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Greene King surges as Spirit Pub integration boosts interim profit

Wed, 02nd Dec 2015 07:15

(ShareCast News) - Pub operator Greene King posted a rise in first half pre-tax profit and revenue thanks in part to the integration of Spirit Pub Company.For the 24 weeks to 18 October, statutory pre-tax profit increased 17.9% to £84.9m as revenue surged 49.2% to £917.7m.Chief executive officer Rooney Anand said: "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."We completed the acquisition of Spirit Pub Company and, by combining the best of both companies, made good progress in capturing value from the acquisition and creating the UK's leading pub hospitality company."Greene King, which completed the acquisition of Spirit Pub on 23 June, lifted its interim dividend by 6.3% to 8.45p per share.In addition, the group said it now expects to exceed its initial guidance on cost synergies of £30m and raised the synergy target to £35m.The company said like-for-like sales were up 2%, while LFL sales at the Spirit Managed estate were 1.2% higher.Greene King added that it is confident of being able to mitigate most of the impact from the introduction of the national living wage, which will affect its cost base.It said options include enhanced labour scheduling and improving labour utilisation across the whole day. It expect the benefits of mitigating actions to be fully achieved in 2018/2019.Canaccord Genuity, which rates the stock at 'buy', said: "The song goes that the first step is the hardest but Greene King has made it look easy with an excellent interims statement this morning.""All metrics are better than we expected, the integration is ahead of plan and synergy guidance has been raised."Keith Bowman, equity analyst at Hargreaves Lansdown said the newly-combined pub company has made an impressive start."Cost savings in relation to the takeover of Spirit have been raised, trading at both Greene King and Spirit has proved robust, whilst management is confident in its ability to mitigate most of the increased cost from the new and coming national living wage," he said.At 1210 GMT, Greene King shares were up 9.4% at 931.50p.
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9 Sep 2016 07:37

Greene King hails 'strong start' to year but warns over Brexit impact

(ShareCast News) - Pub company Greene King said it has made a strong start to the year, with like-for-like sales growth of 1.7% in the 18 weeks to 4 September, but sounded a cautious note on the impact of the Brexit vote. Greene King attributed its strong start to the European Football Championships

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2 Sep 2016 15:05

UK Shareholder Meetings Calendar - Next 7 Days

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2 Sep 2016 15:04

UK Earnings, Trading Statements Calendar - Next 7 Days

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15 Jul 2016 08:33

BROKER RATINGS SUMMARY: Bernstein Cuts Next And M&S To Underperform

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7 Jul 2016 08:52

DIRECTOR DEALINGS: Greene King Non-Executive Director Buys Shares

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5 Jul 2016 14:58

DIRECTOR DEALINGS: Greene King Chairman Philip Yea Buys Shares

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1 Jul 2016 08:51

BROKER RATINGS SUMMARY: Berenberg - Buy Dignity; Liberum - Buy Genus

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29 Jun 2016 13:30

CORRECTED-UPDATE 2-Pub firm Greene King expects to win market share post-Brexit

(Corrects to remove reference to Hungry Horse as a Spirit brand in paragraph 10. It is a Greene King brand.) * Expects to win market share despite Brexit vote * Comparable retail sales up 2.8 pct since start of current FY * FY pretax profit beats consensus * Shares rise as

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29 Jun 2016 07:33

Greene King FY profit up 52%, but warns on Brexit impact

(ShareCast News) - Pub group Greene King reported a surge in full-year profit and revenue, partly thanks to its acquisition of Spirit Pub Company, but cautioned that Brexit was likely to hit consumer confidence in the near term. For the 52 weeks to 1 May, adjusted pre-tax profit rose 52.2% to £256.5

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29 Jun 2016 07:16

TOP NEWS: Greene King Warns On Consumer Confidence Post-Brexit

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22 Jun 2016 15:05

UK Earnings, Trading Statements Calendar - Next 7 Days

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16 Jun 2016 08:10

'Casual dining' restaurants suffer but pubs bubble up, Coffer Peach finds

(ShareCast News) - Trading at larger UK pubs and restaurant groups slowed even further in May, with like-for-like sales down 1.4% year-on-year as a hefty decline at casual dining chains outweighed a small improvement for pubs. These findings from the Coffer Peach Business Trackers were the bigge

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19 May 2016 07:51

Pubs suffer tough April as restaurants enjoy further growth

(ShareCast News) - The restaurants and pubs sector endured a further decline in like-for-like sales in April, as wavering consumer confidence mixed with inclement weather. Like-for-like sales across managed pub and restaurant groups fell 0.8% against the same month last year, according to the Coffer

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17 Mar 2016 08:41

Pub and restaurant sales fall flat in February, Peach Tracker finds

(ShareCast News) - Pub and restaurant sales were flat last month and the industry expects to endure a tougher year than last, according to a respected industry survey. The results of the monthly Peach Tracker, produced by CGA Peach in partnership with Coffer Group, RSM and UBS, found like-for-like s

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