HIGHLIGHTS
Profit growth through strong LFL sales and ongoing cost mitigation programme
•Pub Company like-for-like (LFL) sales ahead of the market at +2.9%, driven by effective investments in value, service and quality (VSQ), our four core brand focus and boosted by the good weather and successful World Cup
•Further improvements made in TripAdvisor and Net Promoter Scores (NPS)
•Pub Company operating margin flat year on year at 15.2%
•Pub Partners LFL net income +1.5% and LFL net profit -0.3%; Brewing & Brands revenue up 5.8%
•£35m mitigation achieved, limiting cost inflation to £14m; adjusted profit before tax1,2 +1.6% to £246.9m
Strong operating cash flow covers debt repayment, core capex and dividends
•Net debt to EBITDA1,2 reduced to 4.0x; targeting continued deleveraging
•Spirit debenture 51% repaid since F17, reducing cost and increasing flexibility of our debt; Greene King securitisation tapped for £250m at 3.6%
•Consistent five to six year capex programme delivering returns of over 30%
•Dividend per share of 33.2p; long-term track record of attractive, sustainable dividend
Clear near-term priorities and ongoing cost mitigation support confidence in full year
•Trading over the first eight weeks was impacted by the poor weather
•Clear near-term priorities in place to drive sales and efficiencies
•Ongoing mitigation programme to limit net cost inflation to £10-20m in F20
•Further progress made refinancing Spirit debenture since start of new financial year
Later;
DIVIDEND
The board has recommended a final dividend of 24.4 pence per share, in line with last year, subject to shareholder approval. This will be paid on 13 September 2019 to shareholders on the register at the close of business on 9 August 2019.
The proposed final dividend brings the total dividend for the year to 33.2 pence per share, in line with last year. This is in keeping with the board’s policy of maintaining dividend cover of around two times underlying earnings, while continuing to invest for future growth.
https://www.greeneking.co.uk/media/4189 ... -final.pdf