Belhaven to celebrate 300th birthday

● Brewery’s Belhaven Best is No 1 draught ale north of the Border

King is expecting costs to rise by between £45m and £50m. To offset some of this, it is targeting savings of between £30m and £35m, much of it in areas such as procurement.

Paul Hickman, analyst at Edison Investment Research, said the group had been “somewhat battered” by the inflationary pressures and weaker consumer demand.

“Unfortunately, last year’s adverse trading conditions are giving way to more of the same in the current trading year,” he said.

“Pub operators face demanding and cost-conscious customers who require convenience and speed of service, and are increasingly aware of health and ask for fresh produce.

“The good news is that current period sales in the managed pub company operation were ahead 2.2 per cent for the last eight weeks, when admittedly the weather has been pretty helpful.”

Nicholas Hyett at Hargreaves Lansdown added: “A sprawling pub portfolio means debt still looks manageable. Despite the tough trading conditions, debt is actually falling, and while dividends might not be going anywhere quickly, they look fairly secure for the time being. That could make the 5.3 per cent dividend yield quite attractive.”