BELHAVEN owner Greene King is poised to report flat profits, but the City is hopeful that its recently completed £774 million merger with rival Spirit could inject some fizz.
Analysts expect the firm, which owns Hungry Horse and Loch Fyne Seafood and Grill, to post a slight dip in earnings to about £167 million, reflecting weaker trading and lower margins in its managed pubs.
But brokers have high hopes for the merger with Spirit, which completed last week.
The move brings together Greene King’s 1,900 pubs, restaurants and a small number of hotels in the UK. Its brands also include Eating Inn, Farmhouse Inns and Flame Grill.
These outlets will be joined by Spirit’s 1,200 or so pubs across the UK and its brands include Chef & Brewer and Fayre & Square.
Analysts will want to know more about plans for the bigger Greene King. Shore Capital noted: “We see the completion of its merger with Spirit Group providing faster earnings growth and greater visibility.”