paddingtonbear
29 Nov 2018
Cash cover Good day Games. Agree with your analysis of the solid results, but there are two clouds on my horizon. Firstly, in a period of tightening credit, why is it taking so long to revamp the Spirit debt (less than half so far) and second the end of the Rooney era [insert football jokes here]. If we accept Spirit deal will pay off eventually, the CEO has done a fine job overall and over a long time period. The choice of successor will be crucial given the possibility of a long overdue UK recession starting next Spring. It seems likely these shares will have to be re-assessed soon after that announcement to see if they still qualify as being in my “comfy slippers†category. Gla PB.
Old_Eyes
29 Nov 2018
Cash cover Gamesinvestor1: Brewing and brands grew 7.5% so that’s well ahead of the market surely - lots of IPA, OldSpeck and all the new fancy names I guess. They do need to start exploiting the craft beer boom. People seem to be more than happy to spend over £2.50 on a 330ml can in the supermarket, or £6 on a pint in the City, if it’s some new fashionable beer, rather than half that on the IPA and Old Speckle. Big margins here. Although I’m sure the board is well aware of that.
Old_Eyes
29 Nov 2018
1/2 Year Results It is amazing what an impact the hot summer and the World Cup have had, especially as the business has absolutely no control over these. With the England team on the up, can we expect a good set of results in 2020 on the back of the Euros? Joking apart, nice improvements in a lot of areas.
Gamesinvestor1
29 Nov 2018
Cash cover This is the comforting part :- “â€â€œWe remain highly cash generative, meeting our debt repayment requirements, investing in our pubs and paying an attractive, sustainable dividend out of operating free cashflow.â€" Dividend held. Poor part was that the debt remained the same at 4.2X EBITDA and the ROCE dropped 1/2 a point to 8.5 but statutory profit was up 3.2%. Brewing and brands grew 7.5% so that’s well ahead of the market surely - lots of IPA, OldSpeck and all the new fancy names I guess. Mixed but leaning to the positive overall. Games
Gamesinvestor1
29 Nov 2018
1/2 Year Results At last, a positive set of results it seems. [link] Continued LFL sales momentum in Pub Company • Pub Company like-for-like (LFL) sales up 2.7%, ahead of the market4 up 1.1% • Driven by the ongoing benefits from our investment in value, service and quality (VSQ), our strategic focus on four core brands, and boosted by good weather and the World Cup • Pub Partners LFL net income up; Brewing & Brands revenue up 7.5% Consistent cash generation, disciplined capital allocation & attractive property valuation • Operating cash generated5 covers scheduled debt repayment, core capex and dividends • Further steps taken to refinance Spirit debenture, reducing cost and increasing flexibility of our debt; to date annualised cash interest saving c.£13m and net present value benefit c.£45m • Interim dividend maintained at 8.8p per share; dividend cover5 of 1.9x • Estate optimisation; tail disposal proceeds fund new builds, helping to grow average weekly take in Pub Company by 7.9% over the last three years • Pub estate valuation supports maintained leverage; market value of £4.5bn Current trading and outlook • LFL sales in Pub Company were up 2.9% at week 30; Pub Partners and Brewing & Brands performing in line with expectations • Christmas bookings well ahead of last year • Remain on track to limit full year net cost inflation to £10-20m Games
barnetoaklea
14 Sep 2018
Vouchers Just received the Vouchers from HL where the shares are held in my SIPP. one voucher for each month that can be used 5 times in the month.
Gamesinvestor1
11 Sep 2018
Vouchers Old Eyes, were these sent to you via your broker (platform - AJ Bell or Hargreaves etc), or direct to you from the secretary at Greene King? Not been successful at getting any response from GNK even though I wrote a long message explaining what I think are benefits from having shareholders take their friends and families to GNK pubs and restaurants – the managment are not very switched on or responsive, which is in itself a worry. Games
Gamesinvestor1
11 Sep 2018
Vouchers OE - I just recommended your post, as there are so few to recommend these days - most people seem to have just left the site. I notice the little heart symbol is missing from the bottom of my own posts - anybody any reason why that might be? Or has ii decided that anything I post isn’t worthy of an up tick so just removed the symbol - lol !! Games
sueneave9
11 Sep 2018
Vouchers I am really cheesed off with GKN - Not only does my SIPP not entitle me to vouchers but their share price has been dropping for months. I have sold some to cut my losses and invested elsewhere.
sueneave9
11 Sep 2018
Vouchers My SIPP provider - through II says I am not entitled to Vouchers - I have taken it up with GKN and they have been unhelpful - it’s something to do with HMRC apparently. All v annoying- I agree with you, it does encourage you to spend money in their establishments or buy their beer in the supermarket. Your heart tick shows on my page, by the way.
Old_Eyes
11 Sep 2018
Vouchers I use iWeb Sharedealing. It’s a basic forum, compared to many, but has cheap fees and suitable for my needs. I just re-edited my post to read: Now you get 12 vouchers (one voucher for each month*) that can be used 5 times and 25% off. Very pleased indeed. *it had previously suggested 12 vouchers a month. It’s a book of 12 vouchers, one for each month, that can be used 5 times in each month. If that makes sense.
Old_Eyes
11 Sep 2018
Vouchers Thanks Games. If you work in the City, I’ll buy a beer with the use of one of these vouchers. The Red Lion between Moorgate and Liverpool St is a very good GK pub.
Old_Eyes
07 Sep 2018
Trading Update Great news. A long overdue bit of good news, where GNK is concerned. A big thank you to Gareth Southgate, I suppose.
Hydrogen_Economy
07 Sep 2018
Trading Update GNK SP driven up by TU - sales up. Can they hold up as the hot summer and world cup memories fade? H2 7th September 2018 Q1 AND AGM TRADING UPDATE Trading statement for the 18 weeks to 2nd September 2018 At its AGM today, Greene King will make the following trading statement for the 18 weeks to 2nd September 2018. The positive momentum in Pub Company continued through the summer with like-for-like (LFL) sales up 2.8% for the first 18 weeks of the year, ahead of the market1 which was up 1.2%. Growth over the last 10 weeks was 3.2%. This strong performance was underpinned by the ongoing benefits from our sales driving investment to further improve our Value, Service and Quality, and boosted by the weather and a successful World Cup. Our Greene King branded local pubs traded particularly well with LFL sales of +5.5%, driven by very strong LFL drink growth. 3.7m pints of beer were sold in total during England’s seven World Cup matches and LFL sales on the day of the semi-final were up 61%. LFL net profit in Pub Partners was -0.4% after 16 weeks, impacted by the timing of higher overhead costs which we expect to balance out over the year. Total beer volumes in Brewing & Brands were up 4.0% and own-brewed volumes were up 0.3%. Our cost mitigation programme to help offset gross cost inflation of c.£45-50m is on track and we are making good progress with our refinancing programme, which will reduce the cost of debt and increase flexibility. We remain on course to dispose of 100-110 pubs this year and expect to open around nine new pubs. We continue to focus on profitably driving top line growth, developing a more streamlined and efficient organisation and further strengthening our capital structure to deliver long-term value creation for our shareholders.
Gamesinvestor1
07 Sep 2018
Trading Update Looks pretty good - stock up 13+% – somewhat of a relief after the recent long period of vicious decline. At its AGM today, Greene King will make the following trading statement for the 18 weeks to 2nd September 2018. The positive momentum in Pub Company continued through the summer with like-for-like (LFL) sales up 2.8% for the first 18 weeks of the year, ahead of the market1 which was up 1.2%. Growth over the last 10 weeks was 3.2%. This strong performance was underpinned by the ongoing benefits from our sales driving investment to further improve our Value, Service and Quality, and boosted by the weather and a successful World Cup. Our Greene King branded local pubs traded particularly well with LFL sales of +5.5%, driven by very strong LFL drink growth. 3.7m pints of beer were sold in total during England’s seven World Cup matches and LFL sales on the day of the semi-final were up 61%. LFL net profit in Pub Partners was -0.4% after 16 weeks, impacted by the timing of higher overhead costs which we expect to balance out over the year. Total beer volumes in Brewing & Brands were up 4.0% and own-brewed volumes were up 0.3%. Our cost mitigation programme to help offset gross cost inflation of c.£45-50m is on track and we are making good progress with our refinancing programme, which will reduce the cost of debt and increase flexibility. We remain on course to dispose of 100-110 pubs this year and expect to open around nine new pubs. We continue to focus on profitably driving top line growth, developing a more streamlined and efficient organisation and further strengthening our capital structure to deliver long-term value creation for our shareholders.
