Pub company Greene King has boosted profits by 8.6% as it continues to rebalance its portfolio.
The group acquired or transferred in 51 new retail sites this year, according to its preliminary results for the year ended 29 April 2012.
The acquisitions comprised 33 pubs that were part of the £96m Capital Pub Company buy-out last September, as well as 13 new pubs for £18.7m and 16 additional development sites spread around the country.
But the group’s net estate continues to shrink as it pursues an aggressive disposals strategy for its tenanted sites in the Pub Partners division.
Greene King disposed of 115 non-core pubs and other properties during the period for £29.9m, marginally ahead of the book value of the assets.
It is the second year of group’s “focused growth strategy” which has seen the Pub Partners estate fall from 1,700 sites four years ago to 1,380 today. Greene King aims to reduce the estate to 1,200 sites by 2014.
Total revenue for the group was up by 9.4% to £1.1bn, with pretax profit up by 8.6% to £152m.
Greene King chief executive Rooney Anand said: “Our team has once again delivered record results and attractive returns to our shareholders in a difficult environment.
“We have achieved strong growth and made further strategic progress. All our businesses are building customer loyalty by delivering industry-leading value, service and quality as we strive to be Britain’s best pubs and beer business.
“We are in the middle of an exciting summer for Britain, despite the unpredictable weather, with the Diamond Jubilee, Euro 2012 and with the Olympics still to come. However, looking further ahead, our customers’ spending will continue to be squeezed and concerns remain about job security. Our strategy is tailored for these difficult conditions as we focus on providing ‘everyday treats’ to our customers and delivering sustainable growth in earnings and dividends for our shareholders.”
jack.sidders@estatesgazette.com
