Wolves sales defy the slowdown

WOLVERHAMPTON & Dudley Breweries is shrugging off the slowdown in consumer spending with surging sales at its swathe of pubs and of its own brands of beer.

Delivering a 13.6% rise in pre-tax profits for the 26 weeks to 2 April, chief executive Ralph Findlay said like-for-like trading over the Easter holiday weekend and since the end of the first half 'has been good'.

He added: 'The view we have from consumer spending is informed by outside figures, and undoubtedly it is weakening, but the sort of pubs we have are not in the front line. If you look back, they have performed consistently well through various economic cycles previously.'

Like-for-like sales from more than 1,100 tenanted pubs within its off-High Street Union Pub Company division grew 3% in the 32 weeks to 14 May. Business was up 3.2% over the same period from just under 500 of its managed pubs within its Pathfinder division, including its Pitcher and Piano chain. Volumes of its own beer, including Marston's Pedigree Ale, are up 4.3% on last year.

Group turnover from its 2,270 pubs and beer business, which includes three months' trading from Burtonwood bought at the end of December, rose to £265.8m from £233.9m last time. Pre-tax profits increased 13.6% to £36m, in line with market expectations.

Wolves today completed its acquisition of Jennings Brothers, the Lake District-based brewer and pub owner.