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Three Quick Facts: Greene King, Rentokil Initial and PPHE

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Greene King

Pubs may be having a great run of things right now – England through to the knock out round of the World Cup and the endless sunshine – but Greene King has just published results for the full year, a period which ended in late April. Revenues were as expected by analysts but inflationary pressures are clearly an issue. The company is working hard to find efficiencies in the operation and with consumer sentiment still fragile, now isn’t the time to be hiking prices. June 2018 may well prove to be a vintage month for the industry, but it clearly remains a challenging environment overall.

Rentokil Initial

The Competition and Markets Authority has today announced that it will be referring the merger of Rentokil Initial and Canon Hygiene for an in depth investigation. The two companies are the largest suppliers of washroom services in the UK so there’s concern that the merger could lead to higher prices and lower levels of service. The CMA had already expressed concerns over the deal but no remedial action had been offered. The uncertainty is unlikely to go down well with shareholders.

PPHE

Earnings season will soon be underway but for now we’re still scratching round a little. There is however an interesting note from PPHE, the owner of the Park Plaza Hotel brand. They have just renegotiated financing on four of their UK properties with a 7 year, £45m loan. The interest payable on this is not far off 4.5% a year, which for a secured loan seems a little high.

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This article does not constitute investment advice. Do your own research or consult a professional advisor.

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