Greene King sales get weather boost

Greene King said sunnier weather had paid dividends in strong recent trading

Pubs and brewing group Greene King said sunnier weather and its shift towards food had paid dividends in strong recent trading.

Like-for-like sales across its managed outlets - which include Old English Inns and the Hungry Horse chain - rose 5.2% in the eight weeks to June 28.

Food now accounts for more than a third of its retail sales but the better weather also saw an improved performance from its drink-led pubs, the firm added.

Despite uncertainty over the outlook, the firm - behind the market-leading Greene King IPA cask ale - added that brewing volumes were also 12.1% ahead.

Pre-tax profits were down 15% to £118.5 million in the year to May 3, but higher than expected at the time of its recent £200 million rights issue.

Greene King has used the funds from the cash call to bolster its pub estate in the downturn, as well as to slash debt by £46 million.

After a difficult two years in which the recession has heaped even more pressure on trading after the smoking ban and two poor summers, the firm said the sector was "polarising" into stronger and weaker players.

Chief executive Rooney Anand said he looked ahead with "cautious optimism" due to the group's improved estate, stronger balance sheet and further growth opportunities.

But with an election due in less than a year, Mr Anand also warned of political as well as economic uncertainty.

"As a result, quite a lot of the decisions that affect the way we run the economy will be delayed," he added.