Greene King brewer profits fall

Greene King is one of the UK's largest beer and pub groups

Suffolk-based brewer and pub owner Greene King said its half-year profits had fallen 15.2% in one of the toughest trading periods for "many years".

The firm, which has 1,800 pubs across the UK, said it expected trading conditions to worsen in the new year.

But chief executive Rooney Anand said he was confident the firm could withstand the economic downturn.

It comes as pubs chain JD Wetherspoon said 200 jobs had been created after it invested �5m in opening five new pubs.

Greene King reported a surplus of �60.7m for the 24 weeks to 19 October.

Mr Anand said: "I believe the environment will become even more challenging in the near-term as we are yet to see the full impact on discretionary spend of rising unemployment, increasing negative housing equity and continued high consumer debt levels.

"However, I remain firmly of the view that Greene King can withstand these factors."

Greene King's retail division includes the Loch Fyne restaurant chain and the Hungry Horse outlets.

The company has offered support worth �1.8 million to 320 pubs, through rent concessions, service charge waivers and other benefits.

The Wetherspoon outlets at Minehead, Bodmin, Doncaster, Oldham and Sutton are due to open at the end of next week and take the company's UK estate to 713 outlets.

Chief executive John Hutson said 20 new openings had been achieved since early August.

"It has enabled us to create approximately 1,000 new jobs despite the downturn in the economy," he said.