UK: Wolverhampton & Dudley Breweries announce 2.2 % sales increase in Pathfinder pubs
Wolverhampton & Dudley Breweries reassured the market on March 29 with a 2.2 % increase in sales at its managed Pathfinder pubs, Reuters announced. W&DB, which owns over 2,300 pubs, said Pathfinder had increased like-for-like sales by 2.2 % in the last nine weeks, improving on the latest 0.3 % rise it reported at its January annual general meeting (AGM).
W&DB had first mentioned subdued trading at its annual results in December, knocking its shares by 3 % despite a 16 % increase in profit. "We remain cautious about the outlook for consumer spending, and anticipate that legislative and cost pressures will continue," Chief Executive Ralph Findlay said in a statement.
Its shares rose 1.9 % to 1,255 pence by 10:12 a.m., valuing the group at around 970 million pounds. Analyst Greg Feehely at Altium Securities said: "The share price has underperformed by 10.4 % over the last three months after what was a relatively lacklustre AGM update in January."
"However, given the recently improved performance within the managed pub division this does now look unwarranted," he added. Total like-for-like sales at both Pathfinder and its tenanted Union Pub Company were 1 % ahead of last year for the 24-week period from October 2.
"The group's operating margin remains above last year despite the impact of higher energy prices and the increased minimum wage," W&DB added. The group said it had identified 93 pubs to transfer from Pathfinder to the Union Pub Company at the end of March. "As a result we expect to reduce operating costs, helping to offset increases in energy costs and the minimum wage, demonstrating the flexibility of our integrated business model," it said.
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