Pub troubles brewing as Greene King slumps 16pc

FEWER drinkers spent their summer afternoons down the pub this year due to the rising price of booze and drizzly weather, according to Greene King.

The brewer and pub operator, which owns brands such as Hungry Horse and Flaming Grill, fell 15.7pc, or 103.5p, to 555.5p yesterday after revealing that its trading has declined since a downturn in the weather in July.

The Suffolk- based business, founded in 1799, said it expects weak consumer confidence, increasing costs, and growing competition to hamper its figures going forward.

Greene King said it was able to offset some of the decline by cutting costs by £45m so far this year, and is strengthening its customer offering by improving food quality across its pubs.

But with the likes of Fuller, Smith & Turner and Revolution Bars also complaining of a tough trading environment in recent months, Deutsche Bank said Greene King should be cashing in on the weakness of its peers. ‘We believe Greene King is relatively better positioned than its peers, given the strong balance sheet and cash flow,’ the broker said in a ‘buy’ note.

Regardless, Greene King’s decline sent shockwaves across the UK pub and bar sector, with brewer Marston’s falling 8.5pc, or 9.7p, to 103.8p and Wetherspoon tumbling 5.7pc, or 59.5p, to 992.5p.

Caution among UK consumers also led double glazing firm Safestyle to issue a profit warning, wiping £5.9m off its market value and sending shares to their lowest level in more than two years.

In July, the company warned that uncertain market conditions and weak consumer confidence would lead 2017 profits to be broadly in line with those generated in 2016.

But yesterday, the group said orders have declined even further, with installations across the UK glazing industry as a whole falling 18pc in June and July compared to 2016 as homeowners continue to rein in spending.

In something of a catch-22, Safestyle said efforts to increase order numbers in response to weak trading have led to a jump in operating costs, which is in turn expected to result in a further decline in full-year profits. Shares fell 29.9pc, or 70.5p, to 165p.

Disquiet in the consumer sector did little to assuage the fears of investors, who were already turning bearish on mining stocks as a result of a decline in copper prices. The FTSE 100 fell 0.3pc, or 19.38 points, to 7377.6.

Liberum said the devastation being caused by Hurricanes Harvey and Irma in the US could prove to be a massive boon for tool rental firm Ashtead, which is highly active in the country.

In a ‘buy’ note, the broker said Ashtead is likely to see its profits boosted by both the short-term clear-up efforts and the longer term rebuilding that will undoubtedly be required after the devastation.

‘We would note that Ashtead’s US subsidiary Sunbelt is extremely well positioned to benefit from this incremental demand with 84 stores in Texas and 58 in Florida,’ it said. Shares rose 0.7pc, or 11p, to 1695p. Indian online fashion retailer

Koovs was forced to put out an announcement saying all was all right after its shares mysteriously fell by 10.5pc, or 3.75p, to 32p in afternoon trading.

As well as saying it knew of no reason for the decline, Koovs highlighted that it has now received £8.9m of the £15m funding it requires for 2018, and is now in discussions with another lender to secure the remaining cash.

The fall came just a day after Koovs reported that losses had widened to £19.3m in the year ended March as a result of India’s decision to remove certain bank notes from circulation.