan and Apr. It also confluences with the longer term weekly trendline which could be a sticky area. All in all, it would be a bullish signal if both those levels broke and price managed to hold above 586p by the end of the week.

The Writer's views are their own, not a representation of London South East's. No advice is inferred or given. If you require financial advice, please seek an Independent Financial Adviser.