Sales in Wolves pubs bring cheer

WOLVERHAMPTON & Dudley Breweries today said the multi-million pound investment to spruce up its pubs was paying off as it served up sales growth 'among the best in the industry'.

Sales in its managed and tenanted pubs rose by 3.6% and 2.7% respectively in the 12 months to 27 September despite strong performances in the year-earlier period.

Chief executive Ralph Findlay said Wolves was benefiting from its focus on sites with a 'broad consumer appeal' and female-friendly concept bars such as Bostin Local and Service That Suits Me. New menus and refits had raised food sales at its Pitcher and Piano chain.

The brewing arm, home to Marston's Pedigree, Banks's and Mansfield, had also benefited from a marketing push with Pedigree now the number two premium ale after overtaking Bass in the last quarter.

Pre-tax profits rose 1.5% to £59.6m and the operating margin rose from 21.6% to 22.1%. Findlay said it aimed to maintain margins despite higher costs from the forthcoming rise in the minimum wage.

He added: 'We now aim to invest more in new pubs, sites and refurbishments that fit our business model.'

Shareholders will pick up a total dividend of 32.1p, up 10.1%. The shares added 3p to 754p.