LONDON (Alliance News) - Pub operator Greene King PLC on Wednesday said its pretax profit and revenue rose in the first half thanks to the integration of the Spirit Pub Co PLC business, though like-for-like sales growth also was solid and the group hiked its interim dividend.
The FTSE 250-listed company said its pretax profit for the 24 weeks to October 18 was GBP84.9 million, up from GBP72.0 million, as revenue surged up to GBP917.7 million from GBP614.9 million, driven by the acquisition of rival Spirit Pub Co.
Greene King said the integration of Spirit, which it acquired a year ago for GBP773.6 million, was ahead of plan and said it expects to outperform its initial cost synergy guidance on the deal.
Like-for-like sales for the Greene King retail business rose 2.0% in the half, while like-for-like sales in the Spirit Managed estate rose 1.2%. Like-for-like income from its Pub Partners and Brewing & Brands businesses also increased in the half.
The group will pay an interim dividend of 8.45 pence, up from 7.95p.
"It has been a strong first half, with the Greene King business strengthening and significant progress made in the Spirit integration. Like-for-like sales growth in Greene King Retail improved during the half and both Pub Partners and Brewing & Brands delivered profit growth and margin expansion," said Chief Executive Rooney Anand.
"We believe we have the best portfolio of retail pub brands, the best pub assets and the most talented team which, when combined with the strong contribution from synergies and the benefits of our enlarged scale, will ensure we continue delivering value to our customers and our shareholders," Anand added.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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