Greene King supports its pubs with sales rising

Greene King showed again today that it is entirely possible to make money from running pubs and selling beer.

The company behind Old English Inns and Old Speckled Hen was able to report a 3.6% rise in sales for the past year, a jump that should translate into a bounce in profits.

Greene King also seems to have a better relationship with its landlords than rivals.

It expects to give out £6 million to support publicans who are struggling, which compares with
£2 million a month at Punch Taverns.

KBC Peel Hunt said Greene King was having a stronger finish to the year than expected and is clearly a quality operator in what has been a struggling sector.

The company raised £200 million from a rights issue last year, of which it has so far spent £86 million on new pubs and bond buybacks.