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Greene King Finals.

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idpickering
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Greene King Finals.

#232263

Postby idpickering » June 27th, 2019, 7:24 am

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

idpickering
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Re: Greene King Finals.

#232277

Postby idpickering » June 27th, 2019, 9:07 am

This has quite obviously gone down well, with the SP up 3.6% as I type. I hold Greene King in my HYP, alongside Marston's in the sector. I'm fully invested in both, and am not considering topping up either currently.

Ian.

blobby
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Re: Greene King Finals.

#232280

Postby blobby » June 27th, 2019, 9:21 am

It’s nice to see GNK doing well today. My pub companies MARS and MAB have also been doing well for some time now. The sector is still good value IMO.

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Re: Greene King Finals.

#232282

Postby scrumpyjack » June 27th, 2019, 9:25 am

The recent sharp drop in the sp seems to have been triggered by the very bearish analyst at Berenberg. The same thing happened last year (also the Berenberg analyst report) as I recall and the sp dropped sharply but then recovered after the results were not nearly as bad as the analysts forecast.

Deja vu all over again?

idpickering
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Re: Greene King Finals.

#232289

Postby idpickering » June 27th, 2019, 9:56 am

I agree with you both thanks. If I wasn’t fully invested I must admit that I might’ve bought more of both GNK and MARS. So long term holds on both for me, as any good HYPer should be doing. Fickle fingers make for bad HYPing, although we’re only human of course.

Ian.

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Re: Greene King Finals.

#232353

Postby Arborbridge » June 27th, 2019, 3:52 pm

Why do companies always use the circuitous "in line with last year" when they mean "the same as last year". The must feel it sounds better: why not just be direct and honest - or is there a subtle difference I hadn't appreciated?


Arb.

blobby
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Re: Greene King Finals.

#232361

Postby blobby » June 27th, 2019, 4:26 pm

This report seems a lot more negative than I feel:

https://www.proactiveinvestors.co.uk/co ... 22936.html

It reads like an article which was written before the news is announced, but I've not looked at the detail so I could be missing something.

idpickering
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Re: Greene King Finals.

#232370

Postby idpickering » June 27th, 2019, 4:58 pm

The 'held' dividend is disappointing I grant you, but the 6% rise in sp today was welcome. I shall continue to hold in my HYP.

Ian.

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Re: Greene King Finals.

#232395

Postby Gengulphus » June 27th, 2019, 8:05 pm

Arborbridge wrote:Why do companies always use the circuitous "in line with last year" when they mean "the same as last year". The must feel it sounds better: why not just be direct and honest - or is there a subtle difference I hadn't appreciated?

I'd guess that it arose for talking about accouting figures like earnings, which are rarely exactly the same as the previous year - so saying that they were "the same as last year" would not be strictly true. And "about the same as last year" would have invited comments from naïve investors along the lines of "About??? Not good enough - you're an accountant and supposed to come up with exact figures!"... So people came up with "in line with" as a convenient phrase that doesn't actually mean "the same as" but isn't quite as obviously imprecise! And it's a useful phrase, especially for describing accounting figures that are about the same but slightly worse - if they're slightly better, the phrase "as small increase on" (or "a small decrease on" for figures like debt) seems to be preferred... So using "in line with last year" has probably simply entered the writing style of financial directors and their staff, and tends to get used unthinkingly even for exact figures like dividends per share that really are the same as last year.

As I said, a guess - but it's in line with :-) the way such things tend to work in practice.

Gengulphus


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