Divi cheer at Greene King amid pubs woe
Greene King today emerged as one of the winners from the carnage in the pub sector, becoming the only mainstream player that is still paying a dividend to shareholders.
The IPA and Speckled Hen brewer, which also runs 1400 pubs, held sales steady at £445 million in the 24 weeks to 19 October. Profit slipped 15% to £60 million but Greene King still feels confident enough to pay the same interim dividend as last year at 7.3p.
Chief executive Rooney Anand admits trading conditions have been tough and are "likely to worsen in the New Year". But Londoners in particular are still drinking, giving him hope he can trade through the recession.
Having rejigged its balance sheet in May, Greene King shouldn't have to refinance until 2012, leaving it with cash to invest in its properties.
"We didn't take the dividend decision lightly, but we are generating over £100 million of operating profit," said Anand.
Rivals such as Punch Taverns and Enterprise Inns have had to abandon payouts to shareholders as debts mount.
Greene King is looking to recruit new sorts of publicans. It is training up former soldiers, and has launched a Public Housewives campaign, with Anand saying women often make the best publicans.
