BREWER Greene King has seen half-year profits rise ten per cent to £38.6m.

The maker of Abbot Ale and Old Speckled Hen said business had been encouraging since October, with beer sales maintaining their growth momentum, along with higher returns from its pubs estate.

Greene King, which has divisions covering brewing as well as tenanted and managed pubs, said sales of its cask ale brands grew six per cent during the 24 weeks to October 19, despite the heatwave increasing the appeal of other drinks.

Efforts to improve returns from its managed pubs estate, which saw 28 inns sold or transferred to tenants during the period, paid off, with trading profits from the 551 inns up four per cent to £26.6m.

Beer sales at its 1,135 tenanted and leased pubs were up five per cent in the 24 weeks, contributing to growth in trading profits in the division of 12 per cent to £22.1m.

Chief executive Tim Bridge said: "These results demonstrate that our company is in good health."

Turnover from brewing rose 13 per cent to £49.4m during the period, and pre-tax profits rose to £35.6m from £32m a year earlier.