Wolverhampton & Dudley Breweries was cheered today (Tuesday) with the announcement a 29.5% leap in annual profits to £65m. But the troubled regional brewer failed to reveal the outcome of its eagerly awaited strategic review, nor would it comment on bid talks.
The group was expected to report the outcome of its review, which is designed to identify ways of maximising shareholder value, at the same time as its annual results for the year to September 2000.
Chairman David Miller said the review, would now be completed "as soon as possible", although no deadline was given.
W&D's annual figures showed a 29.5% increase in pre-tax profits, before exceptionals and goodwill, to £65m, ahead of market expectations. It reflected a major improvement in second half operating margins to 20.1%, up from 16.2% in the first half of the year. The group benefited from £24m of initial cost savings from the Marstons and Mansfield integration coming through, tighter cost control and the disposal of a number of underperforming pubs.
Group finance director and chief executive designate Ralph Findlay added that margins were likely to show further growth this coming year as the full benefit of the £32m Marston/Mansfield cost savings programme kicked-in. Price increases and a new food distribution agreement would also aid profitability.
Turnover rose 44% to £598.8m although like-for-like sales, stripping out the
effect of new pub openings and closures, fell 1.1% against last year. Findlay said this had been a "good performance" given the difficult trading backdrop. Current trading was in line with expectations.
In all, 480 pubs, mainly tenancies, were sold during the year. Findlay said the group would continue to 'churn' the tail-end of its estate
o W&D is the current target of a bid approach from Robert Beare's Noble Leisure Group, backed by venture capital firm Botts & Co. There is also understood to be a management buy-out bid being put together, which involves Findlay and current managing director David Thompson.
Meanwhile, the non-executives on the board are understood to be ready to consider bids for W&D's 850-strong tenanted estate.
• First published 29/11/00
• See Breare to cut offer for Wolves
• See W&D earmarks Marstonés brewery for axe
The group was expected to report the outcome of its review, which is designed to identify ways of maximising shareholder value, at the same time as its annual results for the year to September 2000.
Chairman David Miller said the review, would now be completed "as soon as possible", although no deadline was given.
W&D's annual figures showed a 29.5% increase in pre-tax profits, before exceptionals and goodwill, to £65m, ahead of market expectations. It reflected a major improvement in second half operating margins to 20.1%, up from 16.2% in the first half of the year. The group benefited from £24m of initial cost savings from the Marstons and Mansfield integration coming through, tighter cost control and the disposal of a number of underperforming pubs.
Group finance director and chief executive designate Ralph Findlay added that margins were likely to show further growth this coming year as the full benefit of the £32m Marston/Mansfield cost savings programme kicked-in. Price increases and a new food distribution agreement would also aid profitability.
Turnover rose 44% to £598.8m although like-for-like sales, stripping out the
effect of new pub openings and closures, fell 1.1% against last year. Findlay said this had been a "good performance" given the difficult trading backdrop. Current trading was in line with expectations.
In all, 480 pubs, mainly tenancies, were sold during the year. Findlay said the group would continue to 'churn' the tail-end of its estate
o W&D is the current target of a bid approach from Robert Beare's Noble Leisure Group, backed by venture capital firm Botts & Co. There is also understood to be a management buy-out bid being put together, which involves Findlay and current managing director David Thompson.
Meanwhile, the non-executives on the board are understood to be ready to consider bids for W&D's 850-strong tenanted estate.
• First published 29/11/00
• See Breare to cut offer for Wolves
• See W&D earmarks Marstonés brewery for axe
