Belhaven team performs strongly again for Greene King

Brewer and pub chain Greene King said yesterday its Scottish Belhaven business was making substantially larger profits than at the time of its acquisition by the group four years ago.

Greene King, which has been brewing beer and operating pubs for more than 200 years, said Dunbar-based Belhaven was generating profits 50% above the level reported in 2005.

Belhaven’s operating surplus grew nearly 12% to a record £30.2million in the year to May 3, against £27million in 2007-08, with revenue increasing by 9.9% to £136million.

Posting its latest annual results, Greene King said the Belhaven team had yet again performed very strongly despite demanding conditions and a change in the senior management, with Euan Venters taking over as managing director following the retirement of Stuart Ross.

The group added it was cautious about the outlook for the Scottish business, mainly because of the impact of the recession on public-sector employment north of the border.

Greene King chief executive Rooney Anand said: “Belhaven’s retail operations went from strength to strength during the year.

“By the year-end, like-for-like sales were up 5.4%.”

Belhaven’s retail business – it owned 325 pubs at the year-end – was boosted by like-for-like sales growth of 16% for food and 2.6% for alcohol.

Food sales, which now account for 25% of Belhaven’s retail revenue, were up 49%.

Greene King said beer brand Belhaven Best had a 11.5% share of Scotland’s on-trade ale sales, with increased volume defying a severe downturn in the market.

The group grew its Loch Fyne Restaurant (LFR) chain – acquired for £68.1million in August 2007 – to 48 outlets during the year, opening four new sites and converting five existing Greene King operations.

LFR has its roots in an oyster-farming business at Cairndow on the shores of Loch Fyne, Argyll.

Pre-tax profits across the group were down 15% to £118.5million in the year to May 3 but higher than expected at the time of its recent £200million rights issue.

Greene King, which has almost 2,200 pubs, has used the cash call to bolster its pub estate in the downturn in addition to slashing debt by £46million.

After a difficult two years in which the recession has heaped even more pressure on trading after the smoking ban and two poor summers, the firm said the sector was polarising into stronger and weaker players.