Greene King H1 revenues top £1bn

Greene King reports record revenue of £1,044.3m for the 24 weeks to 16 October - 13.8% up on last time and the first time it has passed £1bn revenue in the first half of the year.

Operating profit before exceptional items was £203.7m, up 13.0%. This growth was driven by a combination of underlying growth, the benefits of capital investment, seven additional weeks of Spirit trading and £13.2m of synergies from the integration.

All divisions achieved profit growth in the period.

The operating margin before exceptional items was 19.5%, down ten basis points (bps) on last year, reflecting the higher contribution from Pub Company.

Profit before tax and exceptional items was up 14.6% to £139.0m while adjusted earnings per share grew 4.3% to 36.0p, reflecting the new shares issued at the time of the Spirit acquisition.

Chief executive Rooney Anand said: "We have delivered market outperformance and strong integration momentum against a backdrop of continued challenging market conditions. Our performance has been driven by growth in all divisions and the synergy benefits from the integration. These have helped to offset increased cost pressures, particularly from the National Living Wage, as well as additional investment in the customer offer to meet higher guest expectations of value, service and quality.

"The full impact of the UK decision to leave the EU remains unclear. Looking ahead, increasing levels of consumer uncertainty, further cost pressures and the changing dynamics of eating out, mean the consumer environment is likely to become more challenging. However, we are confident that the strength of our brands, pubs, people and cash generation leaves us well placed to deliver another year of progress, value creation and returns for our shareholders."