Pub operator Greene King Plc (LON:GKN) saw its full-year revenue soar to a record £1.32 billion, the company has said. The results come as the pub group wrapped up its acquisition of rival Spirit Pub Company.
Greene King’s share price has advanced in today’s trading, having gained 1.12 percent to 854.00p as of 15:01 BST. The group’s shares have been little changed over the past year.
Greene King announced in a statement today that its total revenue had climbed 1.1 percent to £1.3 billion in the 52 weeks ended May 3, 2015, with retail revenue surpassing £1 billion for the first time. Profit before tax, however, slipped 2.7 percent to £168.5 million.
“Greene King has delivered another record year in a challenging trading environment,” the pub group’s chief executive officer Rooney Anand said in the statement, adding that the group’s underlying earnings growth had enabled it to hike dividend by 4.8 percent. Underlying adjusted earnings per share rose 7.1 percent to 60.4p.
While reporting that it had seen a steady start to the new financial year, Greene King, sounded a note of caution on Scotland where the company has suffered from the introduction of a lower drink-driving limit just before Christmas. The pub group warned that it expected continued like-for-like sales weakness in Scotland at least in the first full year following the introduction of the new limit.
Among the highlights in today’s statement was Greene King’s £773.6 million takeover of Spirit which was cleared by the Competition and Markets Authority at the end of last month. The acquisition brings Greene King’s total estate to 3,100 pubs, restaurants and hotels, including over 1,000 in London and the south east. The company expects to generate at least £30 million of cost synergies as a result of the merger.