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.

Greene King has released decent half year results with revenues rising 9% to Â£527.5m and pretax profit increasing nearly 6% to Â£77.2m. Eps was up almost 7% to 26.9p while the dividend rose 0.4p to 6.7p. Net debt rose nearly Â£92m to Â£1.5bn after spending Â£113m on acquisitions, by far the largest being September's Â£96m purchase of The Capital Pub Company. That said, strong cash flow improved interest cover from 2.7 to 3 times, while only Â£230m of its Â£400m revolving credit facility was utilised. Within managed pubs operating profit rose almost 10% to Â£70.7m, with EBITDA per site improving almost 4% to Â£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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2012 NAPS - Seven selections

Fenner - Industrial engineer sees huge eps growth thanks to mining boom

Greene King - Organic growth slows (September 2015)

Greene King (December 2014)

Greene King (August 2014)

Greene King - Large disposal of non-core pubs (June 2014)

Greene King - Shares heading for Â£10 (February 2014)

Greene King - Scorching summer boosts trade (October 2013)

Greene King - Heat wave should boost pub sales (August 2013)

Greene King - Gains since recommendation: 88% (June 2013)

Greene King - Shares hit new high of 675p (February 2013)

Greene King (October 2012)

Greene King - Shares hit three-year high (August 2012)

Greene King (June 2012)

Greene King (March 2012)

Greene King - Managed pubs doing well (October 2011)

Greene King (September 2011)

Greene King - 4.9% jump in managed pub like-for-like sales (August 2011)

Greene King - 8.2% jump in like-for-like sales (June 2011)

Greene King - Best in class pubs firm offers strong medium-term growth opportunity (April 2011)

Greene King - Acquires Cloverleaf (March 2011)

Greene King - To expand managed pubs business (August 2010)

Greene King (June 2010)

Greene King - Strong Christmas trading (March 2010)

Greene King - Managed pubs growing well (January 2010)

Greene King - Trading more upbeat (October 2009)

Greene King - Resilient final results (August 2009)

Greene King - 3:5 rights issue at 270p (May 2009)

Greene King - Well financed pubs operator over-sold on prospective PE of 6.3 (March 2009)

Greene King - Well run pub operator on PE of just 5.4 (December 2008)

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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