W&D agrees Burtonwood takeover

Pub company and brewer Wolverhampton & Dudley (W&D) is to take over Cheshire-based rival Burtonwood in an agreed £120m deal.

Chief executive Ralph Findlay said: "Burtonwood has an excellent estate of 460 pubs which are a good geographic fit with our existing 1,675 pubs."

More than 400 of the Burtonwood pubs will be integrated into the Union Pub Company, W&D's leased and tenanted division.

The rest will join Pathfinder Pubs, its managed house subsidiary.

News of the deal came as W&D announced a 4.7% increase in turnover to £513.7m for the year to 2 October, against £490.5m in 2003.

The company said this was driven by strong like-for-like sales growth, plus the acquisition of Wizard Inns in June.

Underlying pre-tax profit grew by 6.3% to £77.7m.

At the 1,162-strong Union Pub Company, like-for-like sales rose by 4.3%. Turnover increased by 2.1% to £118.2m, and underlying operating profit by 3.9% to £50.9m.

At Patfinder Pubs, like for like sales increased by 3.2%, turnover was up by 9% to £275.2m and underlying operating profit increased by 10.2% to £58.4m.

Food now accounts for 29% of sales at Pathfinder, and up to 60% in its food-led pubs.

W&D said the first eight weeks of the new financial year had seen a good start, with like-for-like sales in the Pathfinder pubs ahead by 3.2% and in the Union Pub Company 4.2% ahead.

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