Greene King half-year profits up 2.8%

Brewing group Greene King has today announced results for the first half of the financial year that show revenue grew by 4.

Greene King half-year profits up 2.8%

Brewing group Greene King has today announced results for the first half of the financial year that show revenue grew by 4.3% to �464.5million.

The company reported like-for-like sales growth of 4.6% for the 24 weeks to September 2009, with profit before tax up 2.8% to �62.4 million.

Operating profit was 3.3% lower than the previous year at �103.3million and earnings per share was 22.6p, 17.2% down on the previous year, due mainly to the dilution by a rights issue, which the company has used to pursue acquisitions.


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Debt was reduced by �211.5million.

At the same time Greene King also released news of an agreement to acquire seven pubs in Scotland from Mitchells & Butlers PLC ("M&B") for a total consideration of �12.7m.

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The acquisition will be financed from the funds raised by the company's rights issue and is expected to complete on December 8.

The pubs will be managed within Belhaven, which was bought by Greene King in 2005 and achieved 8.9% profit growth in the first half of this year.

Greene King says the deal represents another important step for the company as it continues to build on its strong position in Scotland.

In a statement chief executive Rooney Anand said: “Scotland is a key area of focus for Greene King and these high quality pubs will fit very well into the Belhaven estate.”

Mr Anand said he was very pleased with Greene King's performance in the first half of the financial year.

“Whilst the environment remains demanding, each one of our businesses has made substantial progress in their respective markets and profit growth has been achieved in Retail, Belhaven and Brewing Company.

“We were a strong business going into the recession and as a result of the actions we have taken, we are well placed to continue to outperform the sector.

“Although the economic outlook remains uncertain, I am confident we can build on this strong first half performance and continue to deliver value to our shareholders.”

The board has declared an interim dividend of 5.9p per share, in line with the equivalent period last year.

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