Greene King warns over share price drop

The chief executive of Greene King has warned the pub sector that it should prepare itself for consolidation if share prices do not recover and the concerns over raising debt are not eased.

Rooney Anand told Reuters: "I think there will be consolidation if the debt markets come back and share prices stay where they are."

Anand admitted that Greene King had performed in line with rival operators Punch Taverns, Enterprise Inns and JD Wetherspoon, which all reported difficult trading conditions over Christmas and the New Year

But he added said that Greene King was in a position to borrow and that, as he was "pleased" with the performance of restaurant chain Loch Fyne since buying it in August, he would look for similar targets.

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By Christopher Walton

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