Greene King's traditional favourites

The company said profits before taxes and financial charges for the year to early May came in at �75m, up 8% on the previous year.

Sales were also up, climbing 8% on the year to �535.6m.

The figures, which were in line with forecasts, bucked gloomy trends in the pubs and brewing industry, which has been hit by cautious consumer spending.

City investors welcomed the news, marking Greene King shares 3.3% higher to 821.5p in early trade.

Cheers

Greene King, maker of pub favourites such as Abbott Ales and Old Speckled Hen, described its performance as "healthy," and pledged further growth in the months ahead.

"The company is in good shape. We are confident that we can continue to generate attractive returns for our shareholders," said Greene King chief executive Tim Bridge.

Greene King added that it had made a good start to the new financial year, with sales excluding newly opened pubs up 1% in the eight weeks to late June.

The company confirmed that its stronger results in the latest financial year partly reflected the contribution of the Morrells business, which runs 107 pubs in and around Oxford.