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UK: British regional brewer and pubs company Greene King Plc posted a 10 % rise in annual profits on July 1 and added that the Euro 2004 football competition had boosted trade at its pubs during June, according to Reuters. The firm, which brews Greene King IPA, Old Speckled Hen and Abbot Ale beers and runs nearly 1,700 pubs in southern England, said football in Portugal helped kick start its new financial year, which began on May 3, with fans flocking to its pubs.

"Overall our football pubs such as our community houses and some of our Hungry Horses did well because of the football," said Tim Bridge in an interview after annual results. Its 528 managed pubs showed underlying sales growth slowing last year, but football-watching pub-goers pushed like-for-like sales up 4.4 percent in the first eight weeks as the England team reached the quarter-finals before losing to hosts Portugal. Overall its managed pubs, including its food-led suburban Hungry Horses, showed annual like-for-like sales up 2.7 percent, below the 3.8 percent rise in the first-half, and the 3.4 percent rise in the 36-week period to January 11.

The 205-year old Suffolk brewer reported pre-tax profits of 82.6 million pounds ($149.9 million) for the year to May 2, just above analysts' forecasts of 80.0-81.5 million pounds, with annual sales up three percent at 552.7 million pounds. Bridge said all three of its trading divisions -- managed pubs, leased pubs and brewing -- showed increased profits during May and June as its new financial year started well.

But analysts said the group's shares were starting to look expensive after their run-up in June, and it needed to ramp up organic growth, buy back more shares or make an acquisition. "These are very solid decent numbers which will lead to some earnings upgrades, but the stock is expensive and the group needs to do something strategic, like make an acquisition," said analyst Greg Feehely at Altium Capital.

Greene King shares dipped 0.9 percent to 1,005 1/2 pence by 0745 GMT after rallying from an early June low of 895p. They have outperformed the FTSE 100 index by almost 15 percent over the last year, but have narrowly underperformed close rival Wolverhampton and Dudley Breweries Plc.

Bids are due on Friday in the auction for the 432 pubs of the Laurel Pub Company, owned by Deutsche Bank's private equity arm. Sources close to the auction say four bids are expected for the estate, which could fetch up to 450 million pounds. Bridge declined to comment on his interest in Laurel, saying, "When opportunities come up we will always have a look". The group raised its year dividend 10 percent to 33p a share, while adjusted earnings rose 13 percent to 80.2p a share.


02 July, 2004