Wolves plans 20 new managed pubs a year

Wolverhampton & Dudley Breweries plans to bolster its managed pub division with the construction of 20 new pubs each year.

The brewer and pub operator is currently building three pubs and is in discussion on a further 28 sites.

Chief executive Ralph Findlay said: "We are comfortable with building about 20 a year but we will look to how we can do more than that.

"We are developing relationships with [house] building companies and want to demonstrate that we can move quickly because that will put us in a good position."

Wolves was expected to embark on new builds but the aggressive rate of development goes far beyond previous predictions.

Mr Findlay said the new sites accompanied new housing estates and were typically in areas where the company did not have a strong foothold, such as Cambridgeshire, Kent and the North East.

The W&DB boss also said he believed there was still plenty of opportunities for package acquisitions.

The news came as Wolves updated the market on current trading, showing strong like-for-like sales figures. Like-for-likes were ahead 2.8 per cent in its managed arm, Pathfinder Pubs.

Earlier this month 25 pubs were transferred from Pathfinder Pubs to the tenanted division, Union Pub Company. UPC has completed or exchanged contracts on the purchase of 11 pubs, and negotiations for a further nine are at an advanced stage.

Like-for-like turnover was up 5.2 per cent in UPC, fuelled by the growing number of long leases in the business. From a standing start 18 months ago, UPC now has 400 licensees on a 21-year lease and plans to convert a further 300 during the next two years.