Greene King, the brewer and pub operator, has reported a 20% increase in pre-tax profit to £67.1m for the 24 weeks to 15 October, driven by the integration of acquisitions Belhaven and Hardys & Hansons. Sales were up 16% to £419.2m, with operating profit up 17% to £100.9m. Operating profit margin grew from 24.0% to 24.1%. The group said that the results were boosted by a full 24 weeks trading from Belhaven, which it acquired in October last year, and a six-week contribution from Hardys, which it acquired in September this year. Like-for-like sales in Pub Company, the company’s managed estate and Pub Partners, the group’s tenanted/leased portfolio were up 3.3% and 1% respectively on the prior year. Currently the company said that like-for-like sales in Pub Company and Pub Partners were up 3.5% and 1% respectively, to 26 November. However, Belhaven’s 30-week retail sales are down 2.8% on last year. Smoking was banned in March in Scotland. Rooney Anand, chief executive, said: “We have benefited from our acquisition of Belhaven, which is proving a great addition to Greene King. In the second half there will be a full contribution from Hardys, which is performing well, and integration is on track. “Trading in all our divisions remains in line with expectations.” For the 24 weeks to 15 October, turnover at the company’s managed houses was down 1.0% to £241.3m. Operating profit was up 3%, and operating profit margin improved from 20.6% to 21.5%. The company said that the drop in turnover was due to its ongoing transfer of pubs from managed to tenanted and leased. During the period 16 pubs were transferred to Pub Partners, one to Belhaven, while 10 were disposed of, leaving the estate with 734 pubs. An average of 741 pubs traded in Pub Company during the period delivering an average of £151,800 annualised operating profit per pub, a 9% increase on the previous year. The company invested £14.6m in its managed estate during the period. At Pub Partners turnover rose by 3% to £72m, while operating profit increased by 11.0% to £33m, and operating profit margin rose from 42.7% to 45.8%. Annualised average operating profit per pub rose 5% from £50,100 to £52,400. The company sold 11 pubs out of Pub Partners during the period and 16 were transferred from Pub Company, taking the estate to 1,359 sites. Revenue at Belhaven, its Scottish division, was £55.8m for the 24 weeks, up 8% on the pervious year. Operating profit stood at £11.5m, while operating profit margin was 20.6%. Like-for-like retail sales were 2.6% lower than the previous year, but were better than company’s expectations. Revenue in Hardys for the six weeks since it was acquired was £9.2m, while operating profit was £1.9m. The company said that it estimated the synergies from its acquisition of Hardys to total £5m, of which £3m will come in the first year. Revenue through its Brewing Company showed a small decrease from £41.1m to £40.9m, while operating profit increased by 2%, and operating profit margin grew from 23.8% to 24.4%. The company said that it experienced a consumer switch from ale to lager during the summer, with own-brewed ale volumes declining by 1% during the 24 week period, while total beer volume, including lagers, was up year on year. Alan Bowkett retired from the board on 1 September, after serving 12 years as non-executive director. The company said it was well placed for next summer’s smoking ban, with 95% of its estate having an outside space.