Wolves posts 5.3 per cent profit rise

Brewer and pub operator Wolverhampton & Dudley has unveiled strong half-year figures, with underlying profits up 5.3 per cent to £31.7m.

In the group's tenanted arm, Union Pub Company, like-for-like sales were up 5.2 per cent and average earnings per pub increase 8.1 per cent.

Wolves managed house division, Pathfinder Pubs, total like-for-like sales growth, including invested pubs, was 2.8 per cent and 0.1 per cent on a purely uninvested basis.

The tenanted and leased pub division comprised 1,132 pubs as at 27 March 2004. Subsequent to the half-year end, 24 smaller managed pubs have transferred from Pathfinder Pubs, which now has 473 outlets. This estate includes high-quality freehold community pubs and 27 Pitcher & Piano bars.

The company's new build programme is also underway, with five community pub sites under development and a further 30 under negotiation, including sites in Kent, Folkestone, Southampton, Ipswich and Cambridgeshire.

The company said that typically, the sites it was buying are freehold and are at the heart of new housing developments. It aims to open 20 new pubs next year.

In the beer brands division, sales were £56.8m compared to £60m last year. Wolves said that adjusting for the impact of ending a large low-margin supply contract last year, underlying turnover increased by 0.2 per cent.

Operating margin increased by one percentage pointto 16 per cent, and operating profit increased by 1.1 per cent to £9.1m.

Over the past four years, £122m of capital has been withdrawn from this division, and return on capital has doubled over the same period.

Chief executive Ralph Findlay (pictured)​ said: "This performance demonstrates that we have good trading momentum. Last year we set ourselves very clear growth targets in each division.

"These targets are principally based on investment in our estate combined with the profitable acquisition of new pubs and sites for development, and I am pleased with progress made to date.

"We have a high quality portfolio of assets, providing anexcellent platform from which to continue to implement our strategy of profitable growth."