Share tip of the week: Greene King

Every single week we look at a promising share listed in the FTSE 250. This week: Greene King, the brewer

  Photograph: Reuters

Shares in Greene King, the brewer, have been below strain in 2014, but some fund managers see the damaging sentiment attached to the company as a purchasing possibility.

Margaret Lawson, manager of the SVM United kingdom Growth fund, explained the firm has ambitious programs to increase its restaurant empire, which contains manufacturers such as Hungry Horse and Previous English Inns in its steady.

Ms Lawson said the restaurant businesses are frequently ignored by market instead fixated on trading figures for the firm’s 220 pubs.

Fears that the pub sector is a dying market has weighed down the share price, which has misplaced 5pc in excess of the previous 12 months, to trade at 840p.

“While several will be conscious of the company’s several brand names of beer this kind of as Previous Speckled Hen, the restaurant organizations account for the majority of revenue,” explained Ms Lawson.

The firm has in excess of 1,000 web sites and also operates a pub partners company in which tenants operate pubs beneath a quasi-franchise type model,” said Ms Lawson. “Management are plainly keen to proceed the expansion of the owned pub business and are searching for to grow the estate by all around 30 websites per annum.”

Ms Lawson pointed out that the firm is a fairly “safe” bet, backed up by its property holdings. An additional attraction is the firm’s dividend yield of 4pc. In an update at the begin of the month the group reported general revenue rising by 9.4pc to £158m.

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