Greene King profits up but warns a Brexit may hit consumers

Pub group Greene King boost profits after Spirit takeover but warns Brexit vote will knock consumer spending.

Greene King beer pump and pint of beer are seen in a pub in central London — Greene King sees annual profits jump after its takeover of rival Spirit. Reuters

Pub operator Greene King warned the result of the 23 June EU referendum may lead to drinkers sinking fewer pints as consumer confidence takes a knock.

Chief executive Rooney Anand said: "It is likely that consumer confidence will be affected by Brexit in the near-term".

However, the firm posted a strong set of annual results in the wake of its £774m acquisition of rival Spirit last year, as revenues jumped 57.6% to £2bn in the 12 months to May 1.

Pre-tax profit lifted 52.2% to £256.5m in the same period. Anand added: "Greene King has a strong track record of performing well in challenging conditions."

Since the completion of its takeover of Spirit last June, the Bury St. Edmund-based group now owns 3,035 pubs, restaurants and hotels across the country.

Nicholas Hyett, equity analyst at broker Hargreaves Lansdown said: "Overall, this looks like a good start for the combined group, though as with many businesses the economic impact of the Brexit vote remains to be seen."

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