Acquisitions boost Wolverhampton & Dudley Breweries results

Wolverhampton & Dudley Breweries (W&DB) said turnover grew 9.2 per cent to £281.4m in the six months to April 1 2006, with underlying pre-tax profits up 12.9 per cent £40.2m.

Sales in the managed Pathfinder Pubs business grew nearly four per cent to £153.1m, while the group's tenanted division, the Union Pub Company, saw turnover up 22.7 per cent £86.4m.

WDB Brands' turnover rose five per cent to £41.9m. Operating margins slipped from 20.1 per cent to 19.3 per cent as high-energy prices took their toll.

The group paid an extra £1m in wages during the period after the latest minimum wage hike, while energy cost rises added a further £3m to the brewer's outgoings.

This environment gave rise to the decision to transfer 93 managed pubs over to tenancies, the group said.

W&DB said it will invest £12m in its estate in the next financial year to cope with the impending smoking ban in England and Wales, following the £8m it says it will have spent by the end of the current financial year.

Chief executive Ralph Finlay noted the first half performance was the result of a smooth integration of the Jennings, Burtonwood and English Country Inns estates that saw synergy benefits "in excess of £6m, ahead of original targets".

"These acquisitions are consistent with our clear strategy of investment in predominantly freehold community pubs," Mr Finlay added.

Tenants could now choose a wider range of brands, with those in the recently acquired Celtic Inns estate also benefiting from the new arrangements.

Mr Finlay said current trading was said to be "satisfactory and in line with expectations".