PUB AND brewing giant Greene King yesterday reported record annual sales and profit.
The company said its revenues were up 6.9 per cent to £1.3bn and its pre-tax profit was up 7.4 per cent to £158.2m.
The group added 48 new sites during the year as part of a five-year plan to increase its estate to 1,100.
Following the acquisitions, profit for the retail business grew 12 per cent compared to the prior year.But the City thought it should have done better. As a result:
Shares in FTSE 250-quoted Greene King fell 3.6 per cent yesterday to close at 816.5p.A not atypical over-reaction. They don't recognise a good thing when it stares them in the face. But, as I used to enjoy a pint of Belhaven (now owned by Greene King), I have put my money where my mouth is and bought some shares, We will see - over the next few days and weeks - if my bet is justified.
Update: After the market has been open for 40 minutes, the shares are now priced at 830 pence, an increase of 1.65%, which is enough to give me a modest capital gain (even after allowing for stamp duty and admin fees). Now do I take my modest profit? Or hang on for better things? The latter, I think, comfortable in the knowledge that the shares will in any case deliver annual dividends of over 3%.
Further update: Share price now (9.22 am) over 840p.
This is becoming boring: