UK brewer W&DB first-half profit up 13.6 per cent

Britain's Wolverhampton & Dudley Breweries reported a 13.6 per cent increase in first-half profit yesterday and said trading has been strong since the period ended on April 2.

"Trading over the Easter bank holiday weekend and since April 2 has been good and in line with expectations," Chief Executive Ralph Findlay said in a statement.

Profit before tax and exceptional items was £36 million, said W&DB, adding that its offer to buy the 177-year-old northern brewer and pub owner Jennings Brothers had now gone unconditional.

"Our strong performance and market position give us confidence in a satisfactory out-turn for the year in line with our expectations," W&DB said in a statement.

Like-for-like sales were up 3.1 per cent at the group's managed Pathfinder Pubs, which include the Pitcher & Piano chain, and up 3.2 per cent at its tenanted Union Pub Company.

W&DB shares, which like all pub stocks have struggled recently due to consumer spending fears, closed at 1,068 pence on Thursday, valuing the group at around £820 million. Pub shares have stumbled in the last four weeks after leisure group Whitbread warned that consumers were spending less at its health clubs and pub restaurants.

"A slow-down in consumer expenditure has been widely reported," said W&DB.

"We believe our strategy is well suited to these slower market conditions," it added. "Our preference is for good quality freehold community pubs, which are less vulnerable than those on the high street to a potential consumer slowdown."

The interim dividend was increased 10 per cent to 13.2 pence.