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Authoritative Independent Monthly Share Selections Using Technical & Fundamental Analysis

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Secondary Recommendation

Greene King - Shares finally wake up

February 2012

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

  • Epic Code:
  • GNK
  • Price:
  • 520p
Greene King has released decent half year results with revenues rising 9% to £527.5m and pretax profit increasing nearly 6% to £77.2m. Eps was up almost 7% to 26.9p while the dividend rose 0.4p to 6.7p. Net debt rose nearly £92m to £1.5bn after spending £113m on acquisitions, by far the largest being September's £96m purchase of The Capital Pub Company. That said, strong cash flow improved interest cover from 2.7 to 3 times, while only £230m of its £400m revolving credit facility was utilised. Within managed pubs operating profit rose almost 10% to £70.7m, with EBITDA per site improving almost 4% to £97.3m. Like-for-like sales in drink rose 3%, with food rising 4.9%, although operating margin fell 0.4% to 19.2% due to hi ...

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Greene King - Best in class pubs firm offers strong medium-term growth opportunity (April 2011)
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With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

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