Marston's is booming

Banks's brewer Marston's today revealed business is booming as speculation continues about a takeover.

The Black Country-based pubs and brewing giant shrugged off the effects of the new smoking ban but despite ringing up big increases in food and beer sales warned that the summer flooding could dampen profits.

The brewer said it was cashing in on targeting the growing pub food market.

But Marston's, formerly Wolverhampton & Dudley Breweries, said the downpours of June and July would lead to full-year profits "slightly below" the £100 million expected by analysts for the year to September 29.

Meanwhile, there were rumours in the City that rival Greene King, based in Suffolk, was looking to launch a bid for Marston's.

The speculation helped Greene King's shares jump by 26p, with a bid mooted as a "golden scenario" by investment bankers.

But analysts say there is little love lost between the management of the two companies, making the chances of a friendly bid remote.

Marston's today refused to comment on the speculation. Chief executive Ralph Findlay said the introduction of the smoking ban in England had had "no discernable" impact on trading to date.

In the group's 550 managed pubs, food sales jumped by more than 13 per cent and now represent more than a third of retail sales, while the 1,722 tenanted and leased outlets saw average profits per pub surge by 13 per cent.

Marston's also cheered a near six per cent rise in sales for Marston's Pedigree beer, while sales of Jennings Cumberland Ale also soared, by 30 per cent.