HALF-TIME pre-tax profits at Wolverhampton & Dudley

Breweries were up 8% to a record #20.3m in spite of a poor Easter trading period.

The company is looking to boost volume sales by freezing its prices for the rest of the year and hopes to attract new customers during the World Cup.

Wolverhampton is concerned that 40% of all beer drunk during the Christmas period was imported lager and warned the on-trade to be careful in its pricing.

The 250 or so concept pubs in the portfolio face growing town centre competition, particularly those which offer snacks and food, resulting in a tighter capital expenditure programme. Last year this amounted to #72m, it will fall to around #45m in the current year and to around #40m for 1998-99.

Wolverhampton managed to improve volume sales thanks to the introduction of Heineken lager, which is brewed at its Cameron's brewery in Hartlepool.

Despite a slow start to the

second half, the City is looking for pre-tax profits rising from #43.1m to #44m.

Thanks to a #33m shares buy-back earlier this year, earnings will increase from 46.8p to 50.4p to leave the shares trading at just 10 times likely earnings at 505p, while standing at a 19% discount to net asset value.

The interim dividend has been raised 10% to 7.26p.