Wolverhampton puts fizz into figures

WOLVERHAMPTON & Dudley Breweries proved that its shareholders were right to reject last year's hostile takeover bid from Pubmaster with a solid set of trading figures for recent weeks.

Like-for-like sales at its managed community pubs were up 4% in the 16 weeks to 19 January. The total comparable sales for its managed estate, including 50 pubs up for sale, was dragged down to 2.5% on the year.

Since shareholders rejected the 513p-a-share takeover offer, they have seen the shares race ahead, jumping from 500p to more than 630p in the past three months.

That meant it had to revise plans for a share buyback at 491p, instead opting to pay an 80p special dividend. A further £24m market purchase is planned for the coming months, although with the price racing ahead, chief executive Ralph Findlay may have to change his mind. Wolves said it had cut net debt from £450m at the end of last September to £413m, thanks in part to disposals.

Meanwhile, the group is on track to transform 28 more of its community pubs into the larger, female-friendly Bostin Local format. 'This is the most stable business in its market,' Teather & Greenwood analyst Nigel Popham said.