Greene King: "We're stronger now than before the recession began

Suffolk brewer Greene King claims it is in better condition to withstand whatever else the recession has to throw at it than before the credit crunch kicked off last year.

While it said the much-talked about consumer recovery is "fragile" and warned there were "numerous risks" to current levels of consumer spending in the second half of the group's financial year, its businesses were "undoubtedly stronger" than before the start of the consumer downturn.

The brewer said its managed pubs saw turnover for the 17 weeks to August 30, 2009, up 4.6 per cent, driven by strong food sales, up 8.1 per cent.

The group said it expected the like-for-like performance across its managed pub business to "moderate" due to tougher year-on-year comparatives.

Its tenanted and leased pubs saw average earnings before interest, tax, depreciation and amortisation was down 7.2 per cent at the 16 week point.

While beer volumes had "improved" across the division these had been partially offset by increased licensee support through its 'Crunch Time' initiative, the group said.

Own-brewed volumes were up 12 per cent, with Belhaven putting in a near-15 per cent increase in the 17 week period.

Greene King said it had spent £45m of the £207m it raised through its recent rights issue; £13.4m on buying back debt and £31.6m on buying pubs, notably 11 sites from Punch Taverns.

It said it had sold 37 pubs, and had reduced the number of closed pubs from 30 at the year-end to 15.

Greene King's shares were up 13.6p at 494p this morning.