Demand for real ales, including Black Country-brewed Banks’s, combined with value for money meals has driven a sales turnaround at Wolverhampton-based pubs and brewing giant Marston’s.

The group, formerly known as Wolverhampton & Dudley Breweries, said higher strength cask beers were in demand, while the “two meals for a tenner” offer at many of its outlets had attracted many budget-conscious diners.

The company’s 550-strong managed pubs division, which includes the Pitcher & Piano and Tavern Table chains, enjoyed a like-for-like sales increase of 3.1 per cent for the past eight weeks and two days to Monday this week, compared with a 1.8 per cent decline seen aross the first 27 weeks of the group’s financial year.

Marston’s said there had been a modest improvement in its performance since January, but said it remained cautious about prospects.

The news went down well in the City, with shares opening more than four per cent higher following the trading update.

The Chapel Ash-based group described business over the Easter break as satisfactory, but said the later timing of this year’s holiday period would affect results for the six months to april 4.

The figures, which will be published on May 22, will not have the benefit of an additional £2 million in operating profits seen in 2008.

Chief executive Ralph Findlay said: “Good, well positioned pubs with sustainable rents operated by skilled and committed licensees continue to trade well.”

Sales of real ales were up 16 per cent in the first half of the financial year, helped by acquiring of Wychwood Brewery last April.

Marston’s said its brands increased share in a weak market for beer, reflecting the increased popularity of regional cask beers in its pubs.