Wolverhampton & Dudley has reported a five per cent rise in like-for-like sales in its managed pub estate.
The lift, partly due to strong food sales, was measured through its 550-strong core managed estate during the 16 weeks to January 19, the first part of its financial year.
Chief executive Ralph Findlay said: "Overall trading has been quite encouraging. Our food sales were especially good and gave clear evidence that people want to go out and eat at local community pubs."
The Wolves chief added that trading over Christmas and New Year had been satisfactory. He also felt the sales figures over the longer 16-week period gave a clearer indication of the group's performance. Most companies released sales figures for a four to six week period around December.
W&DB also won the backing of shareholders for the payment of a special 80p dividend, which will see it return £76m to shareholders.
It will return another £24m in the form of a share buy-back and then plans a further £100m buy-back in April 2003.
Mr Findlay said that talks were continuing on the sale of Pitcher & Piano, but reiterated that the company was not a forced seller of the chain.
Wolves is currently converting some of its managed estate to its Bostin Locals division - Bostin is a black country expression meaning great. The company has opened 10 this financial year with a further 28 planned. It will invest £200m over the next five years on Bostins.