29th Mar 2006 07:01
Wolverhampton& Dudley Breweries PLC29 March 2006 29 March 2006 The Wolverhampton & Dudley Breweries, PLC ('W&DB') 24 Weeks Trading Statement In accordance with its usual practice, the Board of The Wolverhampton & DudleyBreweries, PLC has issued the following trading update* prior to the end of thecurrent half-year on 1 April 2006. Trading Trading overall in the 24 weeks to 18 March 2006 has been satisfactory and inline with expectations. Total like-for-like sales in Pathfinder pubs were 2.2% ahead of last year in the9 weeks since we last reported at the Annual General Meeting on 20 January 2006and are 1.0% ahead of last year for the 24-week period from 2 October 2005. In The Union Pub Company, like-for-like sales remain 1.0% ahead of last year forthe same 24-week period. The Group's operating margin remains above last year despite the impact ofhigher energy prices and the increased minimum wage as a result of goodmanagement of costs. This year, the Easter bank holiday, which fell in the first half-year last year,falls in the second half-year. The like-for-like figures quoted exclude Eastertrading last year. Celtic Inns ('Celtic') The acquisition of Celtic for £43.6m was completed on 17 March 2006 with theintegration of systems expected to be complete by the end of March. The 70 pubsacquired are a good geographical and operational fit. The acquisition alsorepresents an excellent opportunity for Celtic tenants to access W&DB's industryleading agreements and a much wider brands portfolio. Transfer of managed pubs to tenancy As previously highlighted, an advantage of our operating model is that it givesconsiderable flexibility in managing cost pressures. We have identified 93 pubswhich will transfer from Pathfinder Pubs to The Union Pub Company at the end ofMarch 2006. As a result we expect to reduce operating costs, helping to offsetincreases in energy costs and the minimum wage, demonstrating the flexibility ofour integrated business model. Commenting: Ralph Findlay, Chief Executive, said: "We remain cautious about the outlook forconsumer spending, and anticipate that legislative and cost pressures willcontinue. However, we have one of the highest quality estates in the industryand a range of great value offers. As a result, we are continuing to make goodprogress." ENQUIRIES: The Wolverhampton & Dudley Breweries, PLC Hudson SandlerRalph Findlay, Chief Executive Andrew HayesPaul Inglett, Finance Director Nick LyonTel: 01902 329516 James White Tel: 020 7796 4133 * The update covers the 24 week period ended 18 March 2006. The results for the26 week period ending on 1 April 2006 (the interim results) will be released on26 May 2006. High quality images for the media to access and download free of charge areavailable from Visual Media Online at www.vismedia.co.uk This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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