Shares in Greene King were down on the FTSE 250 in morning trading despite the brewer and pub owner reporting a rise in pre-tax profit and revenue in the full year ended 1 May.

Revenue in the period was up 6.0 per cent to a record billion pounds, while pre-tax profit was up 13.8 per cent to £140 million.

The group said it would be raising its dividend 7.4 per cent to 23.1 pence per share.

During the period the group opened 47 new retail sites and saw 60 per cent of its total sales accounted for by food.

Rooney Anand, Chief Executive of Greene King, commented, "This has been a very successful year for Greene King, delivering revenue of over £1bn for the first time, record profits and a 7.4% dividend increase. Our Retail business continues to spearhead our growth, as we increase our share of the eating out market. Our Retail expansion strategy is on track with our most recent acquisitions, Cloverleaf and Realpubs, trading well. Our teams across the business have delivered these results by giving our customers compelling value, service and quality and going forward, there are numerous opportunities for further growth.

"Looking ahead, we foresee another testing year. The UK economy continues to face inflationary pressures, impacting on both our customers' spending power and our cost base, and the impact of the government's cutbacks is still to take full effect. However, these results show, through our sales momentum, our Retail expansion strategy and our strong profit conversion, that we can continue to deliver attractive returns to our shareholders."

By 10:45 shares in Greene King were down 4.58 per cent on the FTSE 250 to 494.30 pence per share.