Greene King is moving on

Mr Anand says future success lies in understanding the shifting nature of consumer behaviour. The emerging trends are complex. Demand for premium products is at an all-time high, but at the same time value-conscious customers are a significant by-product of the recession. As a result, management is scrutinising what Greene King serves at its restaurants and pubs. Last year, it upgraded the quality of its burgers and steaks, and added more healthy options to its menu. It also rolled out a 'two courses for £3.99' offer for over-60s at Meet & Eat sites, and 'Little Hooves Tuesday' in Hungry Horse, so children eat for £1 with every adult meal purchased.

Another trend is the 'digitalisation of leisure' - simply put, the growing use of technology by Greene King customers. The company's investment in digital platforms, including websites and smartphone apps, is now paying off: website traffic grew 59 per cent last year, while visits via mobile devices grew 97 per cent to 4.4m.

Meanwhile, the purge of the tenanted Pub Partners division continues. Post year-end, the company netted £32m by selling 275 sites to Hawthorne Leisure, bringing the portfolio down to 890. Mr Anand says his goal is to have 750 tenanted sites, which will involve selling 30 to 50 sites a year.

One unambiguously positive development is the easing of tensions with HMRC. While a dispute with the tax authorities over a £7m VAT refund on gaming duty rages on, a tax credit worth £31m (arising from a reduction in the rate of corporation tax) helped offset high disposal costs.

Brokerage Numis expects pre-tax profits of £181m for the current financial year, giving EPS of 65.1p.