W&D sales up despite Pubmaster "distraction"
Wolverhampton & Dudley (W&D) announced a steady rise in turnover today, despite the "distraction" of Pubmaster's failed £425m hostile takeover bid.
In August, shareholders ended 14 months of uncertainty and voted in favour of keeping Britain's biggest regional brewer independent.
In a trading statement released today, the group said that, in the 47-week period ending 25 August, group turnover rose to £515.4m, compared with £535.4m for the same period last year.
W&D attributes this rise to a disposal programme of non-core pubs, the transfer of smaller managed pubs to tenancies, and the concentration on higher-margin businesses within its beers division.
Chief executive Ralph Findlay has forecast pre-tax profit for the year of £76m, 16.9% higher than last year.
The retail division, made up of 550 pubs, saw like-for-like sales 2.2% ahead of last year. It opened seven of its Bostin Local chain, bringing the total to 18, and has identified another 37 sites for conversion next year. It has also earmarked 67 other pubs for disposal.
W&D's tenanted estate, the Union Pub Company, saw a drop in sales of 1.2% compared with the same period last year. The Union Pub Company now consists of 1,090 pubs following the transfer of 200 pubs to tenancy.
The company has made £61.6m from disposals in the financial year to date, including the sale of 50 pubs to the Barracuda Group for £37.3m announced last week.
The group has promised £100m to shareholders by the end of December, and this hangs on a further 170 disposals worth £65m being completed after 23 July - including the Pitcher & Piano chain. Since that date it has sold 68 pubs for £44.5m.
Findlay says trading is "satisfactory" and expects no significant impact on trading following the terroist attacks on America.
"We will continue to monitor the markets carefully," he said. "Our businesses are in stable markets with defensive characteristics, and we remian confident of prospects."
