Laurel purchase boosts Greene King results

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Greene King's £654m acquisition of Laurel's Neighbourhood Pub business helped ramp up the pubco/brewer's financial performance last year.The company...

Greene King's £654m acquisition of Laurel's Neighbourhood Pub business helped ramp up the pubco/brewer's financial performance last year.

The company reported turnover for 2004/05 up 33 per cent to £732.6m, with trading profits increasing by 39 per cent to £155.7m and pre-tax profits up 14 per cent at £94m.

Boosted by the integration of the 432 pubs that formed the Laurel Neighbourhood pub group, Greene King's managed pub arm, Pub Company, saw the average number of pubs it operates rise from 551 to 801 over the period.

The division reported a 50 per cent increase in turnover to £495.9m. Trading profits rose 65 per cent, to £393.8m.

The integration of the Laurel pubs, acquired in August 2004, was finally completed in February this year.

Pub Partners, Greene King's tenanted and leased pub operation, saw trading profits rise 13 per cent to £54m on turnover of £125.1m.

Its brewing division reported trading profits up 11 per cent at £17.8m. The company's IPA cask ale became the UK's number one beer brand last year.

Commenting on the results, chief executive Rooney Anand (pictured) said: "Last year was one of significant progress for the group leading to record results. The acquisition of Laurel, its successful integration and an improved funding structure have made Greene King a stronger business."

Mr Anand said trading in the current year had "begun well for all three of our divisions and is in line with expectations. We have a proven strategy that delivers value for our shareholders and there are exciting opportunities to deliver further growth in the future."

In the eight weeks since May 1, total like-for-like salesin the Pub Company, factoring out the Euro 2004 effect, are up by 1.9 per cent.

In the Pub Partners tenated business, beer sales have improved by 8 per cent, while the Brewing Company's total beer sales by volume are up 3 per cent.

The company's results followed the announcement earlier this week that it had acquired the Ridley's pub and brewing operation for £45.6m.