Greene King employs over 22,000 people across its main trading businesses: Retail, Pub Partners and Brewing & Brands. It operates 2,256 pubs, restaurants and hotels across the UK, of which 987 are retail pubs, restaurants and hotels, and 1,269 are tenanted, leased and franchised pubs. Its leading retail brands are Hungry Horse, Old English Inns, Eating Inn and Loch Fyne Restaurants. 95% of the estate is either freehold or long leasehold.
And, despite continuing caution about the economy, it’s a company that is clearly performing well both in its day to day operations, but in its strategic progress: for example, in the disposal of non-core properties, and the acquisition of high quality retail sites – as demonstrated by the growing retail sales and pre-tax profit.
Rooney Anand, Greene King chief executive officer, commented:
“This has been another successful year with record results and further, significant progress, led by our retail business, which has delivered 12% profit growth. Our strategy is on track and we have continued to provide exceptional value, service and quality to our customers. We achieved growth in both earnings and dividends, and further improvement in ROCE for our shareholders.
“We have made a strong start to the year, but the overall outlook remains subdued and we are not assuming a pick-up in the economy. However, our strategy is designed, and proven to be appropriate, for these conditions as we shift our business towards higher growth areas of our markets and constantly improve our customer offer. We are confident of maintaining this momentum and delivering further value to our shareholders.”
Preliminary results for the 52 weeks to 28 April 2013
52 Weeks | F12 | F13 | Change |
| Total revenue | £1,140.4m | £1,194.7m | +4.8% |
| Operating profit* | £236.2m | £248.2m | +5.1% |
| Operating margin* | 20.7% | 20.8% | +0.1%pts |
| Profit before tax* | £152.0m | £162.0m | +6.6% |
| Statutory profit before tax | £125.1m | £114.8m | -8.2% |
| Adjusted basic earnings per share* | 53.0p | 57.0p | +7.5% |
| Dividend per share | 24.8p | 26.6p | +7.3% |
PERFORMANCE HIGHLIGHTS
- Retail like-for-like sales up 2.3%; total Retail sales up 7.4%.
- Retail operating profit up 12.1%; margin increased 80 basis points to 19.4%.
- Average EBITDA per pub up 4.2% in Pub Partners; core like-for-like EBITDA up 0.1%.
- Brewing & Brands core own-brewed volume up 1.0%; revenue up 2.1%.
- Strong cash flow; earnings & dividend growth.
- Further improvement in ROCE, up 40 basis points to 8.9%.
- Current trading strong; Retail like-for-like sales up 3.3%.
STRATEGIC PROGRESS
- Estate plan on track; 38 high quality retail sites added, 108 non-core disposals.
- Balance sheet strengthened; net debt to EBITDA 4.7x, fixed charge cover 2.7x.
- Lower pension funding post triennial review; refinanced & bought back bonds before step-up.
*before exceptional items
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