When you have been making and selling beer since 1799, you would not have thought some late summer shabby weather would have been a huge concern but Greene King (GNK) warned last Friday that too much rain since late July had hit sales, with the shares fall reflecting the proximity to the good spring and early summer trading comments released in late June. The current grinding nature of the Brexit debate has certainly induced concerns about trading conditions for any company exposed to the UK consumer and, for pubs specifically, the need to offer living wages and supermarket competition continue to impact. However the better news is that a company that has been selling beer since 1799 has learnt a few tricks to get through challenging times. The ongoing integration of the Spirit pubs they purchased continues to yield savings and the 5%+ dividend yield does not look under threat given strong freehold property asset backing. Of course investment research is always essential. Does anyone have any ideas about how to research a brewing and pub organisation? You never know the sun may come out too.

Chris.bailey@danielstewart.co.uk
CIO Dynamic Opportunities Fund